Sunday newspaper share tips

By THIS IS MONEY
Updated: 03:57 EDT, 11 June 2007

Each week we round up the Sunday newspaper share tips and the views of the mid-week tipsters too.

For the Mail on Sunday's stock picks read the Midas.

And check out the mid-week share tips.

Sunday Telegraph

Shares in pharmaceutical giant GlaxoSmithKline look cheap after coming under pressure over safety concerns regarding its diabetes drug Avandia.

Following the release of a study in the US which linked the drug to an increased risk of heart disease four weeks ago, investors have knocked more than £9bn off its market value. Shares regained some value over the last week after analysts and investors decided the firm escaped relatively unscathed after a hearing by the US's Food & Drug Administration.

The FDA decided Avandia will now have to carry warnings, but analysts believe this will not have much of an impact on US usage. Investors should not forget the company has a promising pipeline of new drugs. Keep buying at 1296p.

While most property players would reject suggestions that the commercial property market is set to slump, there are enough concerns to warrant looking for firms with alternative options. Workspace, which specialises in providing flexible office space in London, has such a fall-back position.

The group provides offices to small and medium-sized companies, usually on short-term leases. This allows the group to conduct regular rent reviews while actively managing its estate. But the real opportunity comes from the potential to develop parts of the estate for residential use, which would release considerable value. Worth a look at 427¼p.

A number of firms have benefited from the Government's commitment to the Private Finance Initiative and investment in schools and hospitals. RM Group, which provides information technology to the country's schools, is one such company. It continues to win contracts as part of the Government's Building Schools for the Future programme, and is part of a consortium that has been named preferred bidder by Islington Council to build and equip eight new secondary schools, estimated to be worth around £10m.

It has also been named as the IT provider for a similar project with Leeds City Council - worth some £25m. It seems inevitable - given the firm's market leading position - that it will keep securing similar deals, providing a steady stream of work over the next few years. Buy at 201p.