Share tips of the week

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.

Three to buy

GSK

(Investors Chronicle) GSK’s multi-faceted fight against Covid-19 – developing a vaccine, repurposing existing medicines, and supporting the UK’s diagnostics infrastructure – has “underscored the breadth of its operations and its dominance in multiple arenas”. Its pipeline is strong too, with 37 medicines and 15 vaccines in development, which should drive future growth. A forward price/earnings ratio of 13 seems “undemanding” considering its diversified revenues, research and development focus and generous dividend. 1,771p

Inspecs

(The Daily Telegraph) This Aim-listed company designs, makes and distributes eyewear frames for well-known opticians including Specsavers and Vision Express as well as other retailers such as Next and Walmart. Covid-19 has had some effect, but it “will not stop people needing to get their vision corrected” and the company’s vertically-integrated model will help margins recover quickly. Sales rose by 7% last year and underlying profits by 20%. It did not pay a dividend last year but there are hints of one in 2021. One for patient fans of smaller companies. 195p

Target Healthcare

(Shares) Despite the effects of coronavirus on the care home sector, the need for quality accommodation for older and more vulnerable people “has arguably never been greater”. This real-estate investment trust focuses on quality purpose-built care homes with single-occupancy rooms and ensuite facilities, and offers a yield of 6.2%. It is “particularly well-positioned” in a post-virus world where infection control is especially important. 107p

Three to sell

Aveva

(The Mail on Sunday) Covid-19 has forced companies to do more online than they ever expected. That’s excellent news for software group Aveva. Around 40% of sales come from software facilitating website design while the rest relates to making machinery more efficient; monitoring systems will alert supervisors if a piece of equipment is malfunctioning, for instance. The group has over 16,000 customers worldwide and joined the FTSE 100 last year. However, the global slowdown may now hamper growth and the shares have had “a good run” in recent years. Take some profits. 4,081p

JD Wetherspoon

(Motley Fool UK) This has been “a nightmare year” for the pub group. The lockdown forced it to furlough 99% of its workforce. Customers are now returning but “the environment is likely to remain challenging”. Social-distancing measures mean it has to discourage large groups and it won’t be showing football in July. Most Britons also remain nervous about dining out. Net debt is almost three times equity and founder Tim Martin recently sold £5m of shares. Avoid. 901p

Senior

(Investors Chronicle) Aerospace technology and components specialist Senior was in trouble before the virus as Boeing stopped producing its 737 Max plane. All airlines have since cut their orders, while the downturn in the car and lorry sector has hit Senior too: the flexonics division, which deals with vehicle emissions, recorded a 27% drop in sales in the first half. The group is axing another 12% of its workforce and could struggle for years. 59p

...and the rest

Investors Chronicle

More people working from home has boosted demand for software protection. Cybersecurity firm Avast is “good value for the market leader”. Buy (579p). Investors waiting to get into tabletop wargames-maker Games Workshop at a more reasonable price “might be disappointed”. Buy and hold for the long term (8,110p). The rising price of copper is good news for Atalaya Mining – buy (163p)

Shares

Defence specialist QinetiQ “continues to deliver on its growth strategy and remains a buy” (341p). Ocado has a “winning formula”, and as Britain’s first online supermarket, it enjoys first-mover advantage. “Keep buying” (1,187p). Second-hand car dealer Motorpoint suffered under lockdown, but business is picking up again. Buy (190p). The management behind Luceco, a maker of LED lighting and portable power products, “has done an exceptional job during the pandemic” and the future is bright. Buy (116p).

The Times

While Covid-19 and the West’s rift with China create medium-term risk, asset manager Ashmore should benefit from longer-term emerging-market growth. Hold (418p). “Resilient” credit checker Experian will profit from a move to a more digitised world. Buy (2,835p).

The Daily Telegraph

The Triple Point Social Housing Reit is an ethical play on property rents with the promise of a stable income. Hold (106p). Renewables fund Greencoat UK Wind has established a record of “attractive returns” and the shares are “worth tucking away” (144p).

Recommended

Julian Brigden: markets are at a huge inflexion point
Investment strategy

Julian Brigden: markets are at a huge inflexion point

Merryn talks to Julian Brigden of Macro Intelligence 2 Partners about the unwinding of the US stockmarket's super-bubble, and the risks and opportunit…
25 Jan 2022
Has growth investing had its day? Don’t be so sure
Growth investing

Has growth investing had its day? Don’t be so sure

Markets – and “jam tomorrow” growth stocks in particular – continue to crash, with some analysts forecasting a 50% drop or more. But, says Max King, a…
25 Jan 2022
A cheap investment trust with a good record
Investment trusts

A cheap investment trust with a good record

This cheap investment trust’s yield of almost 9% may look too good to be true, but should be sustainable, says Max King.
25 Jan 2022
Tax return deadline extended – but don't forget to file
Income tax

Tax return deadline extended – but don't forget to file

HMRC is being slightly more lenient about tax returns this year, but falling behind will still incur hefty fines.
25 Jan 2022

Most Popular

Shareholder capitalism: why we must return power to listed companies’ ultimate owners
Investment strategy

Shareholder capitalism: why we must return power to listed companies’ ultimate owners

Under our system of shareholder capitalism it's not fund managers, it‘s the individual investors – the company's ultimate owners – who should be telli…
24 Jan 2022
Three innovative Asian stocks to buy now
Share tips

Three innovative Asian stocks to buy now

Professional investor Fay Ren of the Cerno Pacific Fund highlights three of her favourite Asian stocks to buy now
24 Jan 2022
Ask for a pay rise – everyone else is
Inflation

Ask for a pay rise – everyone else is

As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why yo…
17 Jan 2022