Newspaper and magazine share tips

 

Each day we round up share tips from national newspapers and investment magazines. For the Mail on Sunday's stock picks, read the Midas column.

Newspaper's

Round up: We round up the latest share tips from national newspapers and investment magazines

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FRIDAY

Investor's Chronicle

Motor insurer reported good news with its first-half figures in August. Its premium rates jumped 14% at a time when most insurers are struggling to stop rates from slipping. Admiral is still perceived as high growth, which explains the near 50% rise in its share price last year. But if motor insurance premiums falter and Admiral's growth slows then that precarious rating will suffer. Investors would be wise to exit now. Sell

Housbuilders are more vulnerable than most in changing economic cycles but land has remained constant throughout. During the first half of 2010, Persimmon is in a very strong position, managing to adjust its construction mix away from flats towards traditional family houses, where demand has held up better. The share price is almost 30% below net asset value of the land bank with all liabilities deducted. They offer good long term value. Buy

Daily Telegraph

Support services and construction group Carillion posted a positive update. The telegraph's Questor first tipped Carillion on October 22 last year at 310.3p and its shares are up 6% since then, compared with a market up 9%. The shares are still trading at a significant discount to sector peers Serco and Capita and remain a buy.

Silver prices at a 30-year high have seen shares in South American-based silver miner Hochschild Mining jump by more than 50% over the last month or so. Even a brief period of dollar strengthening could see silver prices plunge. For this reason the shares are now a hold, but should a buying opportunity arise as the silver price corrects, new investors should consider buying then. Hold.

THURSDAY

Daily Telegraph

Greggs sales in the third quarter rose 2.1%, boosted by the sale of bacon rolls. The shares were first recommended at 400p on August 12 last year and are up 16% compared with a market up 22%. The company is very cash generative, has a good growth strategy and its new product lines are selling well. But the shares are now a hold until sales growth stops slowing. Hold.

It's been a volatile ride for investors in Northern Foods – and the shares are currently 10% below the initial recommendation price and 30% below a later Telegraph tip. Questor still thinks fears have been overdone. Hold

WEDNESDAY

The Times

Betfair this week confirmed its intention to float, but will it be another Ocado. Since going public in the summer, Ocado's shares are trading at less than half the price its founders originally dreamt they could be worth. Investors being bidding towards something like £11 and £14 a share, which doesn't leave much room for growth after the float. One for the long term.

Yesterday Nestor Healthcare rejected an unwanted approach from Acromas Holdings, the vehicle that now owns the AA and Saga, at £1 a share. One can see the attraction of Nestor, a large chunk of whose business is the provision of duty medical staff to stand in for doctors out of hours. The Government's spending cuts could see more business contracted out to companies like Nestor. Hold.

TUESDAY

Daily Telegraph

Last week, Bob Dudley, BP's new chief, hinted that the company's dividend may be restarted this year. BP suspended its dividend in June for the first time in 18 years after the oil spill. The situation is clearer now and Mr Dudley is in a position to put the disaster behind the company. The shares are trading on a December 2010 earnings multiple of 6.5 times, falling to 6.1 next year. BP shares are upgraded to a buy.

Steel makers have been squirming as the price of iron ore, one of the main ingredients in steel, has jumped in price over the past year. However, this has been a time to make hay for some of the world's largest exporters. One smaller producer that has seen the benefit is Ukrainian group Ferrexpo. It has a world-class resource and benefits from being close to European steel mills. The shares are trading on a December 2010 earnings multiple of 7.1, falling to 6.2 next year and yielding 1.2%. Buy.

 

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The Independent

Premier Foods recently found themselves in a pickle as thick as the Branston the company makes. The shares reached 325.5p in February 2007 but since then it has been downhill – reaching 16p on Friday. It is paying for loading up its balance sheet with debt to fund an acquisition binge. We do not believe it is out of the woods yet – in addition to all its debt, the company has to reduce its bulging pensions deficit of £431m. Sell.

Engineering and design outfit WS Atkins became the latest to enter the mergers and acquisitions market yesterday, confirming that it is spending $280m on its US peer PBSJ. We backed this stock at 571.5p back in February (it is now 738p). Despite the improved share performance, on a forecast multiple of 7.1 times full-year earnings, the stock is still inexpensive. Buy.

The Times

Engineering consultant, Waterman Group, takes three quarters of its workload from private property development and 70% from Britain. The company has had a rough couple of years without going bust. About a quarter of its turnover comes from the British public sector, so if property is on the way up again, the pain may not be over yet. The next fear is the public spending cuts. It will be a long crawl back and pre-tax profits, £6.9m at their peak a couple of years ago, will struggle to exceed £1m this year. Hold.

Enterprise Inns have had a rotten time over the past couple of years. They will release full-year figures on November 16 and if profits have stabilised, then the company can say it has got through the downturn and refinanced without tapping shareholders for fresh cash. The company could resume paying interims next summer. This would cost about £33m, out of forecast pre-tax profits of about £170m. An interesting punt, buy.