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.
Six to buy
Marlowe
(Shares) This business-services firm keeps companies ahead of red tape, working with clients across areas such as fire safety, air hygiene and compliance software. The potential market for these services is thought to be worth £6.8bn in the UK alone, with especially promising growth in areas such as employment law, HR and occupational health. Management has an ambitious three-year plan to double revenue to £500m and almost treble earnings before interest, taxes, depreciation and amortisation (EBITDA). Now looks a propitious time for investors to buy in. 790p
Tritax EuroBox
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
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
(Interactive Investor) This real-estate investment trust invests in logistics warehouses in continental Europe, with sites in Germany, Italy, Spain and the low countries. The e-commerce boom means that many warehouse firms now trade at a premium. However, EuroBox trades on a small discount to net tangible asset value, perhaps simply because it is less well-known by investors. On a prospective yield of 4.2% this is one to “tuck away”. 105p
Electrocomponents
(Investors’ Chronicle) This industrial and electronic products supplier sells everything from “calibration instruments to personal protective equipment”. Its 1.2 million customers operate in diverse sectors ranging from healthcare to mining. A vast product range and digital sales channels leave it well-placed to consolidate a fragmented global market that is valued at approximately £400bn. Long a distributor, the group is expanding margins by moving into more profitable areas such as after-sales services. On a price/earnings (p/e) ratio of 20 the shares aren’t cheap, but this is an “acceptable” rating given the auspicious long-term growth outlook. 1,015p
The Hut Group
(Motley Fool UK) Shares in this e-commerce specialist soared upon flotation last September, but have since retreated. The Hut Group sells beauty and nutrition products online. These are fast-growing markets and The Hut Group complements organic growth with “shrewd” acquisitions. In 2020 revenues grew 40% on the year. The company is still loss-making, which makes it difficult to value, but “strong customer loyalty” and impressive growth prospects suggest there may be “significant upside” for the brave. 611p
tinyBuild
(The Mail on Sunday) The global video-game industry generates annual sales of £125bn, eclipsing the film business. This developer has made 40 games and is a comparative minnow, but it has several “strategic advantages” that have helped it carve out a niche. Its game developers often live in eastern Europe, which keeps costs low. TinyBuild’s “intensely ambitious” boss, Alex Nichiporchik, is a master at using social media to drum up sales. A close connection with fans also enables the business to spot trends such as mobile gaming early. The shares could “go far”. 255p
Workspace Group
(The Times) Last year was a predictably “torrid” one for this office landlord, which reported its first loss since the financial crisis. Management has halved the dividend; the share now yields 2%. The group operates in the flexible office-space market, with 3,000 mainly small clients in London. This flexible office model, which avoids the commitment of long leases, may be just what companies need as they gauge how much space they will need post-pandemic. Workspace’s niche could prove profitable if the future of offices turns out to be “flexible”. 883p
...and the rest
Barron’s
The US is rebounding so it’s party time in Las Vegas. That’s good news for hotel and entertainment operator MGM Resorts International. Excitement about reopening means the shares are not cheap, but add in the growing digital arm and they could have further to go ($42.23).
Shares
Road safety-barrier supplier to zinc galvaniser Hill & Smith is reaping the rewards of restructuring, with sales up by 10% during the first third of 2021 compared with a year before. Infrastructure investment in the US could yet drive a share price rerating. Keep buying (1,534p). Spirit drinkers in central and eastern Europe increasingly prefer premium brands, so buy Stock Spirits, which operates mainly in Poland, the Czech Republic and Italy. On a 3.3% dividend yield and a prospective price/earnings ratio of 14.1, it trades on a discount to the European beverage-sector average (272p).
The Daily Telegraph
New Covid-19 strains mean that vaccines are no panacea; we also need better treatments for people who do get sick. Synairgen’s inhalation therapy could be part of the solution. This is a highly volatile and speculative play, but it’s worth a “small punt” (176p).
The Times
Pennon Group is now a pure-water play “cash cow”, having sold its waste-management division, Viridor, last year. The trouble is that it is not a particularly promising play for income seekers. A dividend yield of around 2% and a share price that has flatlined since the Viridor sale suggests “there are better... prospects elsewhere”. Sell (1,088p).
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
The best properties for sale for around £500,000
Properties for sale for around £500k – from a Grade II-listed former rectory in County Durham to an early 19th-century chateau in southwest France.
By Natasha Langan Published
-
M&S recovery has momentum: will it stick?
After years of decline, M&S seems to have turned a corner. But is this just a “dead cat bounce”?
By Dr Matthew Partridge Published
-
Small caps: how to ride the recovery wave of UK equities
Professional investor Ken Wotton highlights British small caps that hit the sweet spot of the British equity market
By Ken Wotton Published
-
0DTE options: should you bet on America's favourite?
Zero-days-to-expiration (0DTE) options are popular with US traders seeking high leverage, but consistent profits by betting on short-term market direction are slim
By Theo Casey Published
-
Investing in defence: the easiest way to buy into the boom
The defence sector has taken off, but the opportunities for stock picking are more limited. We explain what to buy
By Frederic Guirinec Published
-
The investment opportunities in a bear market
As equities fell sharply in August, Max King explores the investment opportunities in a bear market
By Max King Published
-
How to invest in Web 3.0
Here are three core holdings at the forefront of Web 3.0 development that could shape the next era of the internet, according to Chanchal Samadder, head of product at ETC Group
By Chanchal Samadder Published
-
How investors can cash in on undersea cables
Undersea cables are in demand as the renewable energy boom has sparked a race to rewire the world
By Rupert Hargreaves Published
-
Relx outperforms: should you buy this FTSE 100 success story?
Relx, a fast-growing risk management and analytics group is benefiting from artificial intelligence
By Dr Mike Tubbs Published
-
UK stocks have become a global favourite – should you invest?
The world is taking to UK stocks – but how long will it last?
By Alex Rankine Published