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.
Sky: Could have a great year ahead with expansion into broadband
FRIDAY
The Times
It says something about the severity of the sell-off in oil services stocks that Petrofac, down 40% this year, is still the best performer in its sector. However, with the shares at 341p, or six times 2009 earnings, having rallied nearly 20% in the past two weeks, there will be better times to buy. Avoid.
Morgan Sindall's shares surged 15% to a three-month high after yesterday's confirmation that the small-cap building contractor is on track. But at 589½p, up 75p, or a forward multiple of nearly seven times, it is hard not to feel that the shares have run their course for now. Bargain hunters would do better to await February's full-year figures before buying in. Hold
The Daily Telegraph
Analysts believe satellite TV group BSkyB has a great year ahead thanks to an aggressive expansion into broadband. BSkyB doesn't expect to lose customers to Freeview and is on track to reach its target of 10m subscribers by the end of 2009. A potential merger with Tiscali could thrust BSkyB to the UK's number three position, but no business is immune to the challenges to come. Hold.
Investors Chronicle
Shares in Tullow Oil jumped 22% on the latest bullish update on exploration wells in Uganda and Ghana. Drilling so far suggests reserves in each country could turn out to a couple of billion barrels. Given the scale of capital spending required, there will be minimal spare cash in the next couple of years. But with oil prices set to recover, and with plenty to play for across Africa, Tullow is a recommended bet. Buy.
British Land has its fair share of problems but its greatest challenge in 2009 will be raising cash without eroding long-term shareholder value. Burdened with a net debt at 85% of shareholders' funds, it is one of the most indebted UK Reits. With commercial property values expected to fall 25% in 2009, the company runs the risk of focusing its efforts on survival rather than picking up cheap properties which will bear fruit in the next cycle. Sell.
THURSDAY
The Times
Moneysupermarket.com has had a torrid year, it is down nearly three quarters on last year's issue price and the credit crunch has brought mortgage and personal lending, two of its biggest moneyspinners, to a virtual halt. Avoid.
Shares in International Personal Finance (IPF), the overseas spin-off of Provident Financial, have tumbled by more than 60% since August. The company remains well funded, and its model of tightly monitored loans over short durations has consistently produced a return on equity of about 20%. With emerging market prosperity less assured, avoid for now.
The Daily Telegraph
Primary Health Properties (PHP) main attraction is its dividend, the shares are currently yielding an impressive 6.5%. Significantly, about 83% of revenues are secure for 15 years or more. PHP also has an occupancy rate of 99.9%, reflecting the demand for its type of property. Buy.
WEDNESDAY
The Times
Victrex's profit warning two weeks ago sent the shares on a downward spiral, falling 28% in one day. Victrex finished its financial year with above-forecast net cash of £24m, and faces falling capital expenditure after the completion of a second polymer plant. At 442p, up 10p, the shares have rebounded 20% from their low to sit at 11 times 2009 earnings.Avoid.
Axis-Shield shares in are up 28% since the start of the year. A weaker pound is unhelpful (Axis has substantial costs in Norwegian krona) and tougher times might mean doctors defer purchases. But with earnings forecast to treble over the next three years on Brewin Dolphin estimates, at 312p, hold on for more.
The Daily Telegraph
Earlier this year, Gazprom was the third-largest company in the world by market cap. Although gas prices should ease next year, the company has substantial earnings leverage in the former Soviet states. It has been supplying gas at a discount and it in the process of raising prices in most of its markets. Buy.
Yesterday's profit warning from Carpetright showed that things are pretty grim. The company posted interim pre-tax profits of £8.8m, 68% lower than the first half of 2007. Like-for-like sales were down 11.1%. Sell.
TUESDAY
The Times
Yesterday's profit warning from Inchcape was the second in 2 months. A 28% fall in its shares suggests that they are now suffering to. The short-term risk is that banks will raise their interest charges, which were already forecast at £85m for 2009. Avoid.
Wichford, the property group, its shares yield an eye watering 17% despite the majority of its dividend being covered by retail income. However, pressure on net asset values and the likelihood that Wichford will have to raise fresh equity in two or three years' time, mean the shares are for steel-nerved income seekers alone. Hold.
The Daily Telegraph
Tate & Lyle will be promoted back into the FTSE 100 on December 22, but its return to the blue-chip index could be short lived. However, Tate said that it believes its current year results will be inline with expectations, however with a legal ruling hanging over its head, its shares are a sell.
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