| Buy |
| Company |
Publication |
Reason |
Price tipped |
Aberdeen Asset Management (ADN)
Fund management |
The Daily Telegraph |
Institutional investors pulled out £100m from the asset manager over the summer. But the shares have risen 83% in the past 12 months and yield 3.1% on a 2013 rating of 14.6. Buy. |
313p/165.5p*
308p |
Assura (AGR)
Real estate |
Investors Chronicle |
GP landlord Assura is lowly rated compared to peers because of its poor track record, but the shares deserve a re-rating. Its markets are stable and there’s scope for dividend growth here. |
41p/27p
32.5p |
Aureus Mining (AUE)
Aim |
Investors Chronicle |
Aureus’ New Liberty gold mining project is high grade and its deposits are large. American monetary stimulus could boost the shares and the company is also a takeover target. |
92p/46p
69.5p |
Booker (BOK)
Food and drug retailers |
Investors Chronicle |
A recent trading update from the cash-and-carry operator showed solid growth. If the planned turnaround at Makro is successful, investors could receive a generous special dividend. Buy. |
98.25p/69.4p
93p |
Fitbug (FITB)
Aim |
Shares |
The online well-being services provider is well placed to profit from growing demand from US insurers. Possible deals with American healthcare groups could trigger earnings upgrades. |
4.5p/1.257p
1.48p |
Diageo (DGE)
Beverages |
The Daily Telegraph |
A potential deal for Diageo to buy a stake in Indian group United Spirits makes good strategic sense. The Indian spirits market is the third biggest after China and Russia. Buy. |
1,770.5p/1,193p
1744p |
Genel (GENL)
Oil and gas producers |
Investors Chronicle |
Exploiting opportunities in Kurdistan is risky, but Genel looks well-placed. The dispute over production-share contracts should be resolved soon and, if so, this should boost the shares. |
1,020p/586p
761p |
Getech (GTC)
Aim |
Shares |
The geological data group is reaping the benefits of a change in its business mix and is set to reinstate the dividend in November. Earnings are now looking more stable. Expect upgrades. |
42.5p/19p
36.1p |
Hargreaves Services (HSP)
Resources |
The Daily Telegraph |
Hargreaves could have to close its Maltby Colliery, but the share-price fall looks overdone. The prospective dividend yield is 3.7%. Buy on a 2013 price-to-earnings (p/e) ratio of just 4.5. |
1,278p/530p
551p |
Hyder Consulting (HYC)
Infrastructure |
Shares |
Unlike some competitors, the infrastructure specialist is enjoying strong trading in the Middle East, especially in Qatar. It recently beat profit forecasts and could be a takeover target. |
430p/320p
400p |
| Kingfisher (KGF) General retailers |
The Times |
The DIY retailer’s prospects may be picking up as weaker competition leaves the market. Analysts forecast a strong improvement in profits. It’s a long-term punt on a p/e of 10.5. |
317p/232.7p 263.9p |
Mediterranean Oil & Gas (MOG)
Oil and gas explorers |
The Times |
Despite a spat with Leni Gas & Oil, development of MOG’s Malta assets is moving ahead. The Mediterranean could become important area for oil companies. It’s speculative but promising. |
14.25p/3.625p
13.125p |
MJ Gleeson (GLE)
Construction |
Investors Chronicle |
The housebuilder is recovering fast and is now debt-free. Its restructuring programme is also complete and land-bank sales could generate enough cash flow to reinstate the dividend. Buy. |
132p/96p
131p |
Petra Diamonds (PDL)
Mining |
The Daily Telegraph |
A 20% fall in the diamond price hit Petra hard, but full-year results were on track. Buy on the expectations of a diamond price recovery and the possibility of future dividend payments. |
188.5p/92.75p
118.1p |
Petroneft (PTR)
Aim |
Shares |
Shares in the Siberian oil producer could see a re-rating if the company can capitalise on the positive performance of its Arbuzovskoye 101 well. Buy ahead of an expected announcement. |
28.875p/5.625p
7.85p |
RPC Group (RPC)
General Industries |
The Daily Telegraph |
The packaging maker has increased profits by making innovative, lightweight products that save clients money. It’s decent value on a 2013 p/e of 9.76 and a 3.7% yield. Hold for now. |
447p/331.50p
427.50p |
Shanks (SKS)
Waste recycling |
The Daily Telegraph |
Shank’s shares fell 17% last week after the downturn hit trading at its solid waste division. However, the rest of the business remains robust, supported by environmental legislation. |
118.5p/73.25p
79p |
Spirent (SPT)
Technology |
The Times |
The telecoms testing specialist has sold its systems division for $64m and the proceeds will go to shareholders in the form of share buybacks. It’s a bet for the long term on a p/e of 16. |
176.3p/104.4p
160.5p |
S&U (SUS)
Financial services |
The Times |
The loan provider enjoys a lower level of impairments than most doorstep lenders and profits are benefiting from the financial crisis. A p/e of ten and a yield of over 5% look reasonable. |
895p/597.5p
861p |
Zetar (ZTR)
Aim |
Shares |
Buy shares in the confectionery specialist ahead of the November trading update. Positive trends, such as brand licensing deals, should boost the shares and lead to earnings upgrades. |
245p/167.5p
220p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Bumi (BUMI)
Resources |
The Daily Telegraph |
The coal producer’s lawyers are examining a $600m write-down at a subsidiary amid claims of financial irregularities. Around $400m of debt also needs to be refinanced. Avoid for now. |
941p/120p
156p |
HMV (HMV)
General retailers |
Shares |
New chief executive Trevor Moore faces an uphill struggle to turn around the ailing retailer, due to continuing poor sales and competition. Further earnings downgrades are likely. Sell. |
7.5p/2.25p
2.8p |
Hornby (HRN)
Consumer goods |
The Daily Telegraph |
Shares in the model railway maker fell almost a third last week due to weak Olympic sales and serious supply chain problems. Until these are resolved, the shares are best avoided. |
141.5p/48p
62.5p |
Mulberry (MUL)
Aim |
Shares |
It’s time to take profits in the luxury fashion brand, best known for its handbags. On a p/e of 23.8 for 2013, the rating is hefty and the retail environment is becoming choppier. Sell. |
2,500p/1,100p
1252p |
Ocado (OCDO)
Food and drug retailers |
Investors Chronicle |
The online grocer’s recent trading update was lacklustre, with gross sales still below analysts’ forecasts. With the economic picture still looking grim, the shares remain under pressure. |
134.1p/52.1p
66p |
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* 52-week high/low |