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
Bunzl
(The Sunday Telegraph) This distributor often flies under the radar, but its deliveries of medical equipment, cleaning kit and disposable cutlery were vital to keeping the economy going during lockdown. First-half underlying sales grew by 5% Profit margins are expected to expand. Management “prudently cancelled” the dividend but a robust balance sheet suggests that the payout drought will be short. Bunzl will also be keen to resume its usual hunt for “bolt-on” acquisitions. 2,198p
Knights
Subscribe to 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) Lockdowns have disrupted the traditional legal partnership model, creating new opportunities for this legal and professional services business to lure high-flying lawyers into the fold. Specialising in corporate and commercial law, and boasting about 18,000 clients, Knights looks set to emerge from the downturn in a relatively strong position thanks to cash-saving measures such as deferred spending and staff salary cuts. Expansion into regional legal markets has brought greater diversification and leaves room for further growth. Buy. 398p
Roche
(Investors Chronicle) This “Swiss healthcare giant” is at the forefront of the battle against Covid-19 thanks to its diagnostic and antibody tests. It is also examining six different treatments for the disease “across 28 clinical trials”. The group also boasts a promising drug pipeline of non-Covid treatments, the fruit of research and development spending equivalent to 11% of revenue last year. A dependable 3% forward dividend yield is also attractive. CHF327.50
Three to sell
Hammerson
(Motley Fool UK) The pandemic has left this shopping-centre owner scrambling for cash. Rent collection in the current quarter sits at over 30%, leaving Hammerson to turn to the government for a loan that will only increase leverage. The shares fell again this week when it confirmed that it is looking to raise more funds through a rights issue. The group was already struggling before the virus struck and the future of bricks-and-mortar retail is deeply uncertain. The shares are cheap because the firm could “follow Intu into administration”. Avoid. 58p
ITV
(The Sunday Times) A proposed government ban on junk food advertising before the watershed is more bad news for the TV industry. Advertising at ITV halved “overnight” when the virus struck despite higher viewership, with severe disruption to the production of programmes. This summer’s schedule is thus full of repeats. Its new Britbox streaming venture is entering a fiercely competitive market. The shares have slumped by 60% this year but still aren’t a bargain. Avoid. 57p
Microsoft
(Interactive Investor) This “tech star” has led the market rally, gaining 60% over three months to hit an all-time high last month. Microsoft’s cloud-computing services are a natural winner from the rise of distance-working. But the tech rally may be overdone. Apple, Amazon and Microsoft now make up one-third of the Nasdaq 100 index, while a rating of more than 35 times earnings leaves Microsoft vulnerable to all but perfect news. Take profits. $203
...and the rest
The Daily Telegraph
Real estate investment trust AEW UK Reit shows that unglamorous property – past investments include a Belfast retail park and regional industrial units – often produce better returns. It offers an 11% dividend yield with “no prospect” of a cut. Buy (73p).
Investors Chronicle
Computer services firm Computacenter has been a big winner from the new demand for remote-working. Highly cash-generative and with zero net debt, the stock looks a bargain on a forward price/earnings multiple of 18 (1,942p). Topps Tiles is expanding in the commercial market and government efforts to juice the property market, which will mean more renovations, provide an extra fillip. Buy (43p).
The Mail on Sunday
Fantasy game store Games Workshop has grown into a “£3bn behemoth” worth more than Marks & Spencer.Lockdown has re-acquainted many people with the pleasures of an “evening-in” with a board game but the shares are pricy, so “buy on weakness” (8,780p). The world will be “elbow deep in Dettol” for the foreseeable future, so hold consumer goods giant Reckitt Benckiser (7,706p).
Shares
Shares in The Coca-Cola Company have lagged the wider rally, presenting a rare opportunity to buy into a “defensive colossus” ($48.48).
The Times
Catering giant Compass is languishing amid the slow global recovery. This high-quality operator will one day thrive, but “not yet”. Avoid (1,069p).
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
Which investment trusts could benefit from lower interest rates?
As vehicles for long-term investments, many investment trusts were hit when interest rates rose in 2022. With interest rates expected to fall by the end of the year, could now be the time to invest in one of these unloved sectors?
-
How to protect your personal and financial data from cyber attacks
M&S and the Co-op are the latest retailers to suffer from cyber hacks but consumers also need to be vigilant
-
Unilever braces for inflation amid tariff uncertainty – what does it mean for investors?
Consumer-goods giant Unilever has made steady progress simplifying its operations. Will tariffs now cause turbulence?
-
'Technology will determine tomorrow’s top stocks in emerging markets'
Opinion John Citron, investment manager of the JPMorgan Emerging Markets Investment Trust, tells us where he’d put his money
-
Two ways to tap into monopoly profits from airports
Most investors can’t get their hands on airports. Here are two ways you can
-
Three British mid-caps that could make 'attractive' investments
Opinion Charles Luke, manager of the Murray Income Trust, highlights three UK-listed mid-cap companies, as he tells us where he'd put his money
-
Fat profits: should you invest in weight-loss drugs?
The latest weight-loss treatments could transform public health and the world economy. Should you invest?
-
How investors could profit from Ramsden Holdings' four-part growth strategy
Ramsdens Holdings offers a diversified set of financial and retail services and a juicy yield, says Dr Michael Tubbs
-
How to invest in the booming insurance market
The insurance sector is experiencing rapid growth after years of stagnation. Smart investors should buy in now, says Rupert Hargreaves
-
Out of America's shadow: Why Trump's tariff chaos may be good for non-US stocks
Opinion Upending global investment and trade could benefit other countries at the expense of the US market, says Cris Sholto Heaton