Newspaper and magazine share tips

By This Is Money
Updated: 10:59 EDT, 8 April 2011

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

To stay ahead, you can also sign up for This is Money's exclusive share tips.

FRIDAY

The Independent

The Independent recommends to SELL Armour Group, as the hi-fi and home cinema equipment company has suffered from a weak consumer electronics market. The group also produces audio and visual equipment for cars: this division has suffered less, but as Britain is its core market with 80% of the business based here, and conditions 'have deteriorated significantly over the last six weeks', the company expect to recover not earlier than 2012. The share price is 4.5p.

Staffing firm Machtech is a BUY, as after a recent pullback the stock was left on a valuation of less than nine times forward earnings, and has a 7% forecast yield. The company suffered a sudden tumble after it warned on full-year profits in February, but in the meantime there have been some improvements, in particular in Machtech's newly launched professional services brands. The share price is 209p.

The Daily Telegraph

Questor says to BUY Balfour Beatty, an outsourcing and construction group that has just completed the acquisition of the energy company Power Efficiency for £18m. This represents a good investment for Balfour Beatty, as the cost of energy is going to continue to increase. The group is also moving towards being a full-service construction company, and has signed, among others, deals to build the east-to-west London railway, a 23-mile rail link to Denver airport in Colorado, the aquatics centre for the London 2012 Olympics. Balfour's full year results posted last month were strong: revenues rose 2% to £9.2bn, the order book hit a record of £15.2bn, up 8% from the end of 2009. The final dividend is 7.65p, bringing the total payout for the year to 12.7p, a 5,8% year-on-year rise. The shares are trading on a December 2010 earnings multiple of 9.1. The yield is at 4.1%.

Electrical components distributor Electrocomponents is also a BUY for the Daily Telegraph. The company has made a strategic move into e-commerce, which now represents 53% of sales. In the three months ending March, sales grew by about 17%, with the international business growing by about 17%. The shares are trading on a March 2012 earnings multiple of 13.1 times, falling to 11.6 in 2013. The prospective yield in current year is 4.5%.

The Times

Technology company Endace is a BUY for Tempus, as there is a growing demand for technology that can help combat cyber crime. Shares in the company have surged 13% after a trading update pointed to much better than expected revenue and profit growth for the year.

Pharmaceutical company IS Pharma is a profitable maker of specialty medicines for hospitals in areas such as oncology and neurology. It operates only in the UK and Ireland. The company has recently merged with Sinclair Pharma, which has a broader reach with sales forces in five European countries and distributor in 90 other regions. Sinclair has grown 24% in sales, while IS Pharma has grown 66%. But for now, The Times recommends to HOLD until the merger shows better results.

Shares

Clear Stream Technologies, a medical devices company, is a BUY for Shares. The last fortnight's 15% drop in its share price from mid-March's 57p peak offers an excellent opportunity for investors. Clear Stream 's main engine for growth is the peripheral angioplasty market, which is a relatively new and rapidly growing surgical procedure. It accounted for 72% of all sales in the first half of its financial year. The US market for this kind of product is estimated to be $2.8 billion and is forecast to double by 2016. The £22.1m cap of Clear Stream has already partnered with two major US distributors, Cordis and C.R.Bard.

Engineer company Metalrax is also a BUY for Shares. The company makes products for the medical, specialist metal coating and premium automotive markets. Last month's full year results showed a 7.1% rise in sales. The forecast for 2012 profits is 54% higher than last year's £1.7m. Net borrowings are predicted to decline a further 38% to £5m over the same period. Previously marked down due to its high debts, the engineer has now returned to profit and a more efficient business. Investors chronicle

Although its growth has been impressive, with sales that have doubled in its first year as a public company, and a 90% sales growth last Christmas, fashion company Supergroup is a SELL for Investors Chronicle. The share is fragile under the surface, with a price that has slipped sharply over the past month from February high. And its share rating fails to reflect the risks inherent in fashion retailing and the group's dependence on its style director.

