A round-up of share tips from the financial press

published 1 July 2016

800-lamb-1200 — Hobbyist farming is enjoying a new golden age

The stocks and sharesthe British press is tipping and recommending you avoid this week.

Three to buy

Belvoir

Mail on Sunday

Founded in 1995 by a former RAF wing commander, letting group Belvoir is now the biggest franchise letting group in the UK property market with more than 300 outlets. Dividends are generous and Belvoir's franchise model allows it to grow fast. Its size gives it clout in dealing with online start-ups, such as Zoopla and Rightmove. "Brexit or not," Belvoir is growing. 121p

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Cobham

Shares

The Poole-based defence specialist has been sold off heavily, but boasts industry leading positions in air-to-air refuelling and satellite communications. Defence spending accounts for 60% of its business and the market is improving, as military budgets are rising. Management has overspent on acquisitions in recent years, leaving the company too indebted, but the bad news is already factored into the share price and the dividend yield of 4.4% is now worth going for. 144p

Hostelworld

Investors Chronicle

Hostelworld was founded in Dublin in 1999 and almost half of all its bookings are for rooms in Europe. An advertising campaign to boost business is weighing on margins, but Hostelworld is the king of its niche. Its balance sheet is healthy and the company has a tantalising dividend yield of 9%. Insiders are hoovering up shares. 146p

Three to sell

Carpetright

The Daily Telegraph

Carpetright has never fully recovered from the recession in 2008. It is working on a turnaround: closing unprofitable warehouses, refreshing its logo and opening smaller shops on the high street. But sales are falling and the turnaround is costing money. At 12-times earnings, Carpetright looks vulnerable to any "Brexit-induced recession".219p

Filtronic

Shares

Filtronic sells microwave components to broadband providers. It expanded its factory in Leeds in May and the CEO is upbeat, but investors have been through 30 months of disappointment as orders have fallen. The firm was forced to raise cash in a deeply discounted share placing, leading to the departure of the former CEO. Shares are rising, but it's "a false dawn".11p

Foxtons

The Daily Telegraph

The London-based estate agent has gone from an all-time high to anall-time low in less than a year. It is almost uniquely exposed to the frothiest parts of London's housing bubble. Both its lettings business and sales look likely to take a hit. Profits could fall by as much as half, warns brokerage Peel Hunt. There's no reason to take the plunge, even at rock-bottom prices.104p

And the rest

Swipe to scroll horizontally

Abcam	The antibody specialist is in a new phase of growth (Investors Chronicle) 651p
Henry Boot	Shares are too cheap at the land bank specialist (Invest. Chr.) 209p
Iomart	The Glasgow-based firm is a good play on cloud computing (Shares) 259p
IS Solutions	Revenue is surging at the data specialist (Mail on Sunday) 116p
Majestic Wine	Acquisitions are paying off and sales are fizzing higher (Shares) 447p
Photo-Me	Sales are surging in Japan and turnover has trebled since 2014 (Shares) 131p
Schroders	The asset manager is diversified and winning new business (Inv Chr) 2,585p
Debenhams	The retail environment is tough and its turnaround is stalling (Telegraph) 70p
easyJet	How easyJet will cope outside the EU "is a mystery" (Sunday Times) 1,313p
Rio Tinto	Rio has bounced off lows but its future is hanging on China (Telegraph) 2,031p
Taylor Wimpey	Shares have halved since May, but uncertainty is too high (Telegraph) 116p

Directors' dealings

An American view

The company is expected to grow sales by 4.4% this year while much of the sector is treading water. It has a market value of $12.5bn and debt of only $250m, so it is having no trouble funding the opening of 120 shops a year. Its bulky products reduce the threat of online competition. It's "one of retailing's best long-term growth stories".