Sunday newspaper share tips

By This Is Money
Updated: 09:43 EDT, 28 November 2010

We round-up all the share tips from the weekend newspapers.

FINANCIAL MAIL'S MIDAS

Midas takes a look at whether holders of Pibs at Bradford & Bingley and Northern Rock should take up the offer to sell or hold on.

›› Read the full Midas column

SUNDAY TELEGRAPH

Bloomsbury Publishing is the company behind the multi-million selling Harry Potter series - a children's classic that should continue to generate revenues for many years to come.

Bloomsbury has used the cash generated from this series to invest in new business areas and profits are expected to start to grow again this year. The company's strategy is to 'generate value from within' - especially across digital platforms.

The group launched Public Library Online in May 2009 and it is also trying to grow in the specialist and academic division. It also has expertise in international database management contracts.

The group has acquired Wisden Cricketers' Almanack, Arden Shakespeare and Tottel Publishing, which have proved valuable additions to the group. It has also bought the digital Berg Fashion Library and launched Bloomsbury Academic platforms, which should generate good revenues from trade publishing.

The company's first half pre-tax profit fell by more than half to £949,000 because investment income fell by 75%. However, sales rose 4.2% to £36.8m, with profit before investment income, finance costs, tax and amortisation of intangibles rising to £1.3m from £1.2m.

The company's move into digital, fashion and other specialist publishing bodes well for profits going forward. Shares are currently 116p. Buy. Shares in Dignity, the UK's only listed undertaker, have underperformed recently and now looks like a good time to buy.

A couple of weeks ago, the group issued its third quarter update. In the 39-week period to September 24, revenues increased 5.8% to £145.2m and operating profits rose 4.7% to £45m.

The company, which owns more than 550 funeral director sites and operates 33 crematoria, has a 12% market share in funerals. Shares are currently 647.5p.

Buy.

FINANCIAL TIMES

Carclo makes everything from consumable plastic equipment used in blood tests to LED light units for pretige cars. Rising sales of these products are behind Carclo's rise in revenues from £41.1m to £43.8m, but the shares have doubled in the last two years mainly thanks to its inkjet technology.

Charles Stanley expects these to contribute an extra £2.4m to operating profits next year, 'with scope for more upgrades'.

Zanaga Iron Ore listed on AIM last week with a market cap of £437m. With iron ore prices on the up and Zanaga expanding production capacity in the Republic of Congo, the company hopes to export 45m tonnes of iron ore by 2016.

Shares are up a modest 4p from its 156p float price, but Liberum Capital say Zanaga compares well to peers African Minerals and Bellzone.