| Buy |
|---|
| Company | Publication | Reason | Price tipped |
|---|
Advanced Medical Solutions (AMS)
Health equipment |
Investors Chronicle |
This medical technology firm’s recent purchase of Germany’s Resorba should help it find new markets and increase earnings. Even on a price/earnings (p/e) ratio of 17 it’s a buy. |
88p
96p/63p* |
Anglo American (AAL)
Mining |
The Daily Telegraph |
Despite a legal dispute over Chilean assets, the shares in this FTSE 100 miner look cheap. The 2012 p/e is a modest 8.7 and the shares are yielding 1.9%. It’s a good time to buy. |
2,679p
3,400p/2,065p |
Asian Plantations (PALM)
Aim |
Shares |
The Malaysian palm oil plantation developer is set to ramp up planting and open a milling complex in the fourth quarter of 2012. The firm is also a potential bid target – buy. |
240p
282p/230p |
BAE Systems (BA)
Aerospace and defence |
The Daily Telegraph |
Despite setbacks, this defence contractor looks cheap. The shares trade at 8.3 times 2012 earnings and yield 6.1%. Prospects for the firm’s cyber-security arm, Detica, look good. |
325.25p
349p/241p |
BG Group (BG)
Oil & Gas |
The Daily Telegraph |
This gas giant is a good capital appreciation play, with the outlook for its liquid natural gas operation recently adjusted up by 30%. A high p/e of 16.2 is justified by growth prospects. |
1,491p
1,582p/1,105p |
BT (BT)
Fixed-line telecoms |
Investors Chronicle |
The telecom firm’s strength in broadband internet make it a growth play, and it’s tipped to control one third of the market by 2013. On a p/e of nine, the shares look cheap. |
214p
217p/157p |
Catlin (CGL)
Insurance |
Shares |
This year should see higher premiums following huge losses in the insurance sector in 2011. Annual dividend increases of 6% look enticing and make Catlin the pick of the bunch. |
425p
451p/327p |
Devro (DVO)
Food |
Shares |
The collagen casing maker is a good play on emerging-market growth and higher meat consumption. With 10% growth in profits forecast, the shares looks cheap on a p/e of 14. |
279p
299p/227p |
E2V Technologies (E2V)
Technology |
The Daily Telegraph |
A deal with miner Rio Tinto for this tech firm’s microwave technology could yield “spectacular” upside if it’s a commercial success. A speculative buy on a 2013 p/e of 10.6. |
138p
146p/85p |
Entertainment One (ETO)
Film distribution |
Shares |
The entertainment firm has recently pulled the plug on a bid, but its strong American film and merchandise business could push shares up to the 200p mark within a year. |
165p
208p/140p |
Hyder Consulting (HYC)
Consulting services |
The Times |
Business in Saudi Arabia, Australia and Britain is looking up for this engineering consultant. On a p/e of just over nine, the shares look cheaper than higher-profile rivals. |
410p
447p/299p |
Icap (IAP)
Financial services |
The Independent |
This broker should benefit from over-the-counter derivatives deals being forced onto exchanges by regulators. Its p/e of 10.3 is slightly higher than rivals, but is well deserved. |
389.5p
548p/311p |
Kenmare Resources (KMR)
Mining |
The Daily Telegraph |
The titanium miner’s share price has jumped 201% since September 2010, but there’s further to go, with production at its Moma operation set to increase 50% this year. |
56p
62p/30p |
Morgan Crucible (MGCR)
High-tech materials |
The Daily Telegraph |
With its best performance in its 155-year history in 2011, this high-tech materials group has increased sales to China and India. Get in on a p/e of 11. |
354p
365p/220p |
Ophir Energy (OPHR)
Oil & gas |
Shares |
This oil explorer has momentum as it prepares to exploit its acreage in Equatorial Guinea in April. A joint venture with BG Group is expected to find 2.2 trillion cubic feet of gas. Buy. |
368p
388p/178p |
Quindell (QPP)
Aim |
The Times |
This e-services firm is looking to provide a one-stop shop to handle claims for car insurers. This could be a chance to get in on something big – although it’s one for the brave. |
8p
8p/2p |
Restaurant Group (RTN)
Travel & leisure |
Investors Chronicle |
Buy this restaurant chain owner before full-year results next month as strong returns and cash flow are boosting growth. Its dividend has risen an average 11% over five years. |
304p
335p/238p |
Restore (RST)
Support services |
Shares |
The recent purchase of British office relocation firm Harrow Green hasn’t been priced into this support services firm. This should enhance earnings rapidly. Buy now. |
78p
83p/32p |
Sierra Rutile (SRX)
Aim |
The Mail on Sunday |
Long-term high prices for the mineral rutile are good news for this miner, with production set to rise from 80,000 to 130,000 tons by 2014. It’s risky, but still worth a punt for the bold. |
63p
70p/9p |
Spirit Pub Company (SPRT)
Retail/restaurants |
Shares |
This pub chain has recovered from a wobbly 2011 and expects a £52.8m pre-tax profit against a £108m loss last year. On a p/e of 9.6, there will be decent upside for the shares. |
57p
58p/33p |
Town Centre Securities (TCS)
Real estate |
Investors Chronicle |
With rental income for the year ahead looking stable, this real-estate owner looks great value. The shares trade at a 40% discount to net asset value and yield close to 7%. |
160p
203p/130p |
Whitbread (WTB)
Hotels |
The Times |
Premier Inn chain owner Whitbread will benefit from rival Travelodge’s refinancing problems. Investors should “book in for an extended stay”. |
1,716p
1,864p/1,344p |
XP Power (XPP)
Electric distribution |
The Times |
Moving production in-house should enhance margins for this electrical equipment manufacturer. The price looks too cheap at ten-times earnings. It’s a longer-term buy. |
1,069.5p
1,975p/770p |
| Sell |
|---|
| Company | Publication | Reason | Price tipped |
|---|
Aquarius Platinum (AQP)
Mining |
Shares |
The loss-making platinum miner looks vulnerable to safety-related stoppages and rising power costs. Platinum prices could drop after an end to rival Impala’s industrial dispute. |
146p
412p/133p |
Hampson Industries (HAMP)
Aerospace |
The Daily Telegraph |
The shares rose 80% in January on hopes of a turnaround for this aerospace engineer, but a setback in the firm’s largest tooling order could affect 2012 sales and profits. |
4p
38p/2.6p |
ITV (ITV)
Media |
The Independent |
On a p/e of just under 11, the share price of this TV broadcaster seems undemanding. Yet the firm is over-reliant on fickle advertising revenue and lacks a pay platform. Avoid it. |
77p
95p/50p |
* 52-week high/low |