| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Aveva (AVV) Software |
The Times | This firm’s software helps design oil, gas and power plants. And it’s top quality: though the shares are on a 20 p/e, they’re “worth tucking away on weakness”. | 1,313p 1,799p/1,312p |
|
Avanti (AVN) Broadband operator |
The Independent | Pre-tax losses at this satellite broadband operator have risen, and the shares trade at two-year lows. But four new contracts provide hope for the future. | 258p 735p/248p |
|
Carillion (CLLN) Construction services |
Investors Chronicle | Regardless of recession, construction work goes on. This services provider is doing fine: by the end of June it had secured 96% of its 2011 targeted revenue. | 322p 403p/299p |
|
Collins Stewart (CSHP) Financial services |
Investors Chronicle | Market volatility will hit this stockbroker’s full-year profits. “But the business remains sound.” And on a near-6% yield and p/e of 10.5, it’s “still a buy”. | 62p 91p/62p |
|
Compass Group (CPG) Catering |
The Independent | A “resilient business with a strong balance sheet”, this catering giant could soon return cash to shareholders. The stock is “affordable” on a sub-13 forward p/e. | 512p 612p/511p |
|
Entertainment One (ETO) Leisure |
Mail on Sunday | “It’s not yet clear” if this film firm “will become the target of a successful bid”. But “long-term prospects look solid”. At 161p, “think about buying”. | 187p 202p/71p |
|
Eros International (EROS) Leisure |
Sunday Telegraph | This AIM-listed film maker should trade like a growth stock” as its sector is set to keep expanding. On a “very low” p/e of 6.7, falling to six next year, it’s a buy. | 209p 258p/203p |
|
European Goldfields (EGU) Gold mining |
Daily Telegraph | Having just obtained enough cheap funding, this miner is well-placed to develop all its mines and “is now poised to become Europe’s primary gold producer”. | 600p 1070p/525p |
|
Future Group (FUTR) Publishing |
The Independent | A “reassuring” trading update has just suggested full-year results will be better than expected. And the over-9% prospective yield makes this stock a buy. | 10p 30p/9.75p |
|
Galliford Try (GFRD) Housebuilding |
Shares | This firm’s “transformation into a flourishing, fast-growing and southern-biased” housebuilder is still “unappreciated, despite its reassuring order book”. Buy. | 434p 530p/276p |
|
Hammerson (HMSO) REIT |
The Independent | This retail and office-space owner has been “espousing an upbeat view” on the sector. A 31% discount to net asset value and 4.5% yield “seals the buy case”. | 356p 491p/356p |
|
HomeServe (HSV) Plumbing |
The Times | “One of the less well-known British success stories”, this firm covers domestic plumbing emergencies. Pricey on 17 times earnings, but a “buy on weakness”. | 454p 532p/405p |
|
Man Group (EMG) Fund management |
The Times | This fund manager’s shares are “over-reacting” to this summer’s profit warning. But they have the support of a dividend yield approaching 8%. | 157p 311p/157p |
|
Misys (MSY) Software |
The Independent | Demand in its fast growing markets is strong, says this banking software firm. A p/e of 11 for next year, falling to under nine for the year after, makes it cheap. | 215p 420p/215p |
|
Primary Health Prop. (PHP) REIT |
Investors Chronicle | This owner (of mainly doctors’ surgeries) has a “solid business model”. Add in a 5.7% yield and steady dividend growth, and PHP “looks hard to beat”. | 316p 339p/280p |
|
Restore (RST) Support Services |
Investors Chronicle | The “strengthened finances” of this AIM-listed records management and damp proofing group should result in “further gains” – but it’s “for risk seekers”. | 64p 73p/27p |
|
Reed Elsevier (REL) Publishing |
Sunday Times | This publisher is “resisting pressure for a break up”. But on a 30% discount to break-up value and a p/e of ten next year, spin-off talk could boost the shares. | 487p 591p/461p |
|
Shanks (SKS) Waste Disposal |
Daily Telegraph | The move from landfill to “more intelligent” disposing and recycling of waste is good news. The forecast p/e to March 2013 of 12.6 makes the shares a buy. | 105p 131p/103p |
|
Tate & Lyle (TATE) Food manufacturing |
Daily Telegraph | Acquiring “battered-down quality companies with high yields” remains “a good strategy”. This food firm is expected to pay a current year dividend of 25p. Buy. | 625p 656p/468p |
|
Tesco (TSCO) Food retailing |
Daily Telegraph | Despite the ‘Big Price Drop’ campaign, Warren Buffett lifting his stake to 3.64% is “a very serious move. The shares remain a buy for international growth”. | 370p 441p/356p |
|
Unite (UTG) Student Accommodation |
The Independent | An “overdue axe to senior management” should help save £2.5m/year at this student housing group. A buy on a “ridiculous” 50% discount to net asset value. | 154p 230p/153p |
|
United Utilities (UU/) Water utility |
Investors Chronicle | This water supplier’s “robust financials” have allowed a faster-than-expected cut in its pension deficit. On a 5% yield, “the shares remain an income buy”. | 617p 631p/543p |
|
Weir Group (WEIR) Engineering |
Daily Telegraph | “Significant exposure” to mining, oil and gas has recently hit this pumpmaker’s shares. But investors should use this fall to buy a good name at a cheap price. | 1,346p 2,218p/1,346p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Carnival (CCL) Cruise ship operator |
Investors Chronicle | Shareholders may be “green around the gills” after recent lurches in this cruise line firm’s stock price. If you’re still on board, the latest rally is a chance to sell | 1,970p 3,153p/1,742p |
|
Electrocomponents (ECM) Electronic components |
The Independent | “Growth is slowing” at this electronic component manufacturer. And sentiment towards the firm isn’t likely to improve soon as the economy worsens. “Sell”. | 188p 295p/180p |
|
Tui Travel (TUI) Travel & Leisure |
Investors Chronicle | The outlook for 2012 is “looking an altogether tougher prospect” than 2011, with advance bookings down 11%. Looming recession suggests caution. “Sell”. | 149p 272p/137p |