Sunday newspaper share tips
Each week we round up the Sunday newspaper share tips. For the Mail on Sunday's stock picks read the Midas archive.
Sunday Telegraph
Shares in IT services group LogicaCMG have been depressed ever since chief executive Martin Read stepped down in June following problems with the UK business. But the firm's half year results showed solid growth elsewhere, with France, the Nordic countries, The Netherlands and Germany all outperforming the market and delivering sales growth between 7% and 10%.
The arrival of a new leader will be the key driver to the company's shares and there are promising signs that it will be looking to recruit from outside the firm. Chairman Cor Stutterheim is ceding his his post to David Tyler, formerly of GUS and Home Retail Group. And if the choice of a new recruit disappoints analysts believe there may be a chance that the company could become a takeover target.
Buy at 158.25p.
Equipment hire group Ashtead, which rents out pumps, generators, diggers and forklifts, posted a forecast-beating 250% jump in first quarter pre-tax profits. But the news was not enough to lift the shares out of their current slump, which has seen 30% knocked off the price since March.
The trouble is that Ashtead makes about 95% of its operating profits in the US. And with the American housing market in decline, the market has assumed that the firm will be severely hit. But the group has very little exposure to housing, dealing primarily with the rest of the US construction industry - and the figures show US revenues and profits are growing.
This is a highly geared business operating in a cyclical market, but the shares are trading below fair value. Worth a look at 120.75p.
The Vitec Group sells products and services related to broadcasting, photography and the entertainment industry. Its imaging division manufactures and distributes high-end photographic accessories for use by professionals and keen amateurs - and continues to do well on the back of digital SLR camera sales.
Its broadcast systems division designs and produces camera supports, tripods, portable lighting, auto-prompting products and other niche equipment for the professional broadcasting industry. Meanwhile, its third arm provides technical services and equipment hire for outside broadcasts and is expected to benefit from the Beijing Olympics next year.
Its half-year results impressed last week, with imaging and broadcast systems delivering strong organic sales growth and technical services putting in a decent performance against tough comparatives last year. The combination of the group's growth prospects and its dividends makes it and interesting proposition. Buy at 570p.
Silverjet, the business class only airline, has enjoyed a relatively smooth takeoff since launching in January. It has seen passenger bookings grow and has enjoyed growing brand recognition. But the performance has not been mirrored in the share price, which initially soared to £2 before dropping back to around 70p.
This can, in part, be explained by delays in launching its second service - which is now up and running - and the general market turbulence. There is also uncertainty surrounding the business class only sector, which is yet to be proven. On the upside, the firm has a highly aggressive management team, and is one of the better value offers for its customers.
It plans to grow its fleet to five aircraft in the next six months, which should help push up revenues dramatically. House broker Arden Partners is forecasting the firm will make bottom line profits of £42m by 2010. Silverjet has a long way to go, and some industry experts believe if it is a success it will become a takeover target for a bigger airline.
But for high flyers and risk takers, the shares could be worth a punt at 73.5p.
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