Three to buy
Auto Trader
The Sunday Times
Sales of new cars are slowing, and analysts fear knock-on effects for Auto Trader's used-car operation. Yet "even if new car sales fall, used cars still need to be sold" and the firm's website dominates the market. The shares are expensive on 30 times last year's predicted earnings, but 65% margins look "almost too good to be true" and falling car sales won't stall its progress. 434.75p
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CityFibre Infrastructure
Shares
This fibre-network builder should benefit from the drive to bring superfast broadband to cities such as Sheffield and Bristol. Significant acquisitions in 2016 saw revenue more than double to £15.4m. With the regulator, Ofcom, demanding more competition and major mobile operators vying for fibre network access, the shares are a good way to cash in on the growth of "gigabit cities". 66.5p
Lloyds Banking Group
The Mail on Sunday
Lloyds has put the bad old days behind it to become a "solid, back-to-basics bank, focused on UK retail and business customers".The government sold its remaining stake last month and "the end is in sight" for the payment protection insurance imbroglio. Growth is solid enough to put the shares on a 6.4% yield. 69.25p
Three to sell
Berendsen
The Daily Telegraph
The Telegraph tipped this laundry services business last month at 797p, and the shares have since climbed more than a third following a hostile bid from French rival Elis. Further upside seems unlikely in the short term after such a big leap and Berendsen now looks fully valued. There is also the risk that the shares could fall back if the bid fails. Investors would do well to take profits now. 1,082p
IAG
The Times
Shares in British Airways' owner have proved remarkably resilient despite the IT disaster that left passengers stranded.The market seems to accept the explanation that this was a one-off, but previous outages at big banks led to hundreds of millions in costs to fix broken systems. If the bill increases it is a "racing certainty" that the dividend yield will slip. Avoid for now. 603.5p
Wentworth Resources
Investors Chronicle
First-quarter results show that production at Mnazi bay the east African driller's main gas asset in Tanzania is going to plan. However, Wentworth's business partner, state oil company TDPC, is struggling to meet its financial obligations. Cash flow is under strain. Add in heightened political risk as the Tanzanian government gets tough with foreign firms, and it is a sell. 22p
And the rest
The Daily Telegraph
Go-Ahead
(1,813p)
Caledonia Investments
(2,881p)
Severn Trent's
(2,534p)
Investors Chronicle
Pennon
(933p)
TP Group
(6.5p)
easyHotel
(94.5p)
Brooks Macdonald
(2,481p)
Shares
BlackRock Emerging Europe Trust
(334p)
Abzena
(38.75p)
Headlam
630p)
The Times
Gan
(26p)
G4S
(325p)
J Sainsbury's
(279.25p)
Pigit
(407p)
Watkin Jones
(182.25p)
A German view
Bijou Brigitte has over 1,000 shops in 23 countries, mostly in Europe, where the economy is strengthening. Consumer spending is expected to increase by 1.5% in Germany this year, while store renovations in Spain and Italy are also helping. A recovery in the eurozone also implies a stronger euro, which will lower purchasing costs much of the merchandise is acquired in US dollars.
IPO watch
The company is already listed in Toronto and hopes to raise £1.45m on London's Aim by placing 20 million shares at 7.25p. Reasons for listing include better liquidity and improved ability to access funding from international markets. The shares are expected to begin trading on 26 June.
