| Buy |
| Company |
Publication |
Reason |
Price tipped |
3i Infrastructure fund (3in)
Investment companies |
The Daily Telegraph |
3i fund has seen its Indian assets fall in value, but as a whole the net asset value (NAV) rose by 3% to 121.6p, showing the benefit of diversification. The prospective yield is 4.7%. |
126.25p
129p/116.5p* |
Aureus Mining (AUE)
Aim |
Investors Chronicle |
News that the gold miner is raising £50m to fund its New Liberty project in Liberia has hit the share price. However, this is a good project backed by a decent management team. Buy. |
50.5p
91.5p/45.75p |
Avingtrans (AVG)
Aim |
Shares |
Precision engineering group Avingtrans services an international customer base and so is relatively resilient. Having sold-off its industrial division, it boasts a healthy net cash position. |
97.5p
97.5p/48.5p |
Aviva (AV)
Insurance |
The Daily Telegraph |
Shares in Aviva have underperformed but, with a new chief executive soon to be appointed and a restructuring exercise due, the shares are likely to see a re-rating. Buy for income. |
325p
385p/251p |
Babcock (BAB)
Support services |
The Times |
Babcock is benefiting from government outsourcing, with significant contract wins in the second half of last year and a £13bn order pipeline. On a p/e of 14, the prospects look good. |
958.5p
996.5p/660p |
BG Group (BG)
Oil & gas |
The Times |
The 18% dip in BG’s share price looks unjustified. The gas giant may be missing its short-term targets, but is sticking to its long-term growth ones. A buying opportunity for the long term. |
1,052p
1,554p/1,039p |
Circle Oil (COP)
Aim |
Shares |
Shares in the North African oil explorer trade at a discount to its oil-producing assets, which provides a ‘free play’ on its campaign in Tunisia. Buy ahead of drilling results in December. |
19p
27p/16p |
Fenner (FENR)
Industrial engineering |
The Times |
A study by broker Panmure Gordon shows that Fenner is on the lowest rating among its peers, which is unfair given two-thirds of its orders come from repeat business. Good value. |
358.25p
505p/327.5p |
Hill & Smith (HILS)
Industrial engineering |
Shares |
The infrastructure specialist saw first-half profits triple thanks to a productivity drive to boost margins. The firm should benefit from increased spending on infrastructure in the US. |
372.25p
390p/234p |
JD Wetherspoon (JDW)
Pubs |
The Times |
Wetherspoon’s shares have performed well, rising 40% since May despite tough market conditions. Like-for-like sales rose 7.1% in the first quarter. A better bet than most of its peers. |
534p
538.5p/367p |
PPHE Hotel Group (PPH)
Real estate |
Investors Chronicle |
Despite question marks over the general Olympics effect, the hotelier behind the Park Plaza brand benefited from the games. Yet its shares trade at half book value on a p/e of just 7. Buy. |
228p
250p/200p |
Randgold Resources (RRS)
Gold mining |
The Daily Telegraph |
The third-quarter update from Randgold was disappointing, but this often happens in mining. Current economic trends remain positive for the gold price and the shares are a buy. |
6,950p
7,875p/4,480p |
Sainsbury J (SBRY)
General retailers |
The Mail on Sunday |
Despite perceptions that it is more expensive than its rivals, Sainsbury’s is performing better than Tesco and Morrisons and its loyalty scheme is driving up sales. A solid long-term bet. |
348p
362.25p/278.5p |
Shanks (SKS)
Support services |
The Daily Telegraph |
Shares in the waste recycler have trodden water since the profit warning in September. But they look undervalued considering the £20m-a-year cost-saving exercise now underway. |
83p
115.75p/72.25p |
Staffline (STAF)
Aim |
The Mail on Sunday |
Staffline, which supplies temporary staff, is benefiting as more companies use temps during the financial crisis. With a market share of just 5%, there is plenty of room for growth. |
239.5p
260.5p/162.5p |
Taliesin Property Fund (TPF)
Aim |
Investors Chronicle |
This European real-estate fund is underpinned by its canny investment in Berlin housing back in 2007. Its net asset value has risen, but the shares still trade at a 12% discount. Buy. |
1,085p
1,140p/1,005p |
Tate & Lyle (TATE)
Food producers |
The Independent |
Half-year results were hit by the cost of reopening Tate & Lyle’s US Splenda factory. But margins were solid and the growth potential in many of its key markets is clear. Buy on weakness. |
730p
757.5p/627.5p |
Telecity (TCY)
Technology |
The Times |
The data-centre group has acquired two operators in Helsinki, establishing a market-leading position for Russian internet traffic. The share price fall looks overdone. Buy for the long term. |
835p
963.5p/566.5p |
Walker Greenbank (WGB)
Aim |
Shares |
The luxury furnishings specialist is a British success story, with customers all over the world. Net debt levels are falling and a p/e of just 6.8 looks mean given its potential for growth. |
72p
76.25p/45.5p |
Weir (WEIR)
Industrial engineering |
Investors Chronicle |
Pump manufacturer Weir is on course to generate double-digit profit growth in 2012, despite a tough year at its US oil and gas side. It should also benefit from a recovery in US gas prices. |
1,838p
2,243p/1,352p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Amlin (AML)
Non-life insurance |
Investors Chronicle |
Amlin is likely to be hit hard by losses relating to Hurricane Sandy. The non-life insurer is more exposed than its peers to catastrophes and the shares look highly rated. Sell. |
372p
408p/282p |
Anglo American (AAL)
Mining |
Investors Chronicle |
Shares in the mining giant have ticked up following a change in management, but the firm remains overly exposed to risky South Africa and continuing industrial disputes there. Sell. |
1,935p
2,927p/1,720p |
Burberry (BRBY)
Personal goods |
Investors Chronicle |
Growth at Burberry has waned considerably following the profits warning in September and wholesale sales will be flat in the second half. Trading on 19 times earnings, it’s time to sell. |
1,259p
1,605p/998p |
Flybe (FLYB)
Travel & leisure |
Shares |
Conditions in the regional and domestic airline market remain tough for the budget operator, with demand for UK/European business flights down. Net debt also looks hefty at £75m. |
51p
80p/48p |
Renold (RNO)
Engineering |
Shares |
Last month the transmission specialist warned on profits for the second time. The company is being hit by weak sales in Europe and destocking. Sell ahead of the 20 November interims. |
19.5p
41p/18p |
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* 52-week high/low |