Newspaper and magazine share tips

By This Is Money
Updated: 12:14 EDT, 29 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

Tips: We round up the latest share tips from newspapers and magazines.

FRIDAY

The Times

Paypoint, which provides an over-the-counter cash payment system for utility bills, has teamed up with Home Delivery Network, allowing home shoppers to pick up packages at their nearest corner shop. It's a positive move but the company is feeling the effects of lower energy bills and bad debts. Figures may be in line with forecasts – profits are up 8% - but the firm faces huge start-up losses in home collection. Hold.

HSBC Infrastructure Company (HIC) shares are trading at a tighter discount than its rivals. HIC has avoided investing in projects with an element of cyclicality (eg airports, ports) in favour of lower risk PPP and PFI schemes. Full-year results show that all 28 assets in its portfolio are up and running, and the firm continues to raise its dividend. Not the raciest investment but risk-averse investors seeking yield should buy.

Daily Telegraph

This week, Northern Foods held its dividend and produced a respectable set of operating results. Shares are now trading on a March 2010 prospective yield of 7.3% and it's not too late to buy for a final dividend of 2.95p. Northern is benefiting from customer downgrading to cheaper branded goods, although material costs were 12% higher than the previous year, as energy jumped 64%. High yields makes Northern a buy.

Peter Voser takes over as Royal Dutch Shell's chief executive on 1 July, having taken a leaf out of money-making machine ExxonMobil's book. Voser is planning a company restructure which the group hopes will cut costs by hundreds of millions of pounds. But Shell still faces many challenges. Debts are rising and there are concerns about future production growth. Hold until changes have been made.

Investors Chronicle

British Land has seen the value of its properties plunge steeply and has warned the effect of the global recession on the real economy 'has yet to be fully felt'. Portfolio valuation fell 28% in the year to 31 March 2009. Analysts have also been disappointed over a lack of progress in the sale of its Broadgate office. Shares are down 26% and the risk of further falls is high. Sell.

Investing in an insurer might not seem like a safe move during a global financial crisis but Bermuda-based Lancashire Holdings looks well-placed. First-quarter figures show that rates are up between 10 and 50% in the past year. Lancashire remains one of the most profitable underwriters in the hurricane sector. The books remain focused on low-risk assets. Trading at less than rivals and, with improving rates set to deliver decent earnings growth, it's a buy.

THURSDAY

The Daily Telegraph

Despite a long period of caution, Northern Foods is now rated as a buy by the Questor column. On Wednesday, Northern Foods held its dividend and produced a respectable set of operating results. The shares are now trading on a March 2010 earnings multiple of 9.7 times, falling to 9.1 in 2010. Buy

Peter Voser takes over as Royal Dutch Shell's chief executive on July 1 and he has taken a leaf out of the world's largest oil company, ExxonMobil's book, and he will now manage projects separately to drive performance. However, it does not mean that the group is out of the woods yet. The moves unveiled by Mr Voser are positive, but hold for now.

The Times

Investing in tile retailers may not seem like the best idea, but Topps Tiles has had the single best gain in the FTSE all share index in the past four months. Shares are up from 15p to 78p. However, at 15 times earnings and with no dividend to offer, the shares are up with events. Pass.

Kentz, an AIM-listed specialist contractor in onshore petrochemical facilities, is benefiting from the liquefied natural gas (LNG) boom. At 143.5p, up 3.5p, or four times earnings once the cash is ignored buy on weakness.

Shares Magazine

Amlin, the non-life insurer and re-insurance company, is trading shares at an unwarranted discount to the rest of the sector. Hardening insurance rates should drive earnings upgrades and prompt a re-rating. Buy.

WEDNESDAY

The Daily Telegraph

Shares in industrial services group Cape have risen an impressive 143% since they were first recommended as a risky buy on March 12. Despite these gains, Questor still thinks the shares are a buy, albeit a speculative one. The shares remain a buy, but as Questor has said each time the company has been covered, its shares should be regarded as a speculative buy and not one on which to bet the farm. Buy.

Oil prices are now at a six-month high – and the movement of US crude from $50 a barrel to $60 a barrel has been rapid. Although there is doubt about the long-term bull of the oil price because of rising demand and declining production, the oil price isn't likely to spike much higher imminently. Gazprom's are now 39% ahead of their recommendation price and Questor feels that now would be a good time to bank these gains. Take profits.

The Times

Holidaybreak's spread of travel businesses can be interpreted as positive or negative. It invariably provides the group with counterbalances against bad trading but its educational division has been offset by weakness in hotel breaks and adventure travel. At 239.5p, or seven times earnings, the shares – which have more than doubled since October – are up with events. Pass.

Gold has become an important money spinner for Ablemarle & Bond, Britain's biggest pawnbroker. At 214p, up 18.5p, or ten times next year's earnings, it is well-run and, at 114 stores, has plenty of room to grow. Hold.

TUESDAY

The Daily Telegraph

Today's Questor column gives its top tips for the good, the bad and the future. It has tipped Vedanta, Centamin Egypt, Fresnillo and Rio Tinto as consistently good companies to invest in. It asks investors to err caution when investing into Gem Diamonds, which is down 37% since January. It also highlights JP Morgan Indian Investment Trust, BG Group, BP and Northern Foods as companies to watch for future investment opportunities.