| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped/ 52wk high/low |
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Alleghany (NYSE:Y) Property & Casualty Insurance |
Barron’s | This reinsurer has recently acquired Transatlantic Holdings. This will broaden its insurance portfolio, yet it is only trading at 80% of its book value. Buy. | $287.56 $342.71/$278.25 |
|
Barratt Developments (BDEV) Household Goods & Home Construction |
The Daily Telegraph | This residential property developer is looking to benefit from the government’s initiative to support first time buyers. Analysts see plenty of upside – buy. | 93.44p 120.6p/65p |
|
Baobab Resources (BAO) Mining |
Investors Chronicles | This bulk commodities producer has achieved “first mover status in Mozambique” but its shares are still trading 40% below a fair value estimation. A speculative buy. | 14p 56.25p/6.88p |
|
Bellway (BWY) Household Goods & Home Construction |
The Daily Telegraph | On virtually any metric, this housebuilder looks good value. It is also one of the safest stocks in its sector. On a “harsh” discount to net assets, it’s a buy. | 699.18p 756.5p/502p |
|
British American Tobacco (BATS) Tobacco |
Shares | Prices for tobacco products are not being hit too badly in spite of the hard economic climate. BAT proved this over last nine months. Buy for a forward 4.9% yield. | 2,928p 2,978p/2,154.5p |
|
Centrica (CNA) Gas, Water & Multiutilities |
The Times | The owner of British Gas “signed a clever deal to buy in 5% of the country’s requirements from Statoil”. This key £13bn deal indicates that Britain’s energy future is based on gas. | 292.5p 351.9p/278.9p |
|
Chesnara (CSN) Life Assurance |
Investors Chronciles | This closed life fund specialist continues to boast solid cash levels, and solvency is double the minimum regulatory requirements. A yield of 10% makes it a buy. | 167p 266p/165p |
|
Cove Energy (COV) Oil & Gas Producers |
The Times | Cove’s 8.5% ownership of a well in Mozambique looks to be bearing fruit. New estimates suggest a capacity of 5bn barrels, up from 2.5bn. This will attract takeover bids – buy. | 89.75p 114p/55.25p |
|
Genel Energy (GENL) Financial Services |
The Sunday Times | The Kurdistan-based oil exporter remains a speculative buy due to ongoing political uncertainties. However, once these problems are resolved, investors “will reap the rewards”. | 860p 1,080p/815p |
|
General Dynamics (NYSE:GD) Defence |
Barron’s | The defence firm is expanding its successful jet division. This month, Warren Buffet’s Berkshire fund took a “significant position” in the shares. Investors should follow his lead. | $64.06 $78.27/$53.95 |
|
GKN (GKN) Automobiles & Parts |
Shares | The diversified engineer has shown steady growth in a choppy market. With £444m of acquisitions in September, this trend seems far from over. Cheap on a p/e of 7.2 for 2012. | 189.8p 249p/122.5p |
|
Hilton Food (HFG) Food Producers |
Shares | The food-packing company enjoys continued growth in Central Europe. Half year revenues rose by 9%. On a p/e of 11.6 and 4% yield, it has to be a buy. | 285p 298p/225p |
|
Hydro International (HYD) Industrial Engineering |
Growth Company Investor | This provider of water control systems just completed a key distribution deal with a Japanese firm. Its shares yield 3%, making them a buy. | 140p 145.5p/83.5p |
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Meredith (NYSE:MDP) Publishing |
Barron’s | The publisher is expected to gain profits from the upcoming US electoral advertisement race. It is currently trading on 10.2 times earnings with a tasty 5.7% yield. | $27.38 $37.51/$21.10 |
|
Persimmon (PSN) Household Goods & Home Construction |
The Daily Telegraph | This housebuilding company is “one of the top picks in the sector” with 12 out of 14 brokers rating it a buy at an avergae price target of 564p. | 464.36p 525.5p/335.9p |
|
Senior (SNR) Aerospace & Defense |
Investors Chronicles | The aircraft parts producer supplies all of the world’s largest aircraft manufacturers. Strong cash flow makes this a buy | 164.9p 193.6p/108.8p |
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Serco (SRP) Support Services |
Investors Chronicles | The outsourcing provider has gained new contracts worth £1.9bn since June 2012. A p/e ratio of 13 is expected to drop to 11 in 2012, making it a buy. | 494p 647.5p/461.2p |
|
Siemens AG (NYSE:SI) Diversified Industrials |
Barron’s | The electornics producer is trading close to 2008-crisis lows, even though it boasts a large order backlog, a healthy balance sheet and €13bn of cash. | $94.69 $146.74/$90.19 |
|
Smith & Nephew (SN.) Health Care Equipment & Services |
Moneywise | This medical devices producer is currently trading more cheaply than it should due to surgical delays caused by NHS budget cuts. The concern is overdone – buy. | 571p 748.5p/501p |
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Tethys Petroleum (TPL) Oil & Gas Producers |
Shares | The oil producer has reported great flow from a new well in Kazakhstan. Production could rise from 2,000 barrels of oil per day to 6,000. If so, this stock is a buy at current levels. | 42.9p 64p/28.5p |
|
Trifast (TRI) Industrial Engineering |
Shares | The industrial fastener manufacturer’s recent purchase of PSEP increased its exposure to Asian growth. Interim results showed revenue up by 6% and gross profit up by 6.5%. It’s in a position to exploit pent up demand – buy. | 39.5p 54.75p/28.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped/ 52wk high/low |
|
Brammer (BRAM) Support Services |
Investors Chronicles | This is hardly looks the best time for small cap Brammer as a provider to Europe’s factories. With the eurozone on the brink of a major recession, it’s time to get out. | 255p 334.75p/140p |
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Clinton Cards (CC.) General Retailers |
Shares | This greetings cards manufacturer can expect falling sales. Year-end net debt of £34m makes Clinton a “structurally challenged” firm. Sell before a torrid Christmas. | 14p 39.25p/7p |
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Keller (KLR) Construction & Marterials |
Investors Chronicles | This ground engineering specialist issued a profit warning at the start of November, and analysts have slashed its 2012 profit forecast by 25%. A risky stock to hold. Sell. | 265p 704.5p/235p |
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Mitie (MTO) Support Services |
Shares | This facilities manager is losing momentum. A scarcity of contracts means investors should book profits and buy back the shares when they are cheaper. | 245.3p 263.9p/187.6p |