Outsourcer Mitie is a BUY for Investors Chronicle. Although organic growth has slowed down the situation is expected to improve during 2011. Improvements to profit margins should lessen the impact on profits, which are expected to hit City forecasts. Recent acquisitions will help bolster the result for 2011-12. And, with a £100m placement of loan notes recently completed and a robust balance sheet, acquisitions remain on the cards.

THURSDAY

The Daily Telegraph

It could be a volatile investment, but Questor recommends to buy ETF Securities Agriculture (AGAP), an exchange-traded fund. Over the longer term, food prices are likely to rise because of demand and the world's population continuing to soar. In particular, corn futures sit near a 33-month high after inventories slumped in the US, the world's largest producer. Rising oil prices also make fuel alternatives such as corn-based ethanol more attractive. And corn's high cost encourages livestock producers to feed animals more wheat, boosting its demand. Since June 2009, AGAP has risen 42%, compared with the FTSE 100 up 35%. BUY

Facilities management company Carillion is also a buy for the Daily Telegraph, as it has just been awarded two contracts worth £204m. One is with Nationwide Building Society and the other with Virgin Media. The company's expecting to benefit in the new year from new contracts in the public sector, and is about to buy energy-efficiency group EAGA for £306m. The shares are trading on a December 2010 earnings multiple of 9.2 times, falling to just 8.6 next year. The prospective yield is 4.1%, rising to 4.3% next year. BUY

The Times

Public relations and advertising company Chime has spent £11m to buy sports marketing business Icon, which counts Fifa, Uefa, Wimbledon and the Ryder Cup as key clients. Icon designs and builds the hoardings that are on the sides of stadiums, while Chime sells the advertising that appears on the boards. The company has issued nearly two million new shares to pay for Icon, as well as minority stakes in the Middle Eastern arm of its Bell Pottinger unit and a market research unit called Facts International. The stock has had a strong run since the middle 2010, and investors could HOLD until they can determine the future of the company.

Staffing group Robert Walters was the most exposed of Britain's white collar recruiters to the Japanese earthquake. Its offices in Tokyo and Osaka generated £23m gross profits last year. However, the first-quarter results showed a growth in the fees across its Asian division by 29% to £19.3m, thanks to the rising demand of professional staff in China. In the UK, fees rose 10%. The group plans to open new offices in China, Taiwan and Germany. The stock trades at 16 times Numis profits forecast, compared with a 20 times sector average. BUY

The Independent

Shares in software firm Misys have quadrupled since 2008, and in the three months to the end of February 2011 revenues increased by 7% to £85m. Its order intake rose by a third. In particular, its Global Services division's order intake was up 86%. Misys also sealed a deal for the French group Sohis, which analysts expect to have a significant impact on its number from the final quarter. Jefferies puts the stock on 13 times forward earnings for 2012, leaving it at a 3% discount to peers, making it a BUY.

Restaurant chain Prezzo is also a buy for the Independent, after yesterday's results showed a 37% rise in full-year pre-tax profit and boosted its shares. The chain has planned to open 'at least 20 new restaurants' over the course of this year. The valuation is 13.1 times forward earnings for this year, falling to 11.7 times on the estimates for next year. BUY

WEDNESDAY

The Daily Telegraph

North Sea Oil producer EnQuest posted excellent results, with the total production rising by 55% in its first year. The average oil price over this year was $81.26 a barrel. The company has been hit by the supplementary tax charge levied by the government on North Sea production, this could be seen as an opportunity for EnQuest to buy North Sea assets cheaply. The shares were rated a buy for new investors at 118p in August 2010, and are now up 18%. For Questor it is a BUY.

Mobile phone company Vodafone is also a BUY. The company sold its stake in French mobile group SER for £6.8bn, and is in the process of selling its Polish operations. This means that the dividend of the group looks solid with a current yield is 5%. Vodafone is also expecting to get bumper payouts from its stake in US group Verizon Mobile, which will increase its cashflows. The shares are now up 24% compared with a FTSE that is up 18%. Vodafone is trading on a March 2011 earnings multiple of 10.6 times, falling to 10.5 next year.

