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
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(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).
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Which UK region has the most in savings? Average savings by areaThe amount people have in their savings differs from region to region in the UK. How does your nest egg compare to those living nearby?
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Doug and Mary Perkins: Specsavers’ clear-sighted foundersHelped by the deregulation of the sector in the 1980s and brilliant advertising, Mary Perkins and her husband Doug have taken Specsavers to the top of the optometry market
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Investment opportunities in the world of Coca-ColaThere is far more to Coca-Cola than just one giant firm. The companies that bottle and distribute the ubiquitous soft drink are promising investments in their own right.
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Streaming services are the new magic money tree for investors – but for how long?Opinion Streaming services are in full bloom and laden with profits, but beware – winter is coming, warns Matthew Lynn
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Trainline: a cheap cash machine for investorsOpinion Trainline’s shares have slumped owing to concerns about growth, but the sell-off seems overdone
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Look to British stocks to lead the charge as the Magnificent Seven falterOpinion Gervais Williams, fund manager, The Diverse Income Trust, picks three British stocks where he'd put his money
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'Pension funds shouldn't be pushed into private equity sector'Opinion The private-equity party is over, so don't push pension funds into the sector, says Merryn Somerset Webb.
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Greg Abel: Warren Buffett’s heir takes the throneGreg Abel is considered a safe pair of hands as he takes centre stage at Berkshire Hathaway. But he arrives after one of the hardest acts to follow in investment history, Warren Buffett. Can he thrive?
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Who will be the next Warren Buffett?Opinion There won’t be another Warren Buffett. Times have changed, and the opportunities are no longer there, says Matthew Lynn.
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Will Comstock crash – or soar?Opinion The upside for Comstock, a solar panel-recycling and biomass-refining group, dwarfs the downside, says Dominic Frisby.
