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
Cambian
The Times
This operator of hospitals and care homes had one of the worst initial public offerings in years. It floated in 2014 at 225p, but today the shares are down by almost 70%. The firm racked up debt when making acquisitions and almost breached its banking covenants earlier this year. However, the worst looks to be over and a recent trading statement was encouraging, making it a highly speculative buy. 68p
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Vesuvius
Investors Chronicle
Steel is a highly cyclical business and despite all the bad press about the industry in Britain in recent months the cycle could be about to turn up. If so, Vesuvius, which makes components for steelmakers and foundries, stands to benefit. The shares trade on a generous 4.9% dividend yield. 332p
Vodafone
Shares
Worries that the mobile giant might not be able to sustain its dividend are easing. Analysts think that there should be fewer pressures on cash flow as the firm's £20bn programme of investment in network infrastructure comes to an end. Dividend cover should improve to 1.5 times earnings by 2019. 231p
Three to sell
Atlas Mara
The Sunday Times
The start-up bank set up by former Barclays Chief Executive Bob Diamond was touted as a premier pan-African business in the making. Results so far haven't been encouraging. Diamond wants to buy Barclays' African operations and merge them with Atlas Mara, but this deal is far from certain. If it doesn't go ahead, Atlas Mara will continue to struggle.$4.50
Kingfisher
Shares
There's much to admire about the owner of B&Q, Screwfix and France's Castorama.Chief Executive Vronique Laury's plans to transform its profitability have been bearing fruit. But competition is set to get tougher especially for B&Q, since Australian firm Wesfarmers recently bought its rival Homebase and is investing heavily. Time to take profits.366p
PZ Cussons
The Daily Telegraph
Shares in the maker of Imperial Leather and Carex have rallied strongly since January. However, the economic outlook for Nigeria, which accounts for a quarter of its profits, is uncertain. A price/earnings ratio of 20 looks too expensive, given sales and profits are likely to be flat. What's more, debt is rising due to spending on acquisitions, increasing the risks.337p
And the rest
Angle | The firm's blood test for finding cancer has huge potential (Mail on Sunday) 66p |
Associated British Foods | Rising sugar prices should boost this food group (Daily Telegraph) 2,867p |
Augean | The hazardous-waste firm is seeing demand grow (Investors Chronicle) 49p |
Eland Oil & Gas | It's risky, but this Nigeria-based oil firm is set to quadruple output (Shares) 27p |
Goals Soccer Centres | Investment by the football centre operator could spark a rerating (Shares) 116p |
OneSavings Bank | A better capital position should allow the bank to increase lending (Shares) 326p |
Purplebricks | Estate agents' shares are down, but this online firm is soaring (Sunday Times) 141p |
Tullett Prebon | The purchase of ICAP's voice-broking arm is likely to go ahead (The Times) 314p |
S&U | Demand for motor finance is rocketing at this lender (Invest. Chronicle) 2,335p |
ULS Technology | The house-moving services provider can keep expanding (Invest. Chronicle) 71p |
WYG | The building consultation group's order book stands at £150m (The Times) 138p |
Eckoh | The payments firm is doing well, but it's priced for perfection (Shares) 53p |
Sainsbury | Competition from discounters is fierce (Daily Telegraph) 251p |
Directors' dealings
An American view
Half the group's revenue stems from North America. The US housing market looks solid, with new home sales recently hitting an eight-year high. Consumer spending is healthy too. Whirlpool has a presence in Asia, South America, notably Brazil, and the Middle East; it has also embarked on a joint venture in China. It is on a 2016 price/earnings ratio of 12 and yields 2.3%.
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