| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped/ 52-wk high/low |
|
Aegis (AGS) Media |
The Independent | The marketing agency has upped its guidance for the full year, and looks like a buy with its strong global reach. New contracts with big names, such as Disney, are reassuring. | 137.25p 163.5p/119.5p* |
|
Alkane Energy (ALK) Aim |
Investors Chronicle | The electricity minnow already has contracts for 96% of its output this year and is commissioning a new site. A long-term buy on a 2012 forward p/e of six. | 17.5p 26p/16p |
|
Aveva (AVV) Software / computer services |
The Mail on Sunday | Profits are expected to rise steadily at this software firm over the next few years. November’s results and its long-term prospects should justify the high share price. | 1,625p 1,799p/1,298p |
|
AZ Electronic (AZEM) Chemicals |
Shares | This chemicals materials provider should deliver good growth in its forthcoming results. It is well placed to benefit from rising demand for tablet computers using its components. | 247p 338p/206p |
|
Condor Resources (CNR) Aim |
Shares | The miner hopes to confirm a large gold field by next summer, with further potential upside from other unexplored areas. It’s a prime pick among Aim explorers. | 6.5p 11.25p/2.75p |
|
Dechra Pharmaceuticals (DPH) Pharmaceuticals and biotechnology |
The Sunday Telegraph | Animal health group Dechra is trading ahead of last year, boosted by sales at its new US acquisition. The p/e of 12.9 for the year to June and a 2.4% yield make it a buy. | 521.5p 536.5p/433p |
|
Endace (EDA) Aim |
The Times | This computer security group has delivered 40% revenue growth in the past year, and its increasing focus on cyber-crime detection looks set to bring further rewards. | 512.5p 512.5p/300p |
|
Hamworthy (HMY) Aim |
Shares | Positive results from a US competitor bode well for the performance of oil specialist Hamworthy. A recent acquisition has increased its exposure to this growth sector. | 582.5p 705p/373.75p |
|
Imperial Tobacco (IMT) Tobacco |
Investors Chronicle | Solid results in the face of tough market conditions in southern Europe are reassuring. It’s not overly pricey on a forward p/e of 12, especially with a yield of 4.2%. | 2,267p 2,331p/1,765p |
|
Inmarsat (ISAT) Mobile telecommunications |
The Times | A 30% drop in its stock this year makes the satellite group look undervalued. Third-quarter results were not bad, with profits up 18%. The American arm is also doing well. | 464.5p 719.5p/390p |
|
Legal & General (LGEN) Life insurance |
The Daily Telegraph | Cash generation at this insurer remains well ahead of target, shoring up hopes of a 6.3% dividend yield for next year. It’s a good bet for income-seekers. | 107.5p 124p/90p |
|
Lidco (LID) Aim |
Investors Chronicle | Additional partnership agreements and good peer reviews are encouraging for this healthcare group. It anticipates a profitable second half as new partners bolster trading. | 13p 20.75p/12p |
|
Monitise (MONI) Aim |
Shares | With a balance sheet boosted by extra investment income from Visa Europe, mobile payment group Monitise can accelerate its expansion plans. | 37.25p 39p/18.5p |
|
Randgold Resources (RRS) Mining |
The Independent | This miner is exposed to the rising cost of gold extraction, but third-quarter numbers were impressive and the gold price remains strong amid eurozone troubles. It’s a safe haven. | 7,235p 7,235p/4.320p |
|
RSA Insurance (RSA) Nonlife insurance |
The Daily Telegraph | This consumer and business insurer is doing especially well abroad. The core operation is solid and its exposure to European sovereign debt is small, yet the p/e is just 7.6. | 109.5p 143.5p/105p |
|
Ryanair (RYA) Travel and leisure |
The Daily Telegraph | This airline is a buy, with a special dividend due this year and next on the back of strong cash generation. Solid passenger numbers have offset rising fuel costs. | 3,519p 3,972p/2,830p |
|
Stagecoach (SGC) Travel and leisure |
Investors Chronicle | The forward p/e of ten is undemanding as the bus operator has a good track record in tough times and its American branch keeps growing. | 241p 270p/192p |
|
Sorbic International (SORB) Aim |
Shares | Plans to double production capacity in China should ensure a re-rating for this food preservatives group. Demand will be boosted by regulatory changes in US and Europe. | 11.5p 31.5p/9p |
|
Unilever (ULVR) Food producers |
The Times | Following strong third-quarter results, the consumer group continues with its expansion strategy and has succeeded in passing on rising costs to consumers. | 2,068p 2,114p/1,777p |
|
Victoria Oil & Gas (VOG) Oil and gas producers |
Investors Chronicle | The value of existing reserves means there should be plenty of upside for this stock. In addition, there is billion-barrel oil potential in Siberia, plus big gas reserves in Logbaba. | 4p 7.75p/2p |
|
Weir (WEIR) Industrial engineering |
The Independent | Shares in the oil and gas equipment maker have suffered from fears of falling commodity prices, but the group should benefit from long-term industry prospects. | 1,860p 2,218p/1,375p |
|
Wetherspoon (JDW) Travel and leisure |
The Independent | Despite complaining about tax and levies, the real story for this pub group was strong third-quarter sales. The p/e is a conservative 11.7 supported by a 3.1% yield. | 426p 468p/380.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Barclays (BARC) Banks |
Investors Chronicle | While hardly looking distressed, Barclays continues to rely on volatile investment banking. The tough economic climate will put pressure on the stock, making it a sell. | 175p 333.5p/139p |
|
Eastern Platinum (ELR) Aim |
Investors Chronicle | Falling platinum prices are likely to hit the miner’s profits despite higher production. Earnings downgrades look likely and strike action will reduce production in the short term. | 39.25p 125p/37p |
|
Homeserve (HSV) Support services |
Shares | A potential mis-selling investigation is undermining this plumber. Further details are due with results at end of the month and could spook the market even more. | 354p 532p/354p |
|
Topps Tiles (TPT) General retailers |
Shares | Use the recent uplift in this tiling stock to take profits as upcoming results are likely to focus attention on the gloomy outlook. The downside risk to forecasts remains significant. | 31.5p 84.5p/25.5p |
| *52-week high/low | |||