| Buy |
| Company |
Publication |
Reason |
Price tipped |
4imprint Group (FOUR)
Commercial services |
Investors Chronicle |
The £24m sale of Brand Addition has helped the promotional products firm boost its business in the $22bn North American market. A p/e ratio of 13 looks good value. |
313p/200p
281p |
BSkyB (BSY)
Media |
Investors Chronicle |
News Corp’s woes and the rising price of English football rights have dogged the broad-caster’s shares. But it has strong cash flows and is a defensive growth play on a p/e of 13. |
775p/614p
720p |
DDD Group (DDD)
Aim |
Shares |
The 3D conversion specialist should benefit from the growth in products using 3D functions. Broker Canaccord Genuity thinks the shares could double inside 12 months. |
35p/21p
27p |
Diageo (DGE)
Beverages |
Shares |
Strong sales momentum and acquisitions in fast-growing Brazil, Turkey and Vietnam should boost this drinks giant ahead of 23 August finals. A punchy p/e of 17 is well deserved. |
1,760p/1,082p
1,737p |
Drax (DRX)
Holding companies div. |
The Times |
Clarification over subsidies for this firm to convert its coal-fired plant to biomass should have boosted the shares. They are down 8% from before the announcement. A risky punt. |
589p/390p
475p |
Elementis (ELM)
Chemicals |
The Times |
High margins mean this chemicals specialist should have $50m or more in cash by the end of the year, half of which will be returned to shareholders. A long-term buy on a p/e of 14. |
215p/105p
210p |
Fiberweb (FWEB)
Apparel |
The Times |
The materials specialist is benefiting from a move to higher-margin areas, and could have £25m cash by year’s end to invest, or return to shareholders. Tuck away on a p/e of 13. |
72p/39p
70p |
GKN (GKN)
Auto parts & equipment |
The Daily Telegraph |
The engineer is exposed to long-term growth in automotive (global vehicle numbers are set to rise 22% by 2017), aerospace and agriculture markets. Buy on a p/e of 8.5 and a yield of 3.4%. |
237p/153p
211p |
Halfords (HFD)
Retail |
Shares |
The retailer saw a 7.5% like-for-like sales decline in the first quarter, but should benefit from a new CEO and investment in auto maintenance. A recovery play on a March 2013 p/e of 8.3. |
352p/187p
204p |
Ideagen (IDEA)
Aim |
Shares |
The software firm is benefiting from higher levels of red tape in regulation-heavy industries such as defence and food. The shares could top 25p within a year. Buy on a p/e of ten. |
17p/9p
16p |
Inchcape (INCH)
Distribution/wholesale |
The Daily Telegraph |
Despite fears of slowing emerging markets, the long-term growth trend of vehicle sales in Asia should boost the luxury car dealership. A p/e of 10 is not expensive; the yield is 3.3%. |
427p/261p
379p |
Judges Scientific (JDG)
Electronics |
The Mail on Sunday |
Despite soaring 74% since November, the scientific instruments specialist still looks relatively cheap compared to rivals. Expect a 21% rise in profits this year. Buy on weakness. |
765p/393p
745p |
NewRiver Retail (NRR)
REITS |
Investors Chronicle |
Shares in the high-street mini-malls shop owner have dropped since floating in 2009 and now look a bargain at a 31% discount to net asset value, and offering a yield of 8.9%. |
250p/177p
182p |
Novae Group (NVA)
Insurance |
Investors Chronicle |
A 12% discount to brokers’ estimates for year-end net tangible assets looks too cheap as the Lloyd’s insurer returned a solid half-year combined ratio of 93% and return on equity of 14.5%. |
381p/281p
364p |
Petra Diamonds (PDL)
Mining |
The Daily Telegraph |
Despite price pressures, the diamond miner’s full-year production rose by 98% to 2.2 million carats and revenues rose 44%. The shares are up 8% since January; the 2013 p/e is ten. |
189p/93p
120p |
Provexis (PXS)
Food |
The Mail on Sunday |
The sports nutrition and health food firm’s products are used by Olympic athletes and its blood-clot-reducing Fruitflow has huge potential. Get in early as profits start to flow. |
3p/1.25p
1.5p |
Renold (RNO)
Machinery diversified |
The Times |
A 22% share price fall on a profit warning should be seen as a temporary blip for this chain-and-transmission gear maker as the long-term prospects look solid. A speculative buy. |
41p/21p
23p |
Tower Resources (TRP)
Aim |
Shares |
The oil explorer’s 30% stake in offshore Namibian assets owned with Spain’s Repsol could benefit from good news from Chariot Oil & Gas and BP in a nearby block due next month. Buy. |
5.25p/2.25p
3.25p |
TT electronics (TTG)
Electronics |
The Times |
The electronics maker has cut away non-core business, reduced costs and upped exposure to fast-growing China and India. A fall from above £2 in March is a chance to buy on a p/e of nine. |
205p/117p
153p |
Xaar (XAR)
Computers |
Shares |
Interims set for 16 August should allay worries over this printing tech manufacturer’s P3 product line and could lead to forecast upgrades and a return to March highs of 275p. Buy. |
280p/185p
228p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
HMV (HMV)
Retail |
Shares |
The troubled high street retailer’s earnings targets have been hit by drab weather and poor consumer sentiment. Sell ahead of September’s AGM as there is potential for more bad news. |
7.5p/2.25p
3.5p |
Int’l Con. Airlines (IAG)
Airlines |
Investors Chronicle |
Spain’s debt crisis and competition from low-cost carriers saw this airline group’s Iberia subsidiary record a £209m operating loss for the half year. Sell as Spain’s plight is set to continue. |
203p/131p
151p |
Latchways (LTC)
Building materials |
Investors Chronicle |
Slowing sales in the US (10% of sales) and exposure to the eurozone (33% of sales) will hit the safety harness firm’s margins. A p/e of 14 looks high given the construction downturn. Sell. |
1,190p/935p
970p |
Reckitt Benckiser (RB)
Household products |
The Daily Telegraph |
Despite plans to up emerging-market sales from 42% to 50% over five years, the group is still overly exposed to the difficult US and European markets. Sell on a 2012 p/e of 14.4. |
3,688p/2,960p
3,536p |
Yule Catto (YULC)
Chemicals |
Shares |
Weakness in Europe and North America has seen this chemicals firm fall 43% since March. Sell ahead of 28 August interims as price pressures and poor demand in Asia look set to stay. |
257p/126p
143p |
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* 52-week high/low |