Sunday newspaper share tips

By This Is Money
Updated: 07:54 EDT, 8 April 2007

Each week, we round up the main share tips from the Sunday newspapers. Here are the tips from The Sunday Telegraph plus midweek tips from Shares and the national newspapers.

Follow this link for the share tips from the Mail on Sunday's top stock picker: Midas.

For This is Money's mid-week share tips round-up, click here.

The Sunday Telegraph

It is difficult to remember when Scottish & Newcastle (606.5p) was last free from speculation regarding a possible takeover. Rumours of a deal with Carlsberg or SAB Miller pop up every few months, and have been behind a recent surge in the brewer's share price.

S&N is trading on little more than 16 times next year's earnings, even after recent share price rises. That is slightly less than SABMiller, and less than Diageo. S&N is also trading on a juicy prospective dividend yield of 3.7 per cent, and operates in a defensive sector.

Nonetheless, the shares are being propped up by speculation. We advised readers to buy the shares at 419.5p in February 2004, since when we have made gains of about 45%.

Verdict: Take profits

Anyone who has cast an eye over the UK's listed stockbrokers recently is likely to arrive at one big question: why are shares in Collins Stewart so cheap?

Collins Stewart (255p) is trading on 12 times forward earnings - even after a sharp upturn in its share price recently. Following its acquisition last year of Hawkpoint, the corporate advisory boutique, it now has a more diversified income stream, a bigger client list and an improving geographical spread, which includes a major US office.

Collins Stewart has a less cyclical business than many of its peers, and is set to yield almost 3%. Over time, the rating is likely to adjust.

Verdict: Buy

Trafficmaster (68.25p) has gone a long way to repairing a reputation that was significantly damaged by the bursting of the technology bubble at the beginning of the century. While its shares may have fallen some way from their peak of almost £11, the company has consolidated its position as a market leader in the supply of in-car navigation, traffic information and recovery systems.

There is also a possibility of joint ventures on the Continent. And if the Government's plans for road pricing ever come to fruition there will be some fat contracts up for grabs. Some of this upside is already in the price. Nevertheless we think there could be more to come.

Verdict: Buy

Shares in Tanfield, the Aim-listed manufacturer of electric vehicles, have been defying gravity for the past few months. One year ago the stock was changing hands at 18p, now the shares are trading at 123p. But there is no sign that the momentum that has carried it this far is losing pace.

Tanfield doubled profits last year to £5.4m and analysts keep upgrading their forecasts for future earnings. Even at these prices, the shares are still worth a look.

Verdict: Buy

Shares Magazine

Not only is Medusa one of the few Aim miners to be in production, but it also boasts some of the highest gold grades on the market. With numerous projects expected to bolster its resource portfolio and gold selling prices predicted to stay at robust levels, the miner is one of the most attractive sector players.

Verdict: Buy with a 34½p stop loss

The perception that advertising and promotions agency First Artist Corporation is a lumpy football-fee based outfit with low quality earnings has held back the rating. This will change if the experienced management not only keep divisional profits growing but also pull off the synergy benefits.

Verdict: Buy with a 73p stop loss

Thursday share tips

The Independent

The prospect of demerging Findels' education arm remains on the cards. With so much going on Findel, which trades at just under 13 times earnings, is still good value, recommends the Independent.

The Times

A first well is still one year away for Dominion Petroleum and this is not a stock for the fainthearted, but it's a cheap way into one of the most exciting regions in the sector. Buy, writes the Times.

The Daily Telegraph

Air Partners shares, on forward earnings of 20 times, already look a little overstretched. But given the company's soaring performance and the probability of continuing fair-weather conditions, this could be just the beginning. Belt up for a short-haul buy, says the Telegraph.