Three to buy
International Biotechnology Trust
(The Mail on Sunday) Founded in 1994, IBT gives British shareholders a way to invest in the firms developing new treatments for conditions such as cancer, Parkinson’s and rheumatoid arthritis. Most of the portfolio is based in America and 90% is invested in listed firms, which reduces risk. The sector is benefiting from the structural tailwind of an ageing population. With a “long and impressive track record” and a dividend payment to boot, this seems a good way to gain exposure. 786p
Next
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
(Investors Chronicle) Next is preparing for the future. The group has been cutting store numbers and shifting from the high street to cheaper out-of-town locations, as well as renegotiating rents with “embattled landlords”. The store estate complements the online operation – “about half” of online purchases are collected in store. Online sales overtook retail for the first time last year. On an “undemanding” 13 times earnings it is a buy. 6,254p
BT Group
(Motley Fool UK) At first blush, the 48% crash in BT’s share price this year was surprising. A telecoms company might be expected to be one of the winners from prolonged social distancing. The trouble is not BT’s business model but its balance sheet. A record of overly ambitious expansion yielded falling earnings and rising net debt, currently around £18bn. Yet new management is running a “tighter ship” and analysts are “cautiously optimistic”. With the shares on a mere six times forward earnings, those who buy a small stake may be pleasantly surprised. 102p
Three to sell
JD Wetherspoon
(Interactive Investor) This pub chain is heading for a “reality check”. With the shares on more than 30 times expected earnings for the year to 28 July 2021, there is “no leeway” for things to go wrong. Investors may be betting that Wetherspoons can increase its daytime food-marketing efforts in response to the latest Covid-19 restrictions. Yet some consumers will become more cautious about eating and drinking out in case they catch the virus and need to self-isolate. With few positive catalysts on the horizon the risks are weighted to the downside. 775p
Learning Technologies
(The Times) Software specialist Learning Technologies, whose offerings include compliance tests and training programmes for companies, has reported “a recent bounce in demand, which has restored confidence in the boardroom” and it is set to pay an interim dividend. The group looks well placed for the post-pandemic world, “which will require workers to acquire new skills”, and its foray into online education looks shrewd. But on 30 times forward earnings the auspicious outlook is already in the price. Avoid. 129p
Lloyds Banking Group
(Shares) Things have “gone horribly wrong” since we tipped Lloyds bank last December. We hoped that Boris Johnson’s re-election would make for a calmer 2020, but that was not to be. A tanking domestic economy, tumbling interest rates and never-ending Brexit uncertainty are a terrible cocktail for Britain’s banks. The shares are down 60% since then and talk that rates could go negative next year only suggests that further pain is in store, so sell. 24p
...and the rest
The Daily Telegraph
Supermarket tills will be ringing with the pounds diverted from pubs and restaurants, so hold onto Supermarket Income Reit (109p).
Investors Chronicle
Aviva has disappointed of late, but the insurer boasts surplus capital and a strong brand. Buy (292p).
The Mail on Sunday
Aim-listed rare diseases specialist Amryt Pharma is making money and this summer’s listing on the Nasdaq has raised its profile in the US. Existing shareholders should maintain most of their stake, and new investors “may fancy a punt” (195p).
Shares
World-leading concrete-levelling specialist Somero Enterprises is a top-quality company, yet the shares trade on just 10.9 times earnings. Buy (260p). Music royalty investor Hipgnosis Songs Fund is expanding its catalogue and the upcoming revaluation of its assets could provide a further boost (119p). Premier Inn-owner Whitbread has axed 6,000 jobs. The business traveller market looks particularly unlikely to revive for the foreseeable future, so sell (2,070p).
The Times
Scottish broadcaster STV has been reaching more audiences during lockdown and advertising spending is improving after plunging earlier this year. It might prove a takeover target, so buy (250p). National Grid is a dependable business that pays an attractive 5.7% dividend yield (850p). Trading at paving and landscaping supplier Marshalls fell by 50% in the spring. But it has recovered sharply and the group should benefit from the shift towards DIY. Buy (645p).
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
-
How to find quality and profitability in financial companiesOpinion Julian Cane, manager of the CT UK Capital & Income Trust, picks three financial companies that drive cash flow, dividends and asset value
-
Luxury stocks rally after Richemont sales boom – is there hope for the sector?Cartier owner Richemont’s robust results have boosted sentiment about luxury stocks – but are investors getting carried away?
-
Transformed companies displaying momentum and top-quality growthAlex Savvides, manager of Jupiter UK Dynamic Equity Fund, highlights three companies as he tells us where he'd put his money
-
Should you add Straumann Holding to your portfolio?Straumann Holding is a global leader in the premium dental-care market
-
What’s the outlook for the shipping industry in 2025?All we know for certain about the year ahead is that it will be volatile. But the container shipping sector thrives on choppy waters
-
How to find top-quality companies with sustainable and growing dividendsIan Mortimer, portfolio manager of Guinness Global Equity Income Fund, shares where he would put his money for sustainable and growing dividends
-
Why Wise could be worth a lot more than its share price impliesForeign-exchange transfer service Wise has the potential to become the Amazon of its sector – here's why you should consider buying this stock now
-
Can The Gym Group pump up your portfolio?Gym Group was one of the best UK small-cap stocks in 2024 and will beef up your profits this New Year
