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
Given that Aggreko books 70% of its sales in American dollars, recasting last year's numbers at current exchange rates implies 2009 pre-tax profits of £250m, or roughly £60m more than consensus estimates. The shares rose 9% in response. The short nature of the company's order book means that it cannot see very far ahead. Even so, at 412½p, up 35¼p, or eight times revised 2009 forecasts, the shares should be held.
Cobham, the FTSE 100 defence contractor, has 90% of its borrowings in US dollars. Even so, spending on defence electronics – Cobham's niche is complex assemblies and subsystems – tends to be among the last to suffer. At 183½p, or 11 times earnings, hold.
The Daily Telegraph
The Questor column has rounded up the top five companies regarding dividend payments. BP, Primary Health Prop, Reckitt Benckiser, Imperial Tobacco and SABMiller have all made the list of recommended investments.
THURSDAY
The Times
IMI, a supplier of valves to the energy sector, emerged with much the same message. Sales from that niche were up an above-forecast 10% over the past three months. The short-term outlook is grim. But at 255½p, or seven times 2009 earnings, IMI is worth holding for income alone.
Yesterday Sportingbet, the online bookmaker, reported a 35% jump in second-quarter underlying operating profits to £10.1m. The shares have nearly doubled since October's low but with net cash of £27m and profits still rising, at 40p, or eight times earnings, they have farther to go. Buy on weakness.
Investors Chronicle
The tide has turned on cruise ship operator Carnival, and 2009 could prove extremely stormy. Customers are opting for cheaper cruises and there is no dividend support for the share price. Sell.
Thorntons, Britain's biggest independent chocolate specialist, is facing a sticky situation in the current market. The company has slashed its half-year dividend from 1.95p to 1.2p, but analysts believe it will still pay a full-year dividend of 4.4p. Given the current climate its shares are best avoided.
The Times
Drax Group, owner of Britain's biggest coal-fired power station, revealed yesterday that revenues are up 41%. 2009 is set to be another strong year, with 80% of this year's output already sold forward. But commitments to build new biomass plants means that only half of surplus funds will be returned from 2010. Side-effects of recession could cause the pot to shrink. Avoid
Revenues are up 6% at insurance brokers Jardine Lloyd Thompson, clear evidence it's taking market share from bigger rivals. But dwindling business activity in the private sector could have a negative knock-on effect. JLT has, however, a good grip on costs, only £9m of debt and organic growth that should mean double-digit gains in earnings. Hold
If low crude oil prices are bad for Rotork, there is no sign of it yet. The world's biggest maker of actuators disclosed a record £162m order book yesterday — up 31% year-on-year. And with about 80% of its UK output sold overseas, Rotork is a big gainer from a weaker pound. A growing cash pile of some £41m means there is room for further special dividends or ad hoc acquisitions. Buy
Whitbread, which owns the budget hotel chain Premier Inn, reported a sharp slowdown in recent trading yesterday, mainly due to a reduction in the amount of leisure business at its hotels as consumers reined in spending on short breaks. At 702½p, down 44p, or ten times next year's earnings, and yielding 5%, tuck away for the long term. Hold.
As sponsor of the Oxford and Cambridge Boat Race, March is usually the month when Xchanging grabs greatest attention. But the outsourcing specialist stood out for all the wrong reasons yesterday, when full-year figures pulled its shares down nearly 7% to a new postfloat low. Even so, 189½p, or 11 times current-year earnings, seems too steep a discount to Capita, given a strong cash position and the dynamics that they share. Buy.
The Daily Telegraph
Amlin. the largest of all of the Lloyd's of London insurers, has a market capitalisation of £1.6bn/ The group has reserves of £700m above regulatory requirements, including debt. As insurance brokers become increasingly cautious about who they deal with in the wake of former insurance giant AIG's troubles, Amlin will be well positioned to pick up business. Buy.
Goals Soccer Centres remains confident it is on to a winning formula, despite the recession. Goals is paying a small total dividend of 1.8p, up 20% on the previous year. Its latest numbers meant the group has enjoyed eight consecutive years of growth in sales and profits but the shares are still close to historic lows. Questor says buy.
Most watched Money videos
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Volvo's Polestar releases new innovative 4 digital rearview mirror
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- How to invest for income and growth: SAINTS' James Dow
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- Mercedes has finally unveiled its new electric G-Class
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Mini Cooper SE: The British icon gets an all-electric makeover
- Mini celebrates the release of brand new all-electric car Mini Aceman
- Avon Protection handed £38m gas mask contract by MoD
- MARKET REPORT: North Sea giant Harbour closes in on £9bn...
- Bailey pulls his punches on interest rates yet...
- Watches of Switzerland buys Italy's Roberto Coin Inc for...
- ITV hit by Hollywood strikes as it pins hopes on Euros...
- BBVA goes directly to shareholders as it steps up bid for...
- Bank of England paves way for Britain to cut interest...
- BAE Systems tools-up for growth as Britain plots defence...
- Ford confirms it will cull another of its best-selling...
- Takeover target Wood Group hit by slump in revenues as...
- Used car sales hit a five-year high as fresh supply of...
- Mortgage rates are climbing again - should we be worried?...
- Why we need more than a British Isa to move the dial on...
- BUSINESS LIVE: BoE base rate decision; ITV eyes ad market...
- ITV hopes for summer ad boom as it continues to reel from...
- Vodafone told to boost security as £15bn Three merger is...
- Cameron left red-faced as Greensill sues Government over...
- My uncle has £14,000 in Dart Charge fines despite trying...