Newspaper and magazine share tips

By This Is Money
Updated: 10:41 EDT, 12 December 2008

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

Share tips: All the latest tips from the newspapers and magazines.

The Times

RWS Holdings, the patent translator which he runs, draws 95 % of its sales from outside the UK, about 65% from the eurozone, and sits on £22m of cash. The short-term attraction lies with the ability of Mr Brodie, a 45% shareholder, to deliver more of the sort of earnings-enhancing acquisitions that he has in the past. In the belief that he can, at 222¾p, or nine times earnings, and yielding 5%, hold on.

Kentz, the onshore oilfield services group, failure to spend its IPO proceeds has not stopped its shares. But Kentz has yet to prove itself as a public company and sentiment on its sector is likely to remain poor until oil prices stabilise and oil companies prove that they will keep spending. Avoid for now.

The Daily Telegraph

Cisco Systems shares have fallen more than 40% over the past 12 months. However, Obama's broadband stimulus plan looks set bring in big bucks for Cisco, although full details of the plans have yet to be released. Despite the company not paying its dividend its business has high barriers to entry and the company has a good cash position. It's shares are a buy.

Investors Chronicle

Diageo saw its shares grow after news that liquor sales grew in October. The company looks best placed to sustain its market share in what is the world's biggest spirits market and where Diageo generates about 40% of its £9bn turnover. While investing in Diageo is not without risk, Investors Chronicle thinks they are a buy.

THURSDAY

The Times

Yesterdays up beat trading update from Carillion revealed this year's earnings should be 15% ahead of 2007. The shares rose 9% in response. With the prospect of double-digit earnings growth in 2009 rare for any company, Carillion, up 19½p at 239p, and yielding 5.4%, is a solid hold.

Coal of Africa (CoA), formerly GVM Metals, shares have fallen by more than 80% from their June high, heavily underperforming the 50% slide in thermal coal prices over the same period. However, volatile coal prices are still a concern. Avoid

The Telegraph

Cemex shares have been battered as the US housing market collapsed. The group's third-quarter numbers reflected the slowdown in its markets, with net sales falling 5% and earnings before interest tax depreciation and amortisation slipping 4% compared with the third quarter of 2007. With the pound looking vulnerable a global company that posts earnings in dollars is a wise addition to your portfolio. Buy.

Rio Tinto's main problem is debt, so the commitment to slash its $40bn (£27bn) of borrowings by around one quarter before the end of 2010 has to be good news. Rio is the most leveraged to a recovery in metals prices and it has some prize assets in Australia. The dividend makes the shares very attractive. Buy.

WEDNESDAY

The Times

Micro Focus's share price, flat on the year, is testimony to its resilience, as are yesterday's first-half results. Sales were ahead 24%, with operating profits up an above-forecast 38%, helped by an advance in operating margins to 43%. However, there is the belief that Micro Focus cannot be wholly immune from tighter corporate spending. Pass.

KSK Power Ventur is something of a rarity: the only one of the two dozen Indian companies floated on AIM over recent years whose shares still trade at a premium to their issue price. However, at 152½p, or 17 times 2010 earnings, no dividend in prospect and Lehman Brothers's stake in its Indian-listed affiliate creating a short-term overhang, there will be better times to buy. Pass.

The Daily Telegraph

International Power has an excellent free cash flow position. The group also operates in a relatively recession-resilient market and, with a prospective yield of 4.7%, it is attractive on this front too. International Power looks in a good position to weather the downturn and is well placed to grow earnings longer term. Its shares are a buy.

TUESDAY

The Times

Omega Insurance was 140p a share yesterday and the property and casualty underwriter became the first London-listed insurer to secure fresh capital since September's upheaval in its sector: Even so, at 148p, or yielding 4.2%, and a transfer to the main market in the offing, a recapitalised Omega is an attractive play on rising premiums. Buy

Recruitment agency, Healthcare Locums ought to be a bad investment at a time of rising unemployment but last month was the business in the company's five-year history. Healthcare Locums is expanding overseas, too, notably in the US, with international sales set to account for one fifth of next year's numbers. At 108½p, or five times 2009 earnings, and net debt falling sharply, hold on.

The Daily Telegraph

Croda International is a world leader in the manufacture of speciality chemicals. In the year to December 30 2008, pre-tax profits are expected to jump 61% to £98.13m and earnings per share are forecast to rise 23%to 48p. This leaves the shares trading on a current-year forward multiple of just 8 times. With the company ticking all the right investment boxes, Croda shares are a definite buy.