A round-up of share tips from the financial press
The stocks and shares the British press is tipping – and recommending you avoid – this week.
The stocks and sharesthe British press is tipping and recommending you avoid this week.
Three to buy
Britvic
Investors Chronicle
Investors are underestimating the growth potential from the soft-drinks maker's moves in new overseas markets. The launch of multipacks of its Fruit Shoot product in America could prove particularly lucrative, while prospects in Brazil are exciting. The firm is also ahead of the curve in reducing the sugar content of its drinks to deal with the impact of the forthcoming sugar tax in the UK. 701p
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Hikma Pharmaceuticals
Shares
Profits at the generic drug producer dipped last year due to lower-than-expected sales of gout drugs. However, the firm still received approval for 220 new products and is waiting for US approval of a generic version of asthma drug Advair. As a result, growth is expected to return this year. 2,296p
Portmeirion
Shares
The ceramic tableware provider saw sales fall by 2% in the first four months of the year, driven by weaker demand from Asia. The share price slid as a result. However, the acquisition of candle maker Wax Lyrical should help to compensate, as there are significant opportunities to increase Wax Lyrical's sales to Portmeirion's UK customers. A dividend hike is likely. 1,150p
Three to sell
De La Rue
The Times
Shares in the banknote maker yield a very attractive-looking 4.9%, but they are still better avoided. The company has recently sold off its cash processing division to a private-equity group, which was a sensible move, as it lacked the critical mass to compete in this market. However, the shares now look fully valued on a price/earnings ratio of 13 times.510p
Mothercare
Shares
Shares in the struggling baby products retailer rose after underlying profits increased by 51% for the full year its first statutory profit for five years. Conditions in the UK business have been improving. However, competition from rivals, such as John Lewis and Mamas & Papas, is fierce and international profitability remains worrying.125p
And the rest
Aggreko | Low oil prices should help this generator provider (Investors Chronicle) 1,167p |
Acal | This temperature-monitoring firm enjoys good margins (Mail on Sunday) 258p |
Corero Network Security | New business wins have boosted the cyberattack defence firm (Shares) 23p |
FairFX | Sales and customers are growing at 20% per year (Mail on Sunday) 31p |
Inmarsat | The worst is over and a p/e of 17 looks reasonable (Times) 725p |
Intermediate Capital | It's returning another £200m to investors and profits are rising (Times) 657p |
Keller Construction | The oil downturn is a headwind, but the order book is still up (Daily Telegraph) 925p |
NewRiver Retail | A £120m deal has taken its property portfolio to £1bn (Daily Telegraph) 314p |
Tate & Lyle | The sugar firm has restructured and the 4.5% yield is attractive (Times) 624p |
Mitie | Its healthcare unit made a loss and the order book has dipped (Times) 290p |
Serco | The outsourcing firm's recent update is not as good as it looks (Times) 103p |
Severn Trent | This utility yields just 3.5% there's better value elsewhere (Times) 2,265p |
Directors' dealings
The proceeds are intended to fund the roll out of its Tuzistra XR prescription cough/cold medication in the US, and the relaunch of the Moxatag antibiotic treatment for tonsillitis. The firm also aims to receive approval for two other cough/cold products in America during 2016 and is aiming for proof of concept on two more by the end of the year.
An American view
The broker market is consolidating and institutional investors are grabbing a growing slice of the market; they tend to buy and sell more than owner-operators. The shares are "a bargain" on a forward p/e ratio of just 11.
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