| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Alterian (ALN) Software |
Shares | Management at the marketing software supplier have already turned down one takeover offer. However, a higher offer could well be on the way. “Speculative” buy. | 79p 210/50.5 |
|
Anglo Pacific Group (APF) General mining |
The Daily Telegraph | Revenues at the royalty mining company rose to £8.3 million in the third quarter. Management aim to grow the 3.6% dividend yield making it a long-term buy. | 269.5p 369.25p/240p |
|
APR Energy (APR) Electricity |
The Daily Telegraph | Like its bigger rival Aggreko, the power generator supplier is benefitting from strong demand in emerging markets. Year-on-year sales were up 63% in the third quarter. | 1,111p 1,128p/1,028p |
|
Avatca (AVCT) Medical equipment |
Investors Chronicle | The animal healthcare equipment provider finally looks like breaking even. It’s still “highly speculative” but with turnover up 42%, investors should buy in now. | 1p 1.75p/0.5p |
|
AZ Electronic Materials (AZEM) Speciality chemicals |
The Mail on Sunday | The micro component maker’s products are used in smartphones and tablet computers. Thanks to rising demand for these gadgets underlying profits are expected to jump 15%. “Buy” | 251.5p 206p/338p |
|
BP (BP) Oil & gas |
Shares | The oil & gas major has already sold $30billion of assets and plans to sell $15billion more, which is likely to be used to beef up the 3.5% dividend yield. | 455.25p 509p/363p |
|
Croda (CRDA) Chemicals |
The Sunday Telegraph | The Yorkshire-based chemicals manufacturer sells to makers of creams and potions. Shares dipped following its third-quarter update but it looks cheap on a p/e of 14. | 1,733p 2,081p/1,367p |
|
Debenhams (DEB) General retailers |
Investors Chronicle | The retailer has increased profits by 141% during the last year. The new CEO is planning to double its portfolio of international stores in the next five years. “Good value.” | 67p 79p/50p |
|
Glencore (GLEN) General mining |
The Sunday Times | Shares in the commodities trading house have fallen 17% since May. But it will receive a boost when changes to its FTSE weighting force tracker funds to buy. | 450p 526.5p/345p |
|
Hunting (HTG) Oil equipment & services |
The Independent | The oil services firm has been on a spending spree of late, snapping up rivals with shale gas expertise. It could benefit from the UK’s recent unconventional gas find. | 666p 817p/530p |
|
Inchcape (INCH) Speciality retailers |
The Daily Telegraph | The global car dealership has benefited from a strong presence in Asia where sales are up. Group sales rose 4.1% year-on-year and it is cheap on a forward p/e of 9. | 326.25p 425.5p/268.5p |
|
Ithaca Energy (IAE) Oil & gas |
Shares | The North Sea oil producer recently announced plans to quadruple production in one of its fields. More catalysts should lift the stock price so investors should keep buying. | 139.25p 191p/89.75p |
|
Laird (LRD) Telecommunications equipment |
The Times | The succesful British technology company is “languishing on a silly rating because of a general fall in the markets”. Third-quarter sales are up 18%, and it trades on a p/e of 10. | 151.5p 207p/127.9p |
|
London Mining (Lond) Iron & steel |
Shares | There’s no doubt that the iron ore miner would be affected by a downturn yet unlike some peers it is protected by lucrative fixed-term contracts with reliable buyers. | 322.8p 436.5p/283p |
|
Mattioli Woods (MTW) Asset managers |
Investors Chronicle | The pensions services provider has expanded through recent acquisitions. It’s also investing in internal systems that should boost sales. Cheap on a forward p/e of 10. | 238p 340p/230p |
|
Smiths News (NWS) Retailers |
Investors Chronicle | The newspaper and magazine wholesaler faces a declining market. Yet impressive cost-cutting has boosted profits. Good value on a p/e of 5 and a 9% dividend yield. | 89p 124p/75p |
|
Office2Office (OFF) Business support services |
The Independent | The firm supplies office equipment to the UK government. Sales have been lower than expected so far, but should improve in the future. “Hold” | 148.5p 166.5p/112.5p |
|
Petropavlovsk (POG) Gold mining |
Shares | After a long period of disappointment the gold miner finally looks like coming good. Third-quarter production was up 65% year-on-year and the share price should rise. | 786p 1,165p/543.5p |
|
Zambeef (ZAM) Retail |
Investors Chronicle | The Zambian beef producer is benefitting from an expansion into Nigeria and Ghana. A partnership with a regional supermarket should also boost sales. “Buy.” | 45p 67p/38p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
BP (BP) Oil & gas |
The Times | The oil major’s “shrink to grow” strategy is “dubious”. If oil prices stay high BP risks getting left behind and shareholders could face a long wait for a real growth in profits. | 467p 509p/363p |
|
Charles Taylor Consulting (CTR) Speciality finance |
The Independent | A recent profit warning showed that the insurance service provider is badly affected by the red tape that is hitting the sector. The attractive p/e of 8 is likely to rise. “Sell.” | 130p 190.5p/122p |
|
Go-Ahead (GOG) Travel & leisure |
Investors Chronicle | The train and bus operator missed out on the Greater Anglia train franchise. It’s a big blow for its expansion plans and leaves an uncertain future. “Sell.” | 1,396p 1,598p/1,203p |
|
JD Wetherspoon (JDW) Travel & leisure |
Investors Chronicle | Last year, the pub operator’s operating margins fell to 9.5%. Given the “punishing” current environment, the slide looks set to continue. Time to “sell”. | 412p 473p/371p |
|
New World Resources (NWR) Coal |
Shares | The coking coal producer sells its wares to steel producers. That makes it particularly vulnerable to a global slowdown. With the steel price falling fast it’s time to sell. | 598p 1,0555.5p/421p |
|
Royal Bank of Scotland (RBS) Banking |
Investors Chronicle | The bank’s lucrative investment banking arm could be affected by new ‘ringfencing’ regulations, while an economic slowdown could worsen its already weak loan book. | 24.2p 49.5p/19.6p |