Newspaper and magazine share tips

By This Is Money
Updated: 04:37 EDT, 15 November 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.

FRIDAY

The Daily Telegraph

Immarsat owns and operates 11 satellites positioned in orbit and they are set to benefit from the introduction of mobile phone usage on aircrafts. The buy status of their shares is maintained by the Questor column but investors may want to wait until the excitement over the companies inclusion in the Morgan Stanley Capital World index has died down. Buy.

HSBC Infrastructure Fun is definitely a fun for income seekers. Their shares are currently yielding 5.4% and it plans to increase its full-year dividend to 7p by 2013. Everything at the fund appears to be on track and the security of a long-term dividend stream is very attractive. Buy

The Times

Yesterday's trading update from Amec might be regarded as something of an irrelevance. The companies team are highly incentivised to succeed, so the potentially invigorating effect of next month's presentation should not be underestimated. Until then, at 822.5p, stand aside.

Just over a year on, Synergy Healthcare is showing no ill effects from last autumn's profit warning – the first in its eight years as public company. At 619p, or 14 times next year's earnings, buy on weakness.

Investor's Chronicle

Carnival is facing some choppy waters. Despite bookings looking up there are higher fuel costs to contend with. Even though as the world's largest cruise operator Carnival does look well placed to navigate stormy waters its dividend payout was axed in order to preserve capital spending. Sell.

Multi-disciplinary consultancy RPS has benefited from its diversity. Although the group continues to face deteriorating conditions in some places, such as Ireland, other key markets offer ground for optimism. Buy

THURSDAY

The Daily Telegraph

Croda makes the simple everyday things we take for granted. The group's recent update underscored the leverage it has to any industrial upturn. The stance on the shares, despite the high rating, remains buy.

Another company that sees solid prospectus for the US economy is Balfour Beatty. The shares are yielding a safe 4.5% and the earnings multiple, at 7.5 times, is not demanding. Buy.

The Times

Yesterday's trading update from Micro Focus Intl didn't provide any clues on the search for a chief executive. The shares, at 410.5p or 12 times next year's earnings, should be bought on weakness.

Ultra Electronics' exposure to 'smart' defence applications, a strong balance sheet and vulnerability to takeover from a larger contractor that, at £13.09, or 13 times earnings, is a cause to hold on.

Shares Magazine

HMW has reduced competition is good news for the all important Christmas trading period. Buy the shares ahead of what should be a decent few months' business. Buy.

The troubled airline operator, Aer Lingus is showing the first signs of recovery. It is very early days but improved market sentiment could help Aer Lingus join the cyclical rally in airline stocks. Buy

WEDNESDAY

The Daily Telegraph

Imperial Tobacco's full-year profits managed to beat expectations. The shares are trading on a September 2010 multiple of 10.7 times and yielding a respectable 4.5%. Buy.

The main reason to won shares in Northern Food is the dividend. The shares are presently yielding an impressive 7%. They are trading on a March 2010 earnings multiple of 11.1 times, falling to 9.7% next year. Buy.

The Times

Yesterday's 4% fall in Babcock International should not disconcert. Shares in the engineering services group have risen by nearly one third since September. At 619.5p, or 13 times current-year earnings, hold on.

Schroders is reaping the rewards of several years of restructuring. About 70% of their revenue comes from outside the UK. The shares, at £11.70 or 14 times 2010 earnings, are worth buying.

TUESDAY

The Daily Telegraph

Security company G4S was remarkably upbeat in its third quarter update yesterday. This is a defensive stock that looks good in both a down and upturn. A solid buy for these uncertain times. Buy

IMI, the engineering group that makes valves used in climate systems in hotels and shopping centres and drinks dispensing, is worth investing in. The shares are yielding around 4.5%. Buy.

The Times

Yesterday's update from Hiscox, the second largest quoted Lloyds of London insurer, showed that it was on track to report a doubling of pre-tax profits in 2009. At 338p, up 10p, or a 29% premium to Numis Securities' forecast of net tangible assets, Hiscox is a discovered jewel. Even so, hold.

For most of this decade, there has been a single powerful reason to hold shares in TT Electronics, the small-cap components supplier, doled out 10.1p-a-share dividend. But at 70p, or 23 times next year's earnings, TT's recovery is already assumed. Await further progress before buying.