| Buy |
| Company |
Publication |
Reason |
Price tipped |
BowLeven (BLVN)
Oil and gas producers |
Shares |
The oil and gas explorer trades on a 60% discount to the value of its discovered reserves in Cameroon. The firm is now looking for partners to help it develop its offshore fields. Buy. |
136p/53.5p*
75.75p |
Carnival (CCL)
Travel and leisure |
The Times |
The cruise operator has been hit by the slowdown in consumer spending. Yet it’s managed to grow sales by lowering prices and investors will be looking for this to continue. |
2,369p/1,841p
2,284p |
Centaur Media (CAU)
Media |
Investors Chronicle |
The business publisher has struggled recently as advertising demand fell. But a focus on digital media is now boosting sales. It looks cheap on a 2013 price/earnings (p/e) ratio of seven. |
47p/27p
40.5p |
Drax Group (DRX)
Electricity |
The Times |
The coal-fired power plant operator has reinvented itself by burning cleaner biomass. With a free-standing station that produces 7% of Britain’s power, it is a likely takeover target. |
581.5p/442p
504p |
Entertainment One (ETO)
Media |
Investors Chronicle |
The film and TV distributor recently bought a Canadian rival and signed a flagship deal with US film studio Dreamworks. The shares are up 347% since November 2009, but are still a buy. |
208.5p/130p
172p |
Falkland Oil & Gas (FOGL)
Oil and gas producers |
Investors Chronicle |
Shares in the oil and gas explorer took a battering last week following disappointing drilling results. But the “speculative case for the shares remains intact”. |
102.75p/41.75p
74p |
Galliford Try (GFRD)
Construction |
Daily Mail |
The housing market may be subdued, but this builder has had an excellent year. Profits rose 80% to £63m and, thanks to its big development land bank, should hit £72m next year. |
714p/410p
700p |
G4S (GFS)
Support services |
The Daily Telegraph |
The security firm’s shares have suffered following its Olympics failure, but a new public sector contract has eased fears of a government blacklisting. It’s good value on a p/e of 11.7. |
292p/220p
267p |
GKN (GKN)
Automobiles and parts |
Investors Chronicle |
In recent years the car parts maker has increased its exposure to aerospace, which now brings in 40% of its profits. The purchase of Volvo’s aerospace division is a game-changer. |
242p/153p
228p |
Imperial Tobacco (IMT)
Tobacco |
The Times |
Due to tough anti-smoking laws being implemented around the globe, it’s been a difficult time for the tobacco and cigarette vendor. But its sales are solid and its 5% yield looks safe. |
2,595p/2,086p
2,336p |
Kier (KIE)
Construction |
Investors Chronicle |
The property developer and builder has a healthy £750m pipeline of new projects. A p/e of ten is not too demanding, while the 4.9% yield provides a useful income stream. Buy. |
1,489p/1,089p
1,356p |
Lookers (Look)
General retailers |
The Daily Telegraph |
Shares in the UK-focused car dealership dipped slightly last week as a major shareholder sold a large stake. However, with new car sales up 11%, other investors should pile in. Buy. |
73.5p/48p
99.75p |
Mondi (MNDI)
Paper and packaging |
Shares |
Higher containerboard prices (up by e50 per tonne in September alone) could mean earnings upgrades for this packaging manufacturer. Revenues could be lifted by 10% in 2013. Buy. |
653.5p/407.25p
616p |
NetPlay TV (NPT)
Media |
Shares |
The online and TV gambling channel is reaping the rewards of a big marketing push. New customer numbers are up 74%, while revenue rose by a third. The 3% yield is another plus. |
12.375p/8.5p
12p |
Ricardo (RCDO)
Support services |
The Times |
The engineer is benefiting from flagship contracts working on the McLaren F1 car and troop carriers for the US military. A 2013 p/e of 12 is “very reasonable for such a quality stock”. |
391p/304.5p
360p |
Software Radio Technology (SRT)
Technology |
Daily Mail |
So far the firm’s proprietary ship communication systems have struggled to sell, but new regulations should help boost annual sales to £10m from £6.2m. It’s a share for the brave. |
35p/19.25p
20.5p |
Supergroup (SGP)
Personal goods |
Shares |
The fashion retailer shrugged off growing pains to post a 20% rise in sales in the first quarter of the year. With European expansion starting to pay off, investors can expect more growth. |
1,072p/264.5p
632p |
United Utilities Group (UU)
Utilities |
The Times |
The water firm reassured investors with a steady earnings report and its performance in customer service surveys has improved. The dividend, pledged at inflation plus 2%, is a plus. |
730p/589p
730p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Dunelm (DNLM)
General retailers |
Investors Chronicle |
These are tough times for a retailer and shares in this homeware vendor look pricey, trading on a p/e of 16.5. That’s a big premium to the sector. Sell. |
685p/391p
644p |
Redhall (RHL)
Support services |
Investors Chronicle |
The engineer is struggling to win new business and even legacy contracts could come under pressure. Provisions for an ongoing legal dispute are also adding £2m to costs. Sell. |
112.5p/55p
64p |
Pace (PIC)
Technology |
Shares |
Pressure is building for the set-top box maker after it revealed that it failed to fulfill a contract with BT, while supply disruptions cost it £76.9m in the first half of 2012. Sell. |
180p/44p
159.5p |
Advanced Computer Software (ASW)
Software |
Shares |
The business software provider has performed strongly over the year. However, with the shares now trading on a p/e of 15.3, it now looks too pricey and it’s time to take profits. |
63.75p/38.25p
62.75p |
Apple (US: AAPL)
IT hardware |
The Daily Telegraph |
Apple is a great firm with a popular new product. But for British investors, it’s also a currency risk. The Federal Reserve seems determined to weaken the dollar, so avoid the shares for now. |
$702/$363
$700 |
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* 52-week high/low |