The week's share tipsters at a glance - 28 June

published 28 June 2012

Swipe to scroll horizontally

Adv. Comp. Software (ASW)Aim	Shares	The business management software firm grew revenues 10% to £98m and has 57% recurring revenue. The shares are cheaper than rivals on a forward price/earnings (p/e) ratio of 12.4.	58p/38p*54p
Ashtead (AHT)Commercial services	The Sunday Telegraph	This construction equipment-hire firm is benefiting from a trend towards renting through the downturn. Full-year profits are 6% ahead of expectations. Buy.	276p/98p252p
Central Asia Metals (CAML)Mining	Investors Chronicle	Getting output from this copper miner’s Kazakhstan plant should be simple and cheap, with 5,000 tonnes expected this year and 10,000 next. A 2013 p/e of less than three looks too cheap.	107p/54p80p
CLS Holdings (CLI)Real estate	Investors Chronicle	The property firm is benefiting from an unusually wide gap between rental yields (7%) and the cost of debt (3.8%), and looks cheap at a 36% discount to forecast net asset value (NAV).	691p/501p670p
Costain (COST)Engineering and construction	The Times	The engineering services firm has £100m cash in the bank and its focus on large clients, such as Crossrail, means that 90% of the workload is in repeat orders. Buy on further weakness.	248p/174p217p
Domino’s Pizza (DOM)Retail	Investors Chronicle	Poor weather this year, along with the summer’s sporting events, should help this fast-food chain post healthy figures at 23 July first-half results and could lead to a share-price boost.	527p/381p493p
Entertainment One (ETO)Distribution/wholesale	Shares	The entertainment distributor has growth prospects in Asia. A 28% fall since December is a buying opportunity on a current year p/e of nine.	209p/129p151p
Gulf Keystone (GKP)Oil and gas	Investors Chronicle	A 60% share-price fall since February looks overplayed as this oil explorer has had success at its Shaikan discovery in Kurdistan. Buy on a 33% discount to NAV.	450p/87p168p
H&T Group (HAT)Retail	Investors Chronicle	Despite margin pressures in its gold business, this pawnbroker has hit trading estimates and the shares trade at an unwarranted discount to rival Albemarle on a forecast p/e of seven.	415p/240p260p
Intl. Pub. Partnerships (INPP)Closed-end fund	The Daily Telegraph	This infrastructure fund has raised £200m to invest in schools and power transmission. It’s an income play on a prospective yield of 5.2%.	122p/111p117p
Liontrust (LIO)Div. financial services	The Times	Liontrust has grown funds under management from £1bn in 2009 to £2.1bn now and is targeting £7bn in the next few years. It’s a speculative punt on a sector discount p/e of 12.5.	125p/57p97p
MDM Engineering (MDM)Engineering and construction	Investors Chronicle	This Africa-focused mining engineer has had a strong 2012, with a robust cash position and significant project pipeline. A prospective p/e of nine looks undemanding with a yield of 5%.	149p/93p146p
Melrose (MRO)Misc. manufacturing	The Daily Telegraph	This turnaround firm, which has created £1.5bn of shareholder value since 2003, is in talks over a £1.3bn deal for German firm Elster Group. Buy on a 2012 p/e of 12.1 and yield of 3.5%.	446p/265p371p
NCC Group (NCC)Computers	Shares	Buy this IT testing and security specialist ahead of 5 July finals, as a share-price fall on a botched software project is overplayed and a modest p/e of 14.9 should soon correct itself.	922p/580p750p
Real Good Food Co (RGD)Aim	The Times	A deal with Mauritian sugar producer Omnicane will help this food wholesaler secure supply and reduce a £25m debt pile. The shares look undemanding on a p/e of eight. Buy.	74p/34p57p
Restaurant Group (RTN)Retail	Shares	The Frankie & Benny’s owner looks set to pay a special dividend of up to 25p per share within 12 months. Added to the 11.5p ordinary payout, that would mean a yield of 12.5%. Buy.	313p/238p292p
Rio Tinto (RIO)Mining	The Daily Telegraph	This miner is spending $4.86bn to expand iron-ore production, especially at its Australian Pilbara mine serving the growing Asian market. The shares look cheap on a 2012 p/e of seven.	4,624p/2,637p3,095p
Rolls-Royce (RR)Aerospace/defence	The Times	This power systems manufacturer has an order book of £62bn, with over half in more steady and visible service contracts. A 2012 p/e of 15 isn’t cheap, but the shares remain attractive.	868p/519p840p
Serica Energy (SQZ)Aim	Shares	This North Sea oil firm looks undervalued and could benefit from the continued merger and acquisition speculation in the region following purchases by Cairn Energy and Premier Oil.	47p/14p23p
Utilitywise (UTW)Environmental control	Shares	The energy consultant is benefiting from growing demand to reduce energy costs, with 1,000 new customers every month. Pre-tax profit is forecast to nearly treble between 2012 and 2014.	64p/60p62p
Weir Group (WEIR)Machinery diversified	The Times	The pump maker’s mining business (52% of 2011’s operating profits) is benefiting from strong aftersales, which could help it hit 2012 forecasts. On a p/e of ten, there should be further to go.	2,254p/1,332p1,558p
Home Retail (HOME)Retail	Investors Chronicle	Use a 25% share-price rise to sell the Argos and Homebase owner. Good news on Argos looks overplayed and Homebase is facing tough conditions and saw like-for-like sales drop 8.3%.	167p/68p93p
Lloyds Banking (LLOY)Banks	Shares	This bank has £23bn exposure to the five weakest eurozone countries, including £6.5bn to Spain, where bond yields have hit record highs and a default may be on the cards. Sell.	51p/22p30p
Mulberry (MUL)Retail	The Daily Telegraph	This luxury goods group has rocketed since 2009 and the shares now trade at eye-watering levels on a March 2013 p/e of 27.7. There’s growth potential, but the market looks fickle. Avoid.	2,500p/1,263p1,566p
TalkTalk Telecom (TALK)Telecommunications	Shares	Broadband price wars and delays to TV service YouView could hinder this telephone and broadband provider’s growth plans and earnings forcasts. Use a 21% three-month gain to sell.	180p/116p170p
Vitec (VTC)Misc. manufacturing	The Mail on Sunday	Shares in this firm, which makes the high-tech camera equipment used to film football games, have risen 78% since August 2008. Investors should look to sell 50% and take profits.	700p/488p660p
Row 26 - Cell 0	Row 26 - Cell 1	Row 26 - Cell 2	* 52-week high/low