Newspaper and magazine share tips

By This Is Money
Updated: 07:13 EDT, 1 May 2009

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.

Share tips: BP's shares are yielding at an impressive 8%

FRIDAY

The Daily Telegraph

Lipoxen's shares soared 211% yesterday after the company released data on one of its products which suggested that it could be used to produce higher quantities of pandemic flu vaccines. Although it may be worthwhile keeping an eye on the company, the Questor column advises against investing, for now. Avoid.

Pork products group Cranswick has seen its shares slide as fears over swine flu increase. The shares have now started to recover and are back over their 600p recommendation price. If swine flu develops into a full pandemic there could be further falls, but for now, the shares remain a buy.

The Times

While Cadbury's chocolate goes from strength to strength, gum has entered a sticky patch. At 507½p, or 13 times current year earnings, the shares, down 23% since last April, still feel too dear given the disappointing start to the year. Pass.

THURSDAY

The Times

Shares in Wolfson have surged 55% since the former Motorola executive was installed as boss of Wolfson Microelectronics at the beginning of the year. At 125p, up 13½p, or 11 times next year's earnings once the cash is ignored, hold on.

Fenner has risen 60% in three days and 137% since last month's low. However, Fenner has clamped down on overheads and capital expenditure and will benefit from any rebound in customer stock levels. At 80p, or six times earnings, and yielding 8.3%, buy on weakness.

The Daily Telegraph

Croda shares are up 38% since they were recommended on December 9 and, after an impressive performance in the first quarter, the shares remain a buy. Croda is a quality company, the board has proved its effectiveness at cost management and the group is well diversified in different markets. Buy.

Multiplex operator Cineworld had a great 2008, with films such as Mamma Mia! and The Dark Knight keeping its auditoriums full. Box-office sales rose 191% in the first quarter of this year, although advertising revenue has, unsurprisingly, taken a tumble. Shares in Cineworld are a buy.

WEDNESDAY

The Times

The WPP boss knew that 2009 would be bad, but it is turning out worse than expected. Only last month, the advertising and marketing group forecast a 2% fall in 2009 revenues but suggested that margins would hold up. But 424¼p, or eight times 2009 earnings, and a yield of 4 per cent, is a good point of entry for long-term investors. Buy.

Friends Provident's first-quarter life and pension sales were forecast to be £205m, a decline of 17%on the year. In fact, the UK's fourth-largest insurer reported sales of only £148m. With the shares at 59.3p, down 3p, hold on.

The Daily Telegraph

Carpetright is a leading cyclical stock. There is a view that, instead of moving, people will now spend time upgrading their existing home – and Carpetright will benefit from this trend. However, this is far too stretched for comfort in the midst of what Questor regards as a bear market rally. Avoid.

BP's dividend is safe in the medium term – despite the 62% fall in its quarterly earnings. BP's major attraction is its dividend and, for this great yield, shares in BP are a buy, despite the subdued oil price. Buy.

TUESDAY

The Times

After months of speculation, 3i, Britain's oldest private equity company, finally confirmed yesterday that it was considering launching a rights issue to help to pay down its £2.1bn debt mountain. If its share price continues to fall, it will be forced to offer an ever steeper discount to NAV to get shareholders interested and it could decide that it is easier to abandon capital-raising. It is too early to buy the shares. Hold.

UK Coal is something of an oddity: a company with extensive property assets – about 46,000 acres of land – whose book value has not fallen year-on-year. The company is likely to remain lossmaking this year – to the tune of £18 million at the pretax level on Numis Securities's estimates. However, it is UK Coal's attraction as a medium-term asset play that gives reason to hold on.

The Daily Telegraph

Long-term holders of BP shares should be pleased. The shares are currently yielding at about 8%. The group is cash generative enough to deal with further oil prices. The share remain a buy.