The Independent

Independent insurance group Amlin has said that the initial estimates of its losses in the first three months of 2011 could be between £205m and £275m, after the earthquake that recently hit Japan, the floods in Australia and the second earthquake in New Zealand. At the same time, the group's reinsurance strategy means that it should be protected from further catastrophes. Royal Bank of Scotland has the stock on a forward earnings multiple of 7.3 times, which looks cheap, and there is a forecast of a rise to the dividend yield. But due to the uncertainty regarding full year forecasts, the Independent suggests to HOLD.

Filtration specialist Porvair has had excellent results in the first months of 2011: revenues soar by 8% - ahead of last year and up on management expectations - borrowings went down by 31% and order books have strengthen consistently. Specifically, the metals filtration division reported a sales increase 14%, microfiltration sales went up 4%, and orders for nuclear and broader energy projects got a £2m increase in March alone. BUY.

The Times

Property company Assura, once the UK's largest private GP surgery operator, has seen its rents increasing 5.6% over the past year. Assura has now returned to the property market and dividends have been restored. Its pharmacy business is doing well, and the company has paid £28m for AH Medical Properties to boost its property portfolio. The business trades at a near-10% discount to its net asset value, making it a BUY for The Times.

Independent software house Kewill has blossomed as a specialist in logistics software that can track freight across borders. Investors can count on a client base of 40.000, including DHL, FedEx, Ford, Heinz, Vodafone. Now, it has spread to Australia and other 55 countries in the form of the logistic giant Toll Group. Kewill trades at nine times its projected operating profit this year, according to IS Research. In the future, it could attract the attention of companies like SAP or Oracle. For now it is a HOLD.

TUESDAY

The Daily Telegraph

Investing in oil explorers is risky for the private investor. Explorers commonly have fewer revenue avenues and are forced to turn to institutional investors to raise capital. That can dilute private investors' holdings. Faklands Island explorer Rockhopper Exploration does expect an increase in recoverable oil in one of its wells, but the Telegraph isn't convinced. HOLD

Pork products group Cranswick saw a fall in its share price yesterday, with flat like-for-like sales in the last three months of the year. But full year results should be in line with forecasts and operating margins are expected to come in at 6.4%. Cashflow for the company should improve next year thanks to lower capital expenditure. The Telegraph reckons good management and recent investments the company will see the company grow in the next few years. BUY.

The Times

Like the Telegraph, the Times turned its attention to pork specialists Cranswick. But the picture presented wasn't as positive. Downward pressures, including slower sales and volume growth in the last three months, as well as rising pork prices - farmers are trying to recover the soaring cost of feed – are weighing heavily. For now, it is better to HOLD.

Vodafone this weekend thrashed out a deal to sell its 44% stake in SFR, one of France's three mobile networks, to partner Vivendi for £6.8bn. Its part of Vodafone's strategy to get rid of non-controlled assets. Similar moves at Polish network Polkomtel and Bharti Airtel, the Indian operator, should generate £1bn. Trading at less than 12 times this year's earnings with a dividend yield of 5%, Vodafone is not expensive. But until concerns for its operations in the troubled 'Pigs' economies – Portugal, Spain, Italy and Greece – are dismissed, it is better to HOLD.

The Independent

Temporary power supplier Aggreko has seen its shares rocket by more than a third over the past 12 months. Thanks to power supply contracts for three major sport events, the World Cup, the Winter Olympics and the Asian Games, the company got a £87m boost. It expects similar trading profits throughout 2011, in particular after the deal with the Tokyo Electric Power Company to install gas and diesel-fired power plants in the Tokyo Bay as part of the post-earthquake operations. BUY

Polling company You Gov yesterday showed a 27% rise in revenues in the first half of its financial year. Its plans to target the US market have been successful, with a strong growth and several acquisitions. Yesterday, the group also announced the takeover of Definitive Insights. UK revenues were up 20%; in Scandinavia the rise was 12%. But its prospects are being hampered by slow business in Germany, where revenues fell 12%. HOLD