LONDON (ShareCast) - Personal Group pays dividends every quarter, has grown consistently since it was founded 28 years ago and provides a service to lower-income workers nationwide. The shares yield more than five per cent and the firm has appointed a new chief executive, Mark Scanlon, with a brief to expand the business. So far, so encouraging.Personal Group’s range of products offers companies a handy way of making employees feel wanted, even when pay increases are low or non-existent. Perks help attract new workers and retain staff and more businesses than ever are looking at these types of benefits in today’s tough environment. Personal Group offers benefits primarily to blue-collar employees such as postal workers, train drivers and couriers. There are three core products – cash plans, which offer policyholders extra money if they have an extended stay in hospital, convalescence plans, to be used on return from hospital, and death benefits, which pay out lump sums to close family in the event of a worker’s death. Next month, Scanlon will unveil his strategy. The focus will be on growth, but Personal Group’s core offering will be unchanged. Customers will continue to receive attentive service and shareholders will still receive healthy dividends. Analysts expect profits to be slightly lower in 2012, reflecting investment in the future, but Personal Group is highly cash-generative so the dividend on shares now trading at 346½p is forecast to rise from 17.4p to 17.8p, payable in four equal instalments next year. Midas is of the following opinion: “Personal Group has grown steadily since the 1980s and is set to increase its firepower over the next few years. The shares offer an attractive blend of income and excitement. Buy.”

Titan Europe’s shares have risen 171% from 45p to 121¾p since Midas recommended them in July 2010, not least because last month the board recommended a bid from Titan Inc of America, valuing the company at 128p. The two companies were part of the same group until Titan Europe was spun out of Titan Inc in 2004. Since then, they have maintained a close relationship and the US firm still owns 22% of its European playmate. Yet Titan Europe has another large shareholder, German wheel-maker Mefro, which on August 10 raised its stake by 66,440 shares from 26.9% to 27%. Mefro has not declared whether it is in favour of Titan Inc’s bid but its purchase prompted some City followers to wonder if the Germans are plotting a counter-bid. Many brokers believe Titan Inc’s bid is cheekily low and its construction as an all-share transaction is irritating. The timing of the offer is certainly intriguing. On July 17, Titan Europe confirmed it had received an approach from the US. On July 24, Titan Europe issued a serious profits warning and, two days later, Titan Inc divulged the terms of its offer. On August 10, independent Titan Europe directors recommended the bid and in early September shareholders will receive an offer document explaining why. If no other bid emerges, they will have between 21 and 60 days from the posting of that document to consider their options. If Titan Inc receives the 51% acceptance it needs during that period, shareholders will have a further two weeks to sell in the market if they want. For the Financial Mail on Sunday´s Midas column: “Readers who bought in 2010 have been well rewarded. They should keep hold of their stock and watch events closely. There is plenty of time to sell in the next few weeks and just a chance Mefro will up the ante.”

AB

Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE