Newspaper and magazine share tips

By THIS IS MONEY
Updated: 10:21 EDT, 11 September 2009

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.

Pulling in the punters: Real ale is boosting Greene King

FRIDAY

The Times

Yesterday's full-year figures from Genus reported a 15% rise in adjusted pre-tax profits to £32m on revenues up 14% to £280m. At 631p or 17 times earnings, hold on.

Hilton Food is a middle man than food producer. It doesn't own its abattoirs, which gives its food source location flexibility and has expanded overseas to Ireland and Eastern Europe. But at 180, or ten times earnings, the shares are up with events. Hold.

The Daily Telegraph

Eventually the market is going to wake up to the quality of BG Group's assets. After this week's news from Brazil, that moment is drawing closer. The shares are up 10% since its initial recommendation on January 5 and it remains a core energy holding. Buy.

It is inevitable that there would be takeover speculation surrounding Gulfsands Petroleum after ots 50-50 partner Khurbet East in Syria was snapped up by the Chinese. The shares are up 32% since their recommendation on April 10 and the stance remains buy.

Investors Chronicle

There are still nervous times for big tenanted pubs companies, and especially Enterprise, and the mood will not have been helped by news that some directors have sold almost £1m worth of shares since 20 July. Those who've enjoyed a bounce in Enterprise's share price should call time and sell.

THURSDAY

The Daily Telegraph

Shanks made its money from muck and the amount produced in its markets is about to increase. Despite recent gains, the shares are still yielding 3.2% and the stance remains buy.

It is just seven weeks since IG Group's final results, so yesterday's updates was unlikely to be surprising. In the three-month period to the end of August, revenues were approximately £68m compared with £58m in the equivalent quarter in the prior year. The stance on the shares is now hold.

The Times

First-half numbers from Prezzo provided a useful insight into the travails of the restaurant sector. In the context of the industry it isn't doing too badly but, like its rivals, it has had to resort to heavy promotional activity to attract customers. Hold.

Apart from a short-lived surge during the dot-com boom, shares in the IT consultancy have largely gone one way from its 250p issue price. At 31p, or six times earnings, this is a 'speculative buy'.

Shares Magazine

Confectioner Cadbury has been the subject of intermittent bids for at least 20 years. The Kraft bid a sighting shot. To succeed Kraft will have to offer £10 a share, there may even be a counter bid from the Nestle/Hershey consortium. Its rivals will be reluctant to forgo an opportunity to acquire its attractive brands. Buy.

WEDNESDAY

The Times

Greene King is benefiting from the boom in real ale, with a 12% jump in volumes of its own-brewed beers led by a strong performance from Old Speckled Hen. But in truth, the real barometer of the firm's financial health lies in its pubs. And here again, the Suffolk-based company is beating the competition. Like-for-like sales are up but the outlook isn't clear with unemployment hitting consumers in the pocket. Hold on.

Ashtead nearly went bust six years ago but first-quarter figures show the plant hire group is handling recession with aplomb. Strong cash generation has enable the company to pay off £57m of borrowings, bringing net debt down to £873m. But the tough winter period, when hiring of construction equipment hits a low, lies ahead. Although Ashtead is well-prepared with cost-cutting tactics. Shares are up more than 60% since July. Buy.

The Daily Telegraph

Pure gold companies trade at the highest multiples in the market – and this is certainly true for Randgold. The shares are now on a December 2009 earnings multiple of 77 times. The future is bright for the company as it expects production to grow substantially and is currently in the process of acquiring Democratic Republic of Congo-based Moto Goldmines and AngloGold Ashanti. However a high rating and split sentiment surrounding the shares means the stock is a hold.

Peter Hambro Mining is looking like a better buy, up an impressive 42% in just nine weeks. However the shares still appear significantly undervalued, trading on a 2009 earnings multiple of just 17.1 times. There is an element of risk in the Russian market, but places in which Randgold operate are hardly much safer. When market conditions show a significant improvement, recent acquisition Aricom will once again be spun out of the group, unlocking significant value. Buy.
Note: Peter Hambro does not currently pay a dividend.

TUESDAY

The Daily Telegraph

Costa: Keeping Whitbread sweet

Overall sales at Costa coffee have soared by 18%, reaping benefits for owner Whitbread. The company appears to be stealing market share from Starbucks, having spruced up its cafes and opened 88 new outlets. On the flipside, Premier Inn has seen slower sales and weaker numbers than last summer. But special offers are giving it a boost. Whitbread has excellent growth prospects for the medium to long term. Hold.

Second-half sales at budget clothing chain Primark are up a stonking 9%, the kind of figure other retailers would kill for during the downturn. Having cracked the UK market Primark has set its sights on the continent, with promising signs on the Spanish market. So what about the rest of AB Food's business? Twining tea, Silver Spoon and Allied Bakeries are performing well but questions remain over their consistent growth. Worth holding.

The Times

At AIM-listed Healthcare Locums, supply rather than demand is the perennial problem with a shortage of doctors, physiotherapists, radiographers and social workers. The firm has become the market leader in its niche, with underlying first-half profits up 38% to £27m. Potential budget cuts in Britain remain a concern, but the company contends that the NHS is likely to turn increasingly to agency locums rather than take on full-time staff. Hold.

Lupus Capital's biggest activity is making building products such as locks, handles and hinges for windows and doors. Should new-build activity pick up, Lupus is strongly geared to recovery. Shares gained 32% since it emerged the former chairman has raised his stake to more than 10%. But with net debt at £120m, the outcome of the new board's strategic review remains unclear. This is only a buy for the brave.