| Buy |
| Company |
Publication |
Reason |
Price tipped |
Atico (Toronto:ATY)
Natural resources |
Investors Chronicle |
Shares in the Canadian mining minnow could rise in value ten-fold or more if its Colombian gold exploration project pays off. It recently found a potentially huge deposit. It’s high risk. |
96c
113c/40c* |
Capita (CPI)
Support services |
The Independent |
Although government spending is falling, the trend to outsource remains strong and should continue to benefit Capita. A forward price/earnings (p/e) ratio of 14.7 doesn’t look excessive. |
845p
858p/600p |
CSR (CSR)
Technology |
The Times |
Chipmaker CSR has cleverly restructured, enabling it to focus on more exciting products. With its strong cash flow, further share buyback programmes look likely. Buy on weakness. |
446p
449p/194p |
BTG (BTG)
Biotech & pharma |
Shares |
BTG’s varicose vein product Varisolve is awaiting approval from the US regulatory authorities and a decision is due in the second quarter. Meanwhile, the rest of the pipeline looks healthy. |
323p
426p/297p |
Elementis (ELM)
Speciality chemicals |
The Times |
Elementis has snapped up US firm Hi-Mar for $33m. The British chemicals firm is highly cash generative and plans to pay a substantial special dividend. It’s attractive for the longer term. |
234p
245p/155p |
G4S (GFS)
Support services |
The Independent |
G4S has won its first UK government contract since the Olympics fiasco, an extension to its contract for running the Medway Secure Training Centre. It’s a speculative buy on a p/e of 11. |
286p
295p/237p |
Iomart (IOM)
Aim |
Shares |
Shares in the Glasgow IT outsourcing specialist should be set for a re-rating. The shares have been hit by the poor performance of a rival, but organic growth at the firm could hit 20%. |
230p
245p/117p |
Ithaca Energy (IAE)
Aim |
Shares |
Activist investors are lobbying for the North Sea oil company to be sold off. Its valuation is attractive and broker Jefferies says its cash and discoveries are worth 170p a share. |
133p
212p/91p |
JD Sports Fashion (JD)
General retailer |
The Independent |
JD Sports enjoyed record Christmas trading in Britain and Ireland this year. Black’s Leisure has proved troublesome but things are improving. It’s good value on a p/e of eight for 2013. |
800p
850p/600p |
JSJS Designs (JSJS)
Aim |
Shares |
The tiny home automation specialist, with a £2.2m market cap, has signed a major deal with Amazon to sell its products. Losses are down significantly and profits could be on the horizon. |
0.5p
1.25p/0.5p |
Lok‘nStore (LOK)
Aim |
Shares |
An early move to factor a VAT change into its pricing has benefited the self-storage provider over its rivals. Revenues are up 2.2% and new openings should boost growth. Buy. |
117p
122p/99p |
Mediterranean Oil & Gas (MOG)
Aim |
Shares |
The Italian elections could lead to a brighter future for the Italy-focused oil explorer. A Mario Monti coalition could mean a more favourable environment for oil explorers generally. Buy. |
10p
16p/5p |
Mondi (MNDI)
Paper & packaging |
The Times |
The Anglo American spin-off has a dual listing in London and Johannesburg. Seeking acquisitions, it’s cut its exposure to paper. The shares could benefit if it enters the FTSE 100. |
855p
862p/494.2p |
Paragon (PAG)
Financial services |
The Mail on Sunday |
Shares in the buy-to-let lender are up 50% since last year due to the rental boom, but are still worth buying. Its recent retail bond issue raised £60m. It’s a buy for the risk-tolerant investor. |
313p
321p/151p |
Rolls-Royce (RR)
Aerospace & defence |
Investors Chronicle |
Rolls-Royce posted an impressive set of full-year figures, making underlying profits of £1.4bn. Margins are up and the £60bn order book should more than make up for military budget cuts. |
1,017p
1,017p/758p |
Speedy Hire (SDY)
Equipment hire |
Shares |
Strong trading and margin improvements have helped the plant-hire firm’s shares almost double since September. Expect earnings upgrades after the fourth-quarter results in April. |
44p
46p/22p |
STV (STVG)
Media |
Investors Chronicle |
The Scottish broadcaster’s net debt is down and it’s won a recommendation for a ten-year licence renewal to run Channel 3. It’s a speculative buy on a p/e of just five. |
146p
146p/82p |
Surgical Innovations (SUN)
Aim |
Investors Chronicle |
The keyhole surgery instrument maker’s results will miss forecasts after a regulatory delay hit sales. But otherwise the firm is performing well and extra capacity is coming online. Buy. |
6p
12p/6p |
Triumph Group (NYSE:TGI)
Aerospace & defence |
Investors Chronicle |
The US aircraft-parts manufacturer has lucrative contracts with Boeing and Airbus and its acquisition policy has paid off, boosting profits. Third-quarter results were solid. Buy. |
$73.40
$73.70/$53.50 |
William Hill (WMH)
Travel & leisure |
The Times |
Betting provider William Hill is due to complete its purchase of Sportingbet and the outstanding stake in its online business. Broker Numis expects both deals to be earnings-enhancing. |
401p
411p/221p |
| Sell |
| Company |
Publication |
Reason |
Price tipped |
Baobab Resources (BAO)
Aim |
Investors Chronicle |
Shares in the Mozambique-focused mining company have more than doubled since they were tipped in 2011. While progress is ongoing, it’s time to sell and buy in again at a lower price. |
29p
36p/6p |
Rexam (REX)
General industrials |
The Daily Telegraph |
Shares in the beverage can maker jumped by 5% following the results, leaving them trading on a toppy-looking p/e of 11.7 for 2013. Despite the yield, the shares look too expensive. Avoid. |
509p
517p/392p |
Travis Perkins (TPK)
General retailers |
The Daily Telegraph |
Travis Perkins is well run and its shares have enjoyed a good run recently, but with more uncertainty on the horizon for the construction industry, they are best avoided for now. Sell. |
1,271p
1,311p/902p |
UBM (UBM)
Media |
The Daily Telegraph |
The market has marked down UBM’s shares after it secured a much lower price for its Delta data division than expected. Moody’s has also cut its rating on UBM’s unsecured loans. Sell. |
774p
795p/509p |
JD Wetherspoon (JDW)
Travel & leisure |
Investors Chronicle |
This will be another tough year for the pub sector. Profit margins are already down at JD Wetherspoon and could slump to a 20-year low this year, according to one broker. Sell. |
510p
554p/367p |
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* 52-week high/low |