Newspaper and magazine share tips

By This Is Money
Updated: 04:57 EDT, 6 January 2010

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

One company that offers good dividend prospects is National Grid. The shares are yielding a nice 5.9% after an 8% increase in the interim payout to 13.65p. Buy for the dividend.

Recently shares in companies such as BG Group have been out of favour. However, despite a January recommendation at £10 they are now 11% ahead, compared to a market rise of 16%. The stance on the shares remains buy.

The Times

Recent ructions in the Royal Mail have played straight into the hangs of Paypoint, the FTSE 250 over-the-counter cash payment network operator. With Paypoint retaining “32m of cash, with its medium-term growth prospects and with a 4.4% yield, at 488p it is too soon to check out. Pass.

The environmental services consultance AEA Technology has been on the Tempus columns better bets. At 28p, or 13 times earnings, take profits.

Investors Chronicle

Capita's share price is showing the conflict between anxieties about the group's short-term outlook and the expectation of bumper opportunities in the longer term. The shares trade on 17 times stockbroker Numis Securities' forecast earnings of 44p for 2010. Buy.

Trading conditions remain tough for construction companies, so it is impressive that Wolverhampton-based Carillion has an order book worth £19.7bn – a figure that is little different from a year ago. Even though they are still supported by a 4.6% dividend yield on a payout that is pretty comfortably covered by forecast earnings. Buy.

THUSDAY

The Daily Telegraph

British industrial group Hill & Smith has two things going for it. It is leveraged to an upturn in industrial activity and it is exposed to government stimulus spending on both sides of the Atlantic. Trading on a December 2009 earnings multiple of 9.2, falling to 8.7 near year, the stand on the shares remains buy.

The telecom operator was recommended for two reasons – its relatively secure dividend and it growth prospectus driven by new technology and increasing penetration in emerging markets. Buy.

The Times

Oil prices may be stuck in an $80 range but forecasts for Melrose Resources continue to move in the right direction. At 356.5%, or 11 times next year's earnings, buy on weakness.

Biocompatibles, the small-cap drug delivery specialist, yesterday announced the acquisition of MoleMate. With train progress, and a maiden profit, expected near year, at 239p, hold on for more.

Shares Magazine

Avocent Mining, is overcoming operational troubles to have a better focus going into 2010, when its third operating mine comes on-stream and greater value could be derived from the other two mines. Buy

WEDNESDAY

The Daily Telegraph

Serco is ideally positioned to benefit from the efficiency of the public sector. The company has also won new contracts which are unlikely to be affected by the political outcome. Despite the high rating, the stance remains buy because prospects for the outsourcing sector look solid.

Cineworld is a beneficiary of the 'cheap night out' trend. With the shares yielding a relatively secure 6.5% and the future looking steady, the stance remains buy.

The Times

Severfield-Rowen, the maker of the steel skeletons that support everything from football stadiums to shopping centres has seen sales, profits and operating margins head sharply lower. At 165p, or 12 times 2010 earnings and yielding 6%, look to buy lower down. Pass.

The recent refashioning of Dexion Commodities, a Guernsey registered investment trust, provides another way to get on board commodities as an investment. Its 96p a share net asset value, at 89.5p is worth a look.

TUESDAY

The Times

Fronted by Peter Jones of Dragon's Den fame, Moneysupermarket has returned to growth, with sales up 5% year-on-year in its insurance business, the site's biggest income generator. Cost-cutting has helped the site benefit from the gradual mortgage market recovery, but the drawback is that moneysupermarket cannot predict too far ahead, so this is one to hold.

Full-year results from Diploma, the specialist distributor, showed a 5% fall in pre-tax profits yesterday, but in reality the figures represent a small success for the firm. Diploma's attraction is a consistent presence in highly-specialised but low profile niches where there is little competition. And with its shares trading at a discount relative to its larger peers, despite receiving the same boost as the economy picks up, this is a buy.

The Daily Telegraph

Breeding cows and pigs that have superior genetics in terms of yield, health and hardiness should help Genus as the global population soars and the demand for food increases. After a setback last week in the US, where the firm warned conditions have deteriorated, any recovery should be rapid, particularly with growth in Asia. This is one to buy.

Sausage-maker Cranswick is looking healthy again as the price of pigs falls after it hit a record high this year. That should see a strong second half performance. Along with upping its interim dividend payout to 8p from 7p, the company has announced a new contract with Marks & Spencer. With pork being marketed as a value option compared to alternatives – particularly in the US, the share are a buy.