| Buy |
| Company |
Publication |
Reason |
Price tipped |
Aviva (AV)
Insurance |
The Sunday Telegraph |
Poor performance has seen CEO Andrew Moss step down, but the fundamentals for this insurance giant seem solid. The shares, down 60% since July 2007, now look undervalued. |
448p/251p*
273p |
Barratt Developments (BDEV)
Home builders |
Investors Chronicle |
The house builder posted its best spring selling season for five years but is still cheap at a 34% discount to net tangible assets. As prices and margins improve, the shares should catch up. |
153p/65p
134p |
Brammer (BRAM)
Distribution/wholesale |
Investors Chronicle |
The Europe-focused industrial parts distributor has fallen on eurozone woes but could bounce if further cheap credit flows as a result. A rise to April’s 384p high would mean 51% profits. |
384p/215p
253p |
Chariot Oil & Gas (CHAR)
Aim |
Shares |
A 36% fall since 14 May is a chance to buy this oil explorer ahead of drilling at its Nimrod well. It is targeting 4.9 billion barrels, potentially worth £14.39 per share. It’s a risky buy. |
208p/67p
95p |
Cohort (CHRT)
Aerospace/defence |
The Times |
The military tech and advisory firm has a £14m cash pile to increase shareholder value. On a price/earnings (p/e) ratio of under eight, the shares look worth buying for the longer term. |
125p/87p
108p |
Cluff Gold (CLF)
Aim |
Shares |
Positive drill results for this £110m market cap gold miner’s Ivory Coast Yaoure project bode well for resource upgrades later this year, which should boost the share price. Buy. |
115p/62p
66p |
Daisy Group (DAY)
Telecommunications |
Shares |
The B2B telecoms firm has £60m to pick up unwanted assets from Vodafone’s purchase of Cable & Wireless, which could boost its growth profile. This isn’t reflected in a 2013 p/e of 6.2. |
130p/82p
88p |
Dart Group (DTG)
Aim |
Investors Chronicle |
Despite tough conditions, the airline and package holiday provider has grown passenger numbers and bookings are encouraging. A drop in oil prices should also help. The p/e is five. |
95p/57p
69p |
Gem Diamonds (GEMD)
Mining |
Shares |
The diamond miner fell 35% in the three months to 22 June, but the stock looks to have bottomed out. This offers a chance to get in on the long-term diamond demand story. |
317p/173p
194p |
Kier Group (KIE)
Engineering/construction |
The Times |
The engineer has £140m in the bank and has secured 85% of 2013’s forecast revenues, with more contracts up for grabs. The shares, on a p/e of just over eight, may be due a bounce. |
1,489p/1,034p
1,225p |
Micro Focus Int’l (MCRO)
Software |
Investors Chronicle |
The computer systems specialist is raising its dividend distribution ratio from 40% to 50% and could return 37% of its market value over the next few years. Buy on a forecast p/e of ten. |
544p/230p
514p |
MP Evans (MPE)
Aim |
Shares |
This palm oil and cattle firm is benefiting from a 93% year-on-year increase in oil-palm crops and strong prices held up by demand in India and China. Buy on a December 2012 p/e of 13.3. |
525p/370p
479p |
Norcros (NXR)
Building materials |
Investors Chronicle |
The tiles, shower and adhesive supplier has stolen business from European rivals and won useful work with Waitrose and the Olympic Village. A forward p/e of six looks too cheap. |
15p/9.25p
12p |
Quindell Portfolio (QPP)
Aim |
Shares |
The integrated insurance software firm’s money-saving model has won work with Ageas and RSA and it is bidding for £500m of further business. A 2012 p/e of 5.6 looks a good entry point. |
8.5p/2p
5.5p |
RSA Insurance (RSA)
Insurance |
Shares |
The insurer avoided big losses last year and is benefiting from rising premiums and greater volumes. With the business enjoying an uptick, buy ahead of 2 August interims. |
140p/97p
104p |
Sage (SGE)
Software |
Shares |
The purchase of a 75% stake in Brazilian peer Folhamatic opens up a major new arena and could make this accountancy software firm a takeover target. It’s attractive on a p/e of 12.4. |
313p/225p
266p |
Segro (SGRO)
REITS |
The Times |
The property owner is selling £1.4bn of less attractive assets and has rearranged its £2.3bn debt pile. Management has promised to protect the yield of close to 7%. Buy and wait. |
322p/194p
216p |
Stagecoach (SGC)
Transportation |
The Daily Telegraph |
Despite a 44% fall in operating profit at its UK rail division, this bus and train operator is riding out the recession well. London, regional and US bus services look strong. Buy on a p/e of ten. |
291p/207p
264p |
Unibail-Rodamco (FR:UL)
REITS |
Investors Chronicle |
The French property investor’s low borrowing (3.6%) and administration costs have helped make it Europe’s top performing REIT. Buy on a 2% premium to net asset value. |
€163/€123
€140 |
Victoria (VCP)
Textiles |
Investors Chronicle |
Shares in the carpet firm fell on poor Australian sales in the half-year results. But a tie-up with John Lewis helped raise British sales 15.4% and the shares trade well below net asset value. |
385p/213p
225p |
Wynnstay (WYN)
Aim |
Investors Chronicle |
The animal feed producer has successfully integrated a number of acquisitions and a move into east England should bring further gains. A forecast p/e of 11 looks modest. Buy. |
408p/328p
385p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Barclays (BARC)
Banks |
The Independent |
While the bank’s shares look cheap at 50% of estimated book value, the furore around the £290m Libor fix will keep pressure on the stock. Financially – and ethically – it’s a sell. |
266p/134p
166p |
Carpetright (CPR)
Retail |
The Daily Telegraph |
This carpet seller’s annual profits dropped 76% to £4m – the lowest level since 1992. What’s more, the shares are “as expensive as a Persian rug” on a forward p/e of 72 and no dividend. |
753p/375p
686p |
Idox (IDOX)
Aim |
This is Money |
The software firm raised half-year profits 54% and the shares are up almost 400% since April 2008. Shareholders should bank 50%-65% profits; new investors could buy on weakness. |
41p/21p
40p |
Ladbrokes (LAD)
Entertainment |
The Daily Telegraph |
Delays to this bookie’s new website will contribute to a now expected 50% fall in half-year digital profits, leaving an online gap with larger rival William Hill. Avoid on a p/e of ten. |
183p/113p
152p |
Wm Morrison (MRW)
Food |
The Daily Telegraph |
The supermarket is losing market share and will lose highly respected financial director Richard Pennycook next year. A yield of 4.1% is less than rivals on a p/e of ten. Sell. |
340p/261p
265p |
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* 52-week high/low |