Three to buy
The Sunday Telegraph
The satellite firm has completed testing of its European Aviation Network, a joint venture with Deutsche Telekom to bring air travellers faster in-flight connectivity. There are competitors, but with the passenger connectivity market set to be worth $5.4bn by 2025, there is plenty of business to go around. The shares have slipped by a third after a bumpy year, but this is a good entry point. 652p
The Mail on Sunday
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Rising gas and electricity tariffs could mean millions of pounds in extra costs for some businesses. Inspired Energy serves firms by buying power on their behalf and helping them to boost energy efficiency. Profits for 2016 are expected to soar 40% to £6.3m, yet the shares are "seriously undervalued". Buy now before rising energy prices and more new customers give it a boost. 12.75p
The Daily Telegraph
A security breach at TalkTalk last year led to the loss of 42,000 customers and saw its share price tumble. The 8.9% dividend yield now looks "too good to be true" and a cut is widely expected. However, expectations are now so low that it could surprise on the upside. Healthy cash flow and the arrival of Sir Charles Dunstone as chief executive mean the shares could soon "start to gallop again". 167.5p
Three to sell
Shares in the North Sea oil producer have risen 40% since Shares tipped them in December on the back of a takeover offer from Israeli energy group Delek. The 12% bid premium has disappointed some shareholders, but a rival bid is unlikely, and with Delek already holding a 19.7% stake in Ithaca the deal looks likely to go through. Investors would do well to take profits now. 118p
Shares in the cake maker slumped 15% last month after it warned that profits would be 10% below expectations, but there could be further downside. The rising cost of ingredients may force Premier to raise prices, but that could be tricky when hard-pressed consumers are already trading down to cheaper, non-branded goods. Factor in high debt levels and the shares are best avoided. 39p
The software company makes products that keep businesses safe from cyberattack. Sophos has made three acquisitions since it floated in mid-2015, of which the latest is a $100m deal for Virginia-based Invincea. But with neither firm making much profit, the market must "take a fair amount on trust". The deal may still work, but "progress may be limited" for the time being. 280p
And the rest
Two new acquisitions at Glanbia highlight the nutrition sector's growth potential (€15.81). US-based Diversified Gas & Oil has a forecast 5.5% yield (59.5p). Kettering-based Alumasc's shift into premium building products has transformed its prospects, but the market is yet to cotton on (174.5p). Hungarian low-cost airline Wizz Air could prove more resilient than rivals Ryanair or EasyJet (1,583p). Marketing firm Jaywing has exciting prospects (34.5p). Healthcare marketer Cello has the US biotech sector in its sights (101p).
Ground work specialist Van Elle is well placed as housebuilding and infrastructure spending rises (111p). Alternative lender Paragon has beendiversifying its revenue streams and looks like a good growth pick (412p). Retailer Games Workshop makes nearly three-quarters of its sales overseas, making it a significant beneficiary of the pound's weakness (844p).
Housebuilder Redrow's order book is still growing nicely, suggesting that any "catastrophe in the housing market" is still a way off (470.5p). Irish distribution conglomerate DCC boasts an impressive growth record "with more to come" (6,735p). Shares in St Modwen Properties trade on a sizeable discount to net asset value (327p). Some have raised doubts about packaging group RPC's latest purchase, but it has an excellent record of making its acquisitions a success (998p).
LXI Reit is a newly established real-estate investment trust that aims to provide inflation-protected income and capital growth by investing in UK commercial property. It will not undertake any development activity itself, but will buy property that's already let on long leases, typically 20 to 30 years, with regular rent increases built in. Assets it plans to buy include industrial and retail properties, offices, hotels, social housing and student accommodation. It will focus especially on "discount retailers, budget hotel operators and last mile' distribution units".
As yet it owns no property, but its investment advisers are "confident that sufficient suitable assets will be identified, assessed and acquired" within six months of listing. Trading should start on 27 February.
An American view
Iowa-based Casey's General Stores "occupies an interesting niche", Brian Rogers, chairman of T. Rowe Price, tells Barron's. It runs convenience stores and petrol stations in 14 Midwestern states. Half its 1,940 shops are in towns with fewer than 5,000 people, and with other firms loath to enter small markets, Casey's "effectively has a competitive moat". Its best business is pizza delivery. Casey's is "inexpensive, as retailers go", and boasts a "clear growth trajectory".
The plan is to expand into small towns in Arkansas, Ohio and Tennessee. It typically buys shops it can remodel and is adding around 60 a year to its portfolio. Casey's owns almost all of its properties and has a solid balance sheet. Rogers estimates that earnings per share could climb by 14% in the year to May 2018.
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