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
Kingfisher
(Mail on Sunday) B&Q and Screwfix-owner Kingfisher had an “extraordinary” 2020. The DIY group has benefited from “our desire to make the same four walls look nicer”. But the firm owes its success to more than the lockdown boom: CEO Thierry Garnier’s five-year plan has focused on improving performance in France, a key market, cutting some costs and investing in its digital presence. Turnover for the year to 31 January 2021 was up by 7.2% to £12.3bn and pre-tax profits grew from £103m in 2019 to £756m in 2020. The firm’s cash pile is “reassuring on the dividend front”, and its long- term strategy “seems to be paying off”. 325p
Ford
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) Ford’s investments in electric and autonomous vehicles are yielding positive results. As activity recovers after the pandemic the car maker “should see increased sales for its cars and pickup trucks”. The group is suffering from the impact of the global semiconductor shortage, which could see earnings drop by $1bn to $2.5bn. But with a “clearer electric-vehicle strategy” the firm looks well prepared for the future. $12.85
Kenmare
(Investors’ Chronicle) Mozambique-based miner Kenmare Resources had a difficult year, but the firm has nonetheless managed to maintain its dividend. Production for the year was down by 15%, but higher ilmenite (a mineral-rich sand) prices “helped the bottom line”. Debt has risen sharply but the firm’s relocation of its WCP B plant was also the final step in a “multi-year growth programme” that should yield positive results. 407p
Three to sell
Genel Energy
(Investors’ Chronicle) Kurdistan-based oil company Genel Energy saw its sales more than halve in 2020. Cashflow slumped to $4m from $99m in 2019. Production is set to stay flat at around 32,000 barrels of oil per day. The firm has previously struggled to get paid by the Kurdistan Regional Government and is still owed around $159m of oil sales, “equal to its entire 2020 revenue”. Profits were further harmed by a $320m impairment. All this adds up to a sell. 187p
Manchester & London
(The Daily Telegraph) The Telegraph tipped Manchester & London in 2017 when it switched from “largely British shares to a growth-focused fund” containing big tech stocks such as Amazon, Facebook and Alphabet. It has performed strongly over the last three years. But now a “basket of stocks” that should have returned 32% over 2020 only yielded an 8.4% gain. This is because the trust sold call options on the shares it holds, limiting overall returns. This approach has complicated “what should be a straightforward investment rationale”. The argument for the trust “no longer holds”. 586p
In The Style
(The Sunday Times) Online fashion retailer In The Style listed on Aim this month. It made a £2m profit on sales of £35.4m in the nine months to January 2021. FounderAdam Frisby ascribes last year’s growth to the firm’s “switch from selling dresses to lockdown-friendly jogging bottoms”. But it remains to be seen whether recent growth will “outlive the pandemic... Investors should wait for evidence [that it] isn’t just a passing fad.” Avoid. 235p
...and the rest
Investors’ Chronicle
“Pent up demand” by homeowners spending their savings on improvements helped offset the lockdown-induced downturn at LED-lighting manufacturer Luceco. It looks “well positioned” for the recovery. Buy (266p). Speciality chemicals and personal care business Elementis “posted a predictably downbeat set of results after a pandemic-ravaged year”. Sales in its core divisions, personal care and coatings, fell by 9% and 7% respectively. The group also needs to reduce debt. “We remain cautious for now.” Sell (121p).
Shares
Data services group Relx has seen its shares fall behind “since the market shifted its focus to cheap value stocks”. But the share-price weakness represents an opportunity. Relx’s focus on organic growth, coupled with an “excellent track record”, make it a good investment for the long term. Buy (1,757p).
The Daily Telegraph
Record-low interest rates hit banks even before the virus. Lockdowns threatening customers’ solvency “make matters worse”. Sell Italy’s Intesa Sanpaolo (€2.30).
The Motley Fool
Hydrogen fuel cells “are increasingly being made obsolete by lithium-ion batteries”, which doesn’t bode well for green-energy hydrogen companies such as Plug Power. The company has also said it will have to restate accounts for previous years. Avoid ($35). Revenue at Nokia declined by 6% last year and is set to fall again this year. Consumers are ditching Nokia’s traditional 4G network for 5G, “to which the company has yet to fully upgrade”. Avoid (€3.50).
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.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Council tax bills in worst hit areas set to rise by £500 in the next four years
Branded the ‘ultimate stealth tax’, the council tax burden is increasing across the country, with some areas potentially having to find hundreds of pounds more a year to pay the bill
-
Crypto ETNs are approved for UK retail investors
The FCA has approved the sale of crypto ETNs to retail investors from October. What is a crypto ETN, and what does this mean for investors?
-
Global equities that should prove resilient to the stock market’s storms
Opinion Alex Illingworth of Goshawk Asset Management highlights three diverse opportunities in global equities despite a turbulent landscape
-
FRP Advisory Group – a bargain in a booming market
FRP Advisory Group's past and future growth isn’t reflected in the company’s valuation
-
European funds: investors have 'a luxury of choice'
A series of mergers is bringing consolidation among European funds, but investors should benefit, says Max King
-
Sizzling sales at Sysco – should you invest in this US food supplier?
The American food distribution group Sysco is expanding rapidly worldwide and is still reasonably valued
-
Where investors can find value now
Opinion Active fund managers and blue chips on both sides of the Atlantic look appealing, says ByteTree’s Charlie Morris
-
How to balance growth and income when investing
Dividend-paying stocks have beaten the market. That doesn’t mean that income funds will do best
-
UK equities: where to find a great British bargain
UK equities are staging a comeback, but there’s still plenty of value out there, says Rupert Hargreaves
-
Top global stocks offering rising income and lasting long-term growth
Opinion Samantha Fitzpatrick, co-manager of the Murray International Trust, selects three global stocks where she’d put her money