LONDON (ShareCast) - ARM Holdings has had a rough time after Apple, one of its biggest customers, posted disappointing iPhone sales. House broker Goldman Sachs took ARM off its “conviction buy” list. But longer-term prospects look rosier, the Sunday Times’s Danny Fortson said in his Inside the City column. Arm is eyeing new markets. US chip designer Applied Micro Circuits has announced plans to make ARM-based server chips. There isn’t much to show yet but executives at Facebook have predicted Arm-based servers will be a quarter of the market in five years. This makes Goldman’s prediction that ARM's cash returns could double by 2017 seem feasible.

Buy shares of Action Hotels, the Mail on Sunday’s Midas column recommended. The company owns and manages budget and mid-market hotels in the Gulf, where that market is underserved. With economic growth of 4% a year on average predicted for the region until 2018, Action is in a market where demand is growing but supply is limited. It works in partnership with well-known brands such as Premier Inn to gain custom. The company’s 1,004 rooms will rise to 2,500 by 2017. The management team is experienced and has lots of regional contacts.

Eckoh shares have gained 75% since Midas tipped them in July, the Mail on Sunday column said. The company helps companies such as National Rail and the NHS to handle consumer enquiries more efficiently and helps businesses take payments more securely. It announced two big contracts last month and three of its largest contracts have been renewed. Chief executive Nik Philpot is confident about growth. Hold if you have the shares already and consider buying at 35p if you have not done so, Midas said.

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