Share tips of the week – 20 August
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
Ocean Outdoor
(The Mail on Sunday) Outdoor advertising “had limited appeal” in 2020: turnover at ad agency Ocean Outdoor fell by 28% to £86m. But the firm “used the year wisely, bedding down 2019 acquisitions, renegotiating contracts with landlords and investing in the future”. Demand is recovering quickly and profits of £14.5m are expected next year, with “substantial gains” pencilled in for the years to come. The firm specialises in digital advertising, one of the fastest-growing subsectors $8.38
Serco
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) The Covid-19 Test & Trace contract made up 17% of public-sector outsourcing group Serco’s revenues and led to a 31% increase in operating profit in the first half of 2021. Sales are expected to be lower in the second half of the year as Covid-19 “dissipates”, but the company believes “the goodwill it has built up will stand it in good stead”. The firm has a strong balance sheet, which offers protection. The company acquired US defence business Whitney, Bradley & Brown in February, which bodes well as the US defence budget is unlikely to be cut. 140p
London Stock Exchange Group
(Shares Magazine) The stock has swooned since March; investors are fretting over the cost of integrating data provider Refinitiv, acquired for $27bn. But interim results bode well. Pre-tax profits almost doubled to £510m. The deal with Refinitiv “enhances exposure” to subscription- based revenues and secures the firm’s position in Asia and America. The group boasts “unique... market infrastructure and data assets”. 7,812p
Three to sell
Palantir
(InvestorPlace) US software group Palantir “is a wonderful company”, but it is trading at an inflated price. The company does well when it comes to securing contracts with agencies of the US federal government, but growing its client base in the private sector “has been a work in progress”. The stock is on a forward price/earnings (p/e) ratio of 175. Even if it fell by 50%, its valuation would “more than [reflect] its growth prospects”. Avoid for now. $24.90
Capita
(Investors’ Chronicle) “Ever-shrinking outsourcer Capita enjoyed a reasonable half compare with its usual dreadful standards.” The company expects to “finally see sustainable free cash flow in 2022”. But for now, it is “bleeding cash” thanks partly to pension payments and restructuring costs. The firm disposed of £536m worth of assets in the first half, but the fire sale was due to the fast-approaching “wall of maturing short-term debt”. Like most other outsourcers, the firm’s assumptions on government spending “have been proved consistently wrong”, which has led to “troublesome and underperforming contracts”. Sell. 37p
Randall & Quilter
(The Daily Telegraph) It is not clear whether Aim-listed insurer Randall & Quilter qualifies for inheritance-tax (IHT) relief. The crux of the matter is the nature of the firm’s assets (“passively” held investments are not eligible for IHT relief, whereas “trading” assets needed to keep the company running are). R&Q insists its shares qualify, but HMRC may disagree. If you opted for R&Q for the IHT relief, sell and reinvest in another Aim stock. 170p
...and the rest
The Daily Telegraph
Shares in Fastned, the Dutch operator of fast-charging electric car stations, have fallen by 40% since February. That is probably due to the “unwinding” of some “speculative money” that went into renewables; there is no sign of trouble at the company. Hold (€60). MaxCyte, the “futuristic” gene-therapy company, has long-term potential. Last month’s listing on the Nasdaq raised $202m for research and development. Hold (1,105p).
Mail on Sunday
Flooring group James Halstead marked almost half a century of unbroken growth last year, which reflects the group’s culture of “financial conservatism and product innovation”. It boasts schools, stations, offices, shops, homes and hospitals as customers, and “virtually every NHS trust uses its flooring”. The stock should keep repaying shareholders “handsomely”. Hold (550p).
Investors’ Chronicle
Zetefoams is a specialist in cellular-materials technology, or foam. The company is struggling with “significant supply-chain inflationary pressures”. But they were either brought on by the pandemic or exacerbated by it, so they should eventually dissipate. Hold (449p).
Shares Magazine
Elective procedures are returning as Covid-19 ebbs. Demand for medical-equipment firm Boston Scientific’s products is picking up again. The group reported second-quarter profit and sales that surpassed expectations, and it has raised its full-year outlook. The stock has risen by 24% in 2021 and there should be further gains ahead. Buy ($43.81).
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.
-
Michelin Key Hotels 2025: the top destinations in the world
The Michelin Keys have been awarded to spectacular hotels across the world. From Marlon Brando's private resort in Polynesia to a Bvlgari hotel in Tokyo, we look at some of the most extraordinary stays in 2025
-
MoneyWeek news quiz: How much could you get in car finance compensation?
The car finance scandal, inheritance tax, and house prices all made headlines over the past few days. Test your knowledge while reviewing this week’s top stories with MoneyWeek’s news quiz
-
The private equity puzzle
Listed private equity trusts still trade at large discounts, despite sales that validate their valuations
-
Why investors should avoid market monomania
Opinion Today’s overwhelming focus on US markets leaves investors guessing about opportunities and risks elsewhere
-
Can Rachel Reeves save the City?
Opinion Chancellor Rachel Reeves is mulling a tax cut, which would be welcome – but it’s nowhere near enough, says Matthew Lynn
-
Pierre-Édouard Stérin wants to make France great again
Conservative billionaire Pierre-Édouard Stérin is seeking to lead a political and spiritual renaissance across the Channel. The planning looks meticulous
-
Global investors have overlooked the top innovators in emerging markets
Opinion Carlos Hardenberg, portfolio manager, Mobius Investment Trust, highlights three emerging market stocks where he’d put his money
-
Pinewood Technologies: a drive for growth
Pinewood Technologies’ platform is one of the best in the business. Investors should buy in
-
'EV maker Faraday Future will crash'
Faraday Future Intelligent Electric is failing dismally to live up to its name, says Matthew Partridge
-
Investors should cheer the coming nuclear summer
The US and UK have agreed a groundbreaking deal on nuclear power, and the sector is seeing a surge in interest from around the world. Here's how you can profit