Three to buy
Driver Group
Volution
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
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
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
(Shares) This ventilation products supplier is that rarest of things: a business well-positioned for the post-pandemic world trading at a reasonable price. A leading player in markets across northern Europe and New Zealand, Volution provides ventilation systems and ducts in commercial and residential settings. The virus has brought a heightened awareness of the importance of good indoor airflow and could prompt new regulations and retrofitting of existing systems. Trading remained resilient through lockdowns. On 12 times 2021 earnings and yielding 3%, the shares are a buy. 181p
(Motley Fool UK) Shares in Barclays are down by 36% this year. A dividend suspension and incoming loan losses hardly make for a rosy investment picture. Yet value indicators are flashing green. The shares trade on a price-to-book ratio of just 0.3, half the sector’s average. Barclays will eventually return to paying dividends, and the 2018 payout would yield 5.5% at the current price. The shares have fallen so far that they now offer a “wide margin of safety”. 118p
Three to sell
Royal Dutch Shell
(Investors Chronicle) When oil prices plunged below $30 a barrel earlier this year Shell slashed the dividend by two-thirds. Management also reduced capital expenditure and froze share buybacks. Shell risks becoming an unwanted collection of “stranded assets” as the economy de-carbonises, so it must invest heavily in “new energies”. Yet the oil price outlook remains shaky, depriving it of the funds it needs. The business can no longer afford the generous dividends that investors had come to expect, so sell. 1,234p
DS Smith
(The Daily Telegraph) We tipped this packaging firm in January because it seemed a cheap way to buy into the e-commerce boom, says Questor in The Daily Telegraph. Yet the Achilles’ heel of the investment case was always the £2.1bn net debt pile. Although the sale of DS Smith’s plastics division earlier this year raised funds it wasn’t enough. Management has axed dividends because of a slowdown in industrial demand, which was not made up for by the lockdown boom in online consumer shopping. With the payout gone it is time to move on. 288p
Liontrust Asset Management
(The Times) This fund manager has a strong position in the burgeoning ESG (environmental, social and governance standards) market. However, that also leaves it vulnerable to any setbacks for the sector, which some believe is overly reliant on “PR and imperfect methodologies”. Active fund managers generally are also under pressure on fees. On 21 times earnings, the shares are now “just too pricey”. Take profit. 1,400p
...and the rest
The Daily Telegraph
Many of the world’s best tech stocks are listed on US exchanges but it is still possible to buy in on the London market through investment trusts. Those wishing to top-up their tech holdings should take a look at Scottish Mortgage Investment Trust, Polar Capital Technology and Allianz Technology (899.5p; 2,120p; 2,350p). Shares in financial data business Euromoney have been punished because its events division is suffering from the coronavirus. Yet a strong balance sheet and solid core business mean it could beat expectations – buy (853p).
The Times
The pandemic has been a nightmare for London’s office owners, but the current bearishness looks overdone. Rent collection at Derwent London has proved resilient and the demand for “high-quality, flexible office space” is not going away. Buy (2,820p). PureTech, which offers anti-obesity treatments among others, has a promising drug pipeline. Buy (273p). Pub closures have been hard on beverage business C&C Group, whose brands include Magners cider, but the firm still looks a long-term winner – buy (241p).
Investors Chronicle
US biotech play Regeneron’s antibody expertise is being used in the fight against Covid-19 – a “speculative buy” ($622). Electricity generation investor ContourGlobal offers reliable cashflow in “these tumultuous times” (190p).
The Mail on Sunday
Consumer-goods packaging maker Robinson has enjoyed a boost as consumers buy more food to eat at home and spend more on cleaning products. With a 5% yield the shares are a buy (109p).
Shares
Private equity investment trust 3i contains quality businesses with reliable cash flow. A solid long-term choice (824p).
-
ONS: UK house prices hit by September slump amid Autumn Budget uncertaintyThe latest Land Registry data shows Budget rumours are hitting the UK housing market
-
Young pension savers expect to ‘need £100,000 plus a year’ for a good retirementSome under 40s are aiming high for their pensions, reckoning they will need a pot big enough to generate six figures a year in retirement income, according to new research. Those much closer to taking their pension expect to need far less.
-
Who is Jared Isaacman, SpaceX astronaut and Trump's pick as NASA chief?Jared Isaacman is a close ally of Elon Musk and the first non-professional astronaut to walk in space. Now, he is in charge of NASA
-
Three solid British stocks going cheapOpinion Ian Lance and Nick Purves, fund managers at Temple Bar Investment Trust, highlight three British stocks with strong cash flows and robust balance sheets
-
Is now a good time to invest in Barclays?Barclays' profit growth is healthy, and the stock is cheap compared with its rivals
-
Profit from other investors’ trades with CME GroupCME Group is one of the world’s largest exchanges, which gives it a significant competitive advantage
-
Key lessons from the MoneyWeek Wealth Summit 2025: focus on safety, value and growthOur annual MoneyWeek Wealth Summit featured a wide array of experts and ideas, and celebrated 25 years of MoneyWeek
-
Defeat into victory: the key to Next CEO Simon Wolfson's successOpinion Next CEO Simon Wolfson claims he owes his success to a book on military strategy in World War II. What lessons does it hold, and how did he apply them to Next?
-
Aircraft leasing companies can lift investors' portfoliosThe aircraft leasing business is a safer way to cash in on air travel and its booming demand. David Prosser explains how it works and how to access it
-
8 of the best houses for sale with fishing rightsThe best houses for sale with fishing rights – from a Georgian property on the banks of the River Derwent, County Durham, to a restored mill house in Marlborough with fishing rights on the River Kennet
