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.

Energy exploration offshore

Tullow Oil: unveiled more positive results from a well at its Jubilee field in Ghana last week

FRIDAY

The Daily Telegraph

Full-year earnings at oil services group Petrofac will be up by 'at least' 20% as the company continues to wine new orders. After such an impressive rally, the stance on shares for now is hold.

Significant growth in the UK economy is not going to return for some time. Unilever is one company that will have growth in emerging markets abroad – a safe bet during the climate. The stance remains buy.

The Times

Newspaper and magazine circulations may remain under pressure but business at Smiths News has never been better. At 122.25p, nine times earnings, the shares are Worthing owning for the 5.6% dividend yield alone. Buy.

Pinewood Shepperton has had to call a halt to its £200m 100-acre set development. A weak US dollar will work in its favour. But at 135p, or 18 times 2010 earnings, the shares are best avoided.

Thursday

The Daily Telegraph

The construction of a five star hotel in Abu Dhabi Grand Prix circuit reflects some of the 'new Carillion' story. While the UK construction sector isn't that sexy at the moment investors should buy Carillion shares before the market catches on.

Publishing group Pearson raised its full-year forecast this week after a strong nine-month performance, especially in its US education business. Upgrades to consensus forecasts are likely, probably by about 4%, and so the stance on the shares remains buy.

The Times

Home Retail Group has much to feel positive about. However, the weak pound and recovery's frailty will deter most investors. With HRG's shares at 17 times next year's earnings, there are cheaper ways to bet on recovery. Pass.

Burford Capital made its debut on AIM yesterday with a 7.5p rise to 107.5, after successfully raising £80m to invest in financing commercial litigation in America. With much to prove that rates of return of at least 30% can be achieved, hold the shares for now.

Shares Magazine

Porvair, the specialist filtration and environmental technology group, has lagged behind the market rally. Hit by falls in industrial demand, and heavily dependent on the state of the US market it is a prime candidate to see recovery. Buy.

Legal & General's new regulations on capital are likely to be toned down. The Spring cut means expectations have been successfully rebased, leaving the group with scope to grow the payout going forward in a sustainable way. Buy.

WEDNESDAY

The Daily Telegraph

Through the provision of good value, comforting food, Greggs has been one of the winners of the recession. The shares are up 12% since their recommendation on August 12 and they are trading on a December 2009 earnings multiple of 13.8 times and yielding 3.5%. Buy.

Last week's in-line trading update from Mothercare demonstrated the international growth potential this company has. The current-year earnings multiple is 18 times, falling to 16 times next year, which is high, but this reflects the group's strong profile. Buy.

The Times

Bank of England economists do not make the most obvious entrepreneurs, but Neil Record is there to prove otherwise. At 80¾p, or 13 times earnings if cash is ignored, and yielding 5.7%, buy.

Pearson is perceived as one of the stock market's classic countercyclical plays — a defensive share that is worth owning when times get tough but is in danger of being left behind when recovery ensues. At 858½p, or 14 times earnings, hold.

TUESDAY

The Daily Telegraph

As quite possibly the ultimate luxury good, the diamond market has been hit particularly hard by the recession. There are now sings of improvement in the industry. Petra Diamond's full-year results dispelled worries about a cash call. The shares are a good recovery play on the global economy. Buy.

Tullow Oil unveiled more positive results from a well at its Jubilee field in Ghana last week, boosting its reserves in the area. The group achieved a 77% exploration success rate with 17 successful wells out of 22 in 2008. However, Questor believes that you don't go broke taking a profit and the investment is showing gains that are good enough to bank. Take profits.

The Times

Hardy Underwriting took its first steps into the Middle East yesterday by announcing a reinsurance joint venture with Arab Insurance Group of Bahrain. At 290p, the shares are reasonably priced – less than eight times 2009 earnings – and provide a solid 4.6% dividend yield. Buy.

St Ives is one of Britain's biggest printers of annual reports, but its own document – due for publication within the next few weeks – is likely to make depressing reading. At 74p, or 13 times current-year earnings, and yielding 3%, those are insufficient grounds for a purchase. Pass.

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