| Buy |
| Company |
Publication |
Reason |
Price tipped |
African Barrick Gold (ABG)
Natural resources |
The Daily Telegraph |
Shares in the mining company have plunged after a Chinese suitor walked away. But with gold prices likely to soar this year and the dividend still in place, they’re a speculative buy. |
352p
535p/301p* |
Anglo American (AAL)
Natural resources |
The Daily Telegraph |
The mining giant’s shares have suffered greatly from operational difficulties. Yet Anglo’s upcoming platinum business review could unlock value and it could be a takeover target. Buy. |
2,020p
2,927p/1,662.5p |
Aviva (AV)
Life insurance |
The Times |
Analysts are split over whether Aviva’s new chief executive will cut the dividend in March. However, it’s likely the payment is safe, which would be good news for the share price. |
381.5p
390p/251p |
Babcock (BAB)
Engineering |
The Daily Telegraph |
Babcock has bought a gas-handling business from Weir Group. The engineering firm also boasts a strong order book and should generate solid organic growth in the second half. |
995.5p
1,011p/713.5p |
Base Resources (BSE)
Aim |
Shares |
The recent sell-off in the Kenya-focused miner’s Australian-listed shares means its January Aim-listing is a buying opportunity. Its Kwale project alone could double the share price. |
17p
23p/16p |
British Land (BLND)
Real estate |
Investors Chronicle |
British Land is the most profitable of the real-estate investment trusts. Rents in Britain have held their value and the chunky yield also has its attractions. |
577p
579p/455p |
Cineworld (CINE)
Travel & leisure |
The Daily Telegraph |
The cinema operator is still an attractive option for those seeking both income and capital growth. The acquisition of Picturehouse is earnings-enhancing and the 4.7% yield tempting. |
267p
275p/198p |
GlaxoSmithKline (GSK)
Pharmaceuticals |
Shares |
It’s been a tough year for GSK following mis-selling scandals, but possible new product approvals due this year could boost earnings forecasts. Buy for the 5.7% dividend yield. |
1,375p
1,515p/1,314p |
Interserve (IRV)
Support services |
The Times |
Interserve is reinvesting money from the sale of its private finance initiative assets, buying an Omani oilfield maintenance provider. It’s a buy on a price/earnings ratio of eight for 2013. |
429.5p
439p/268.5p |
Lupus Capital (LUP)
Aim |
Investors Chronicle |
Lupus makes door and window fittings and, while trading is tough in Britain and Europe, it should benefit from the improving US housing market. Profits are up and the dividend is back. |
160p
175p/110p |
Magnolia Petroleum (MAGP)
Aim |
Shares |
Snap up some shares in the American-focused oil explorer before drilling results from its first operated well in Oklahoma are due out. Good results should boost the share price. Buy. |
3.5p
5p/1p |
Melrose (MRO)
Engineering |
The Times |
Shares in the turnaround specialist have recovered from the November profit warning but still lag the FTSE. On 14 times earnings, they look good value and could benefit from any re-rating. |
241p
261.5p/198p |
Microfocus (MCRO)
Software |
Shares |
The software modernisation specialist is set to return 150p per share to investors via regular and special dividends in the next two years, while the share price could hit 700p in 2013. Buy. |
576.5p
616p/416p |
Persimmon (PSN)
Construction |
The Daily Telegraph |
Trading at the British housebuilder is robust, thanks to sales of houses built on land acquired cheaply following the credit crunch. The firm also plans a return of capital to shareholders. |
835.5p
879.5p/510p |
Polo Resources (POL)
Aim |
Investors Chronicle |
Shares in the natural-resources investment specialist trade far below book value, assigning virtually no value to its main investments. Yet it has a history of returning cash to investors. |
2.5p
4p/2p |
Rexam (REX)
General industrials |
Investors Chronicle |
Drinks can producer Rexam is about to return £395m to shareholders, or 45p a share – the proceeds of the sale of its personal care division. The shares remain a buy. |
448p
465p/369.5p |
Rolls Royce (RR)
Aerospace & defence |
The Daily Telegraph |
The turbine manufacturer has won a $52m deal with American Marine Corp to repair engines. Although a Serious Fraud Office investigation looms, the shares are a buy on a p/e of 14.2. |
918p
922p/713.5p |
Smiths Group (SMIN)
General industrials |
Investors Chronicle |
Interest is growing in a potential break-up of the industrial specialist with its eclectic mix of divisions. Invensys’ example shows the pension fund deficit is no longer an obstacle. Buy. |
1,205p
1,232p/925p |
William Sinclair (SNCL)
Aim |
Shares |
A recovery in profits due this year should boost shares in the horticulture specialist. Prices for peat, which the firm supplies, are expected to rise in 2013 due to shortages in Europe. |
114p
196p/114p |
XP Power (XPP)
Support services |
The Times |
Revenues at the power control equipment maker fell by 9% last year, but it continues to throw off plenty of cash and now produces its own components in-house. It’s on a p/e of ten. |
1,035p
1,283p/830p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Anglo American (AAL)
Natural resources |
Investors Chronicle |
The good news is that Anglo has a new chief executive. The bad news is that he faces many problems, such as the fractious South African mining industry and platinum oversupply. Sell. |
2,015p
2,927p/1,662.5p |
Lavendon (LVD)
Support services |
Shares |
Shares in the construction equipment rental group have had a strong run since February last year. But, with the firm seeing a slowdown in Britain and Germany, it’s time to take profits. |
146p
151p/88p |
Pace (PIC)
Technology |
The Times |
The set-top box maker was the second-best performer in the FTSE 350 last year. Strong cash flow means Pace should be debt-free by the year-end. But some might like to take profits. |
208p
208.5p/68p |
Spirit Pub Company (SPRT)
Travel & leisure |
The Sunday Times |
The pub firm spun out from Punch Taverns in 2011 remains a work in progress. Christmas trading was mostly slow and free cash flow remains low due to debt payments. Sell. |
66p
68.5p/43p |
William Sinclair (SNCL)
Aim |
Investors Chronicle |
Record rainfall in 2012 meant the peat supplier was unable to harvest much peat and had to buy it in, making a full-year loss. New chief executive Peter Rush has a tough job ahead. Sell. |
127p
196p/114p |
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* 52-week high/low |