Our top ten stocks doing the business

By Daily Mail Reporter
Updated: 06:16 EDT, 2 July 2007

We're now halfway through 2007, and how are our Shares of the Year faring? Pretty well so far.

In January the Daily Mail city team tipped ten stocks for 2007. At the halfway stage seven are showing gains, three modest losses.

The best performers are Ark Therapeutics, ahead about 60%, uranium fund Geiger Counter, ahead more than 40% and ICI, looking good with bid action on the boil.

Of the laggards, the only one to reach our 'stop loss' level is Rank.

In January we advised selling if any stock tip falls by 20%. Though Rank could recover, the rule says cut your losses now.

The overall gain on the portfolio is a respectable 15% - well ahead of the Footsie, which is up 4.7% this year and the FT All Share Index, up just over 4%.

The outlook for the rest of 2007 is hard to call. Fear of higher interest rates has shaken markets, and the aftershocks of the US sub-prime mortgage meltdown are coming to the surface. That is taking its toll of builders, which is why our Oakdene tip has slipped back recently.

This week LSE-quoted Queen's Walk Investment wrote 47% off its US mortgage portfolios. Are others facing similar losses?

If interest rates are seen to have passed their peak, shares will look good again.

But as Bank of England Governor Mervyn King dons his hawk's wings, who can say when that will be? Go cautiously, and keep a close eye on those stop loss levels.