Newspaper and magazine share tips
Each week we round up share tips from national newspapers and investment magazines. For the Mail on Sunday's stock picks, read the Midas column.
FRIDAY
The Times
Hays, whose shares have fallen by 57% the past 12 months, has decided to scale back its repurchase programme. Hays is better placed to take advantage of that trend than many of its peers, with fees evenly split between temporary and permanent positions. Hays looks cheap, at 76½p or less than seven times forward earnings, but not cheap enough given the risk of downgrades. Sell.
Yesterday's second-quarter numbers from Marriott wiped 7% from the IHG share price and taking the decline over the past 12 months to 50%. IHG, which in recent years has tended to outperform the market, does not give out revpar forecasts. IHG has a more robust business model than most. Hold.
The Daily Telegraph
Holding stock in the insulation and construction products group has been a pretty miserable exercise. Yesterday SIG's shares stood at 411¾p, leaving investors sitting on a loss of around two thirds. On less than six times 2008 earnings, the shares trade well below historic valuations, and the yield of 7.5% looks safe, given that the dividend is 2.5 times covered. Hold.
Yesterday Salamander Energy stood at 305p after the company announced a deal to expand its assets in Indonesia. With production and profitability set to take off in 2009, and with strong support from the analyst community, the stock appears to be good value.Buy.
Investors Chronicle
There is no doubt that the UK's construction companies are going through a torrid time. Balfour Beatty's bosses are taking a conservative approach to assessing potential work, even though the current order book stands at £11bn, up from £11.4bn. Balfour's shares have the highest rating in the construction sector, trading on 11 times forecast EPS, and the dividend yield on offer is nothing to get excited about. However, it has a well-diversified business and a strong order book. Buy.
Self-storage was one of the winners from the UK's commercial property boom, but with the economy is slowing there are no pointers for how the sector will cope in a serious consumer downturn. Both Safestore, and its rival Big Yellow, are showing signs that trading is weakening. Its shares now look decidedly vulnerable. Sell.
THURSDAY
The Times
Yesterday's first-half update from Interserve, the construction and support services specialist, did not disappoint. Trading in the six months to June 30 has been strong, putting the company on track to post a near-10% rise in full-year earnings. Interserve has not been immune from the downturn, however. It has a small business that fits outs shops and hotels, which is starting to struggle. However, there are worse corners of the stock market in which to remain. Hold.
Buying on a profit warning requires bravery, but in the case of Begbies Traynor, such luck has paid off. December's earnings alert showed shares were up from 88p to Tuesday's 169p, in the space of seven months. At yesterday's 160½p – the shares fell 5% after current-year profit forecasts were left on hold - Begbies sits on a forward multiple of 18 times. Hold.
The Daily Telegraph
The Big Yellow Group's trading update was mildly reassuring, with total occupancy level flat over the first quarter, suggesting the business is hardly collapsing in the way the share price would indicate. Its stock stands at 260p, compared to 422p last November, and while there may be a bumpy road ahead it shares could be worth a punt. Buy.
ASOS: Not immune from the High St squeeze
Shares Magazine
Even online fashion retailer, ASOS, isn't immune form the retailing recession sweeping the High Street. On Tuesday, the shares saw one of their largest falls for months, crumbling 8% to 305p. The risk simply outweighs any likely rewards. Sell.
The BT Group has a fat yield and a single-digit prospective price earnings ratio. This makes for an attractive valuation on a stock where earnings dependability should prove a key asset during these uncertain times. Financing is not a concern and its dividend cover, at a multiple of 1.4, could be higher. Buy
WEDNESDAY
The Times
Yesterday the Dunelm Group, the out-of-town homewares retailer, turned in a solid trading update. To
Yesterday's second-quarter trading update from PartyGaming is hardly guaranteed to instil confidence in the internet poker company. It wasn't all gloom, with its casino and bingo sectors still performing. But its shares, at 223½p, or 13 times 2008 earnings, are only for the brave. Avoid.
The Daily Telegraph
For savers in Bradford and Bingley, their money is safe. However, its shares, worth 536p in early 2006, are now down to a fraction of that. However the key point is that even in the event of a takeover, B&B shareholders are unlikely to see much value accrue to them in the form of a bid premium. Questor recognises that depositors' money is safe, but suggests anyone with money still tied up in the shares should get out now. Avoid.
TUESDAY
The Times
Shares in Punch Taverns have dropped from £13.02 to 279¾p in the past 12 months – a fall of 78%. Trading is not about to get any easier, but once the anniversaries of the smoking ban and the flooding are passed, comparatives should ease. With conversion to a real estate investment trust also a possibility, there is no reason why the shares – trading on a forward earnings multiple of less than four – should not bounce. Buy.
The New York-listed shares of GLG partners have refused to rally, despite the best efforts of the $24bn hedge fund to prepare for the departure of Greg Coffey, its superstar trader. GLG will be hoping that Mr Ben-Brahim's 15 years of experience at Goldman will help to stem the prospective outflow of funds. It has cause for hope, but investors are likely to sit on the sidelines until firm evidence emerges. Hold.
The Daily Telegraph
It's easy to make the bear case against recruitment specialist Michael Page International. But the crucial thing is that just a third of its profits now come from the UK, with the international part of the business becoming increasingly important. On the short-term horizon, investors should be cautious about buying into any of the staffing groups. Hold.
Spice, the utility services business spun out of Yorkshire Water a dozen years ago, is in an enviable position. A good portion of its revenues are protected from the vagaries of the economic cycle and are not dependent on discretionary spending, which is rapidly drying up. Yesterday its shares stood at 528p, which, given the meltdown in the equity markets, is a tremendous performance. Buy.
Most watched Money videos
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Blue Whale fund manager on the best of the Magnificent 7
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- How to invest for income and growth: SAINTS' James Dow
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Mail Online takes a tour of Gatwick's modern EV charging station
- Mercedes has finally unveiled its new electric G-Class
- Boohoo sales plummet as debts surge
- Investors pull cash out of UK equity funds for the 35th...
- TSB to close one in six branches: More than 6,000 shut by...
- Hedge fund tycoon's £34m silver salvage claim sunk at the...
- BUSINESS LIVE: Boohoo sales slump; Wetherspoon's lifts...
- Direct Line customers faced higher prices in the first...
- Minis new electric Cooper SE tested: Can BMW harness the...
- MARKET REPORT: IAG leads Footsie higher as airline shares...
- Oil industry engineer Wood Group rejects £1.4bn Dubai...
- Millions kept in the dark over City watchdog's mystery...
- Wetherspoon's profits buoyed by Guinness boom among...
- Don't ditch name and shame plan - it has the City running...
- Snoop Dogg cannabis firm to ditch London after losing 97%...
- Could the Bank of England really cut interest rates this...
- Brewdog founder James Watt steps down to become 'captain'...
- Tesco uses AI to give millions of Clubcard holders...
- Events planner Informa hikes share buyback scheme to £500m
- Banks should be forced to disclose why they debank small...