| Buy | |||
|---|---|---|---|
| Company | Publication | Reason | Price tipped |
|
Baobab Resources (BAO) General mining |
Shares | The Mozambique-focused miner will soon update the markets with a host of new iron and coal projects. This value is not priced in so good news would push up the price. “Buy.” | 20.6p 53.75p/9.5p |
|
BrainJuicer (BJU) Media agencies |
Shares | The online market research firm is expanding internationally and growing earnings “at a double digit clip”. A “buy for the growth potential”. | 280p 193.5p/302.5p |
|
Capita (CPI) Business support services |
The Daily Telegraph | In the first half of the year the outsourcing group increased sales by 3% to £1.4bn while profits rose to £141.4m. Recent acquisition should help maintain growth. | 713p 794.5p/635.5p |
|
Coal of Africa (CZA) Coal |
Investors Chronicle | The loss-making coal miner looks like it is finally turning the corner. It doubled output of thermal coal in the last year. A forward multiple of eight makes it a buy. | 56.25p 111.5p/49p |
|
Flying Brands (FBDU) Speciality retailers |
The Independent | The home shopping firm is already feeling the effects of the tough conditions on the high street. But a recent deal to sell property looks to be a good one. “Hold.” | 13.5p 58.5p/11.5p |
|
Hydro International (HYD) Industrial machinery |
Investors Chronicle | The water treatment equipment manufacturer has been boosted by a large order from Thames Water, while a new focus on emerging markets should pay off. “Buy.” | 140p 146.5p/87.25p |
|
Imperial Tobacco (IMT) Tobacco |
The Daily Telegraph | The cigarette-maker recently assured investors that it would meet its full-year targets, and increased its dividend. Shares, up 30% since 2008, still have furrther to go. | 2,040p 2,231p/1,784p |
|
International Ferro Metals (IFL) Iron & steel |
Investors Chronicle | The South African ferrochrome producer has been hit by furnace problems and rising energy bills. But the 50% discount to book value makes it very cheap. “Buy.” | 18p 36p/13.93p |
|
Ladbrokes (LAD) Gambling |
Shares | The bookie looks set to buy online rival Sportingbet (SBT). If the deal goes through it will add online capabilities. If it doesn’t, then it will become a target itself. “Buy.” | 128p 153.25p/120p |
|
Nature Group (NGR) Waste & disposal services |
Investors Chronicle | An explosion at one of the oil & gas waste disposal firm’s processing facilities sent the share price tumbling. However, a new Brazilian contract should prove lucrative. | 73p 97p/45.5p |
|
M&C Saatchi (SAA) Media agency |
The Independent | Shares in the advertising agency have soared on the back of a strong six months that beat analysts’ expectations. Yet its p/e of 8.4 is cheaper than its peers. “Buy.” | 125.75p 150p/109p |
|
Nautical Petroleum (NPE) Exploration & production |
The Times | The oil & gas producer made a massive North Sea discovery but its price “barely budged”. The shares are on 40% of its fully risked net assets – a big discount. | 289.5p 547p/22.25p |
|
PhosAgro (PHOR) Speciality chemicals |
Shares | At present the miner-cum-chemicals company, which turns phosphate rock into fertiliser, is “under the radar of most UK investors”. Buy now while it’s cheap. | 12p 14.75p/11.25 |
|
Roche (ROG:VTX) Pharmaceuticals |
Investors Chronicle | The Swiss pharmaceutical firm is benefitting from the falling Swiss franc, while it seems the acquisition of Genetech is starting to pay off. Good value on a p/e of ten. “Buy.” | SFr 137 |
|
Reed Elsevier (REL) Publishing |
The Independent | The publisher and information provider has boosted its financial services offering by buying a US competitor for £343m. It was a good buy so “we’d move in”. | 497.3p 590.5p/461.25p |
|
Ricardo (RCDO) Business support services |
The Times | The supercar/amoured car parts-maker “has never been busier”. It has projects with McLaren, Bugatti and the MoD, and looks cheap on a sub-13 p/e. | 357p 410p/265p |
|
Spirent Communications (SPT) Telecommunications equipment |
Shares | The Crawley-based firm should benefit from the roll-out of 4G telecommunication systems. What’s more, sales and profits were both up in the last six months. “Buy.” | 125p 160.25p/116p |
|
Symphony Environmental Technologies (SYM) Containers & packaging |
Investors Chronicle | The biodegradable plastic-bag maker had a painful six months as costs rose 11% and the share price fell by 20%. However, legislation will open up new markets. | 8.75p 21p/8p |
|
Telit Communications (TCM) Telecommunications equipment |
The Independent | The wireless technology firm looks set to benefit from EU rules for mandatory in-car safety gadgets. Profits were up neary 90% in the last six months. “Buy.” | 72.50p 103.50p/57.50p |
|
Tribal (TRB) Business support services |
The Independent | At first glance the outsourcing firm would seem vulnerable to public spending cuts. Yet it has cut costs and repositioned itself around the education market. “Buy”. | 47.25p 80.5p/24.25p |
|
United Utilities (UU) Water |
The Times | The water company has a “virtually guaranteed revenue base” and yields 5% – making it “pretty attractive for the retail investor” in testing times like these. | 599p 631.5p/543.5p |
| Sell | |||
| Company | Publication | Reason | Price tipped |
|
Braemar Shipping Services (BMS) Transportation services |
Investors Chronicle | The “tide has turned” for the shipping firm, which looks exposed to a global slow- down. A p/e of nine isn’t cheap for the sector and a profit warning hints it’s time to sell. | 310p 558p/282p |
|
Mothercare (MTC) General retailers |
Shares | The baby clothes and toy retailer has enjoyed overseas growth. Unfortunately, it still relies heavily on the UK high street which is getting pummelled. “Sell.” | 337p 627.5p/317.25p |
|
Micro Focus (MCRO) Software |
The Times | Despite a “truly awful” couple of years, the software maker still generates “impressive amounts of cash”. But even on a sub ten p/e it doesn’t “look that appealing”. | 315.75p 239.5p/426.25p |
|
Ocado (OCDO) Food retailers & wholesalers |
Investors Chronicle | Sales and profit margins at the internet grocer are increasing, but more slowly than expected. Longer-term it faces a threat from Waitrose’s entrance into online. | 113p 285p/91p |
|
TUI (TT) Travel & leisure |
The Times | The travel agent’s share has fallen 40% even though margins “have held up”. It looks cheap on a p/e of six, but given the lack of visibility “I would not be in a hurry to buy”. | 149p 272p/137.25p |