Share tips of the week – 21 January
MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
Six shares to buy
BHP
The Daily Telegraph
Miner BHP plans to focus on growing demand for the raw materials that will be used in the electrification of the economy. It’s selling its oil assets and will concentrate on producing iron ore, needed to make steel for renewable energy assets, and copper and nickel, which are essential for electric vehicles. The company is in a strong financial position (net debt fell from £8.8bn to £3bn during the 2021 financial year), yet offers an attractive yield of 9.3%. “Now is the right time to buy… on a long-term view.” 2,379p.
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
DWF
The Sunday Times
DWF is the only law firm listed on London’s main market. Last week “it finally returned to the price it listed at in 2019”. The stock had underperformed for months, but “there are now reasons to be hopeful” after a reorganisation. The company reported a 3.4% rise in net revenue for the six months to the end of October compared with the same time last year, and pre-tax profits are predicted to reach £38m this year. 125p.
Games Workshop
Investors’ Chronicle
Games Workshop owns Warhammer, an “extremely popular” miniature figures war game. Strong growth and “regular returns of surplus cash to shareholders” saw the group trading at “lofty multiples”, but profits suffered when supply-chain issues arose and the shares lost around 25% of their value last year. However, half-year results for the six months to 28 November 2021 suggest performance should recover when these issues ease. Royalties from its intellectual property more than doubled to £20.1m, and a number of major video games are set for release this year. The pandemic increased demand for gaming, and if these launches are successful royalties will increase again. “This dip is a good time to buy.” 9,728p.
ITV
Motley Fool
Analysts expect Britain’s biggest commercial broadcaster to record zero earnings growth in 2022, but the stock is still trading on a forward price-to-earnings ratio of 7.9 times, and it also has a “mighty” 5.2% dividend yield. Profit forecasts could be gradually upgraded as the year progresses, “leading to hefty share-price gains”. The advertising market has recovered strongly from the pandemic, while the company is investing in its production arm, ITV Studios, to turn it into a “global heavyweight”. 119.95p.
Kooth
The Mail on Sunday
Around 12 million people in the UK suffer from mental-health problems at any given time. Kooth, which provides online treatment through an entirely anonymous service with experienced counsellors, is working with the NHS (its number-one client) and other organisations to help. It was originally set up for young people, but has added adult mental-health services in recent years. Mental-health issues cost businesses over £40bn a year, “so there is a big incentive for companies to help workers feel better”. Brokers expect revenues of £16.7m for 2021, a 28% increase from the year before, and more gains this year. 319p.
Temple Bar Investment Trust
Shares
Investors have turned away from technology growth firms towards value stocks. This bodes well for Temple Bar, which specialises in this style of investing: unfashionable oil and gas companies Royal Dutch Shell and BP are among its biggest holdings. The trust is on track to pay at least 29p per share in dividends for the 2021 financial year – putting it on a yield of 3.3% – and this should grow in 2022. On a discount to net asset value of 7.9%, it’s a buy. 1,187p.
...and the rest
The Daily Telegraph
Supermarket chain Tesco is “a quiet horse that could make steady running” and turn into a “quality compounder”. The likelihood of an increase in the dividend and a share-buyback programme hasn’t been priced in. That presents a good opportunity to buy (292.4p).
Investors’ Chronicle
JD Sports Fashion expects profits for the year to come in ahead of expectations, thanks to an “upbeat end” to 2021. Sales for the 22 weeks to 1 January 2022 were 10% higher than the previous year. The firm credited fiscal stimulus measures and increased levels of consumer demand for boosting its performance relative to the first half of the year. Buy (195.95p).
The Mail on Sunday
Stelrad is the UK’s number one radiator group, selling six million radiators every year. Chief executive Trevor Harvey is determine to deliver growth, increase the company’s market share (now over 60%), produce related products and acquire smaller competitors. Further gains are likely, so buy (208p).
Shares
Odyssean Investment Trust has proposed a merger with rival Strategic Equity Capital. Talks are at an early stage, but the combination “would create a leading trust differentiated from the wider UK small-cap sector” and economies of scale to reduce charges for shareholders. Buy (168p). Cordiant Digital Infrastructure, which specialises in data centres, mobile communications, broadcast towers and fibre-optic networks, should pay a dividend of 4p per share in the coming year – ahead of what it forecast when it went public last February. “The experienced management team is delivering on promises.” Buy (108p).
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.
-
What is a trust – and should you use it to avoid inheritance tax?
Trusts are surging in popularity as a way to avoid inheritance tax, according to financial advisers on the frontline of estate planning. We look at what trusts are and if they are right for you.
-
What will be the consequences of Donald Trump’s "One Big Beautiful Bill"?
The US president’s "One Big Beautiful Bill", an extraordinary mix of tax cuts and spending plans, has made it through both houses of the US Congress. What will be the consequences?
-
AJ Bell: a fine British fintech going cheap
Opinion Don’t overlook investment platform AJ Bell, a significantly undervalued British business with an excellent financial base
-
Energy infrastructure companies will provide a lift for your portfolio
Opinion Stacey Morris, Head of Energy Research at VettaFi, highlights three energy infrastructure stocks that she'd put her money in
-
QXO: a compelling opportunity in the building materials industry
Opinion The boss of QXO knows how to make a few billion dollars, and aims to repeat the trick. Investors would be wise to back him, says Jamie Ward
-
Microsoft’s partnership with OpenAI is on the rocks
Microsoft’s joint venture with OpenAI, the developer of ChatGPT, appears to be in trouble. What now for the two groups?
-
Carson Block on short-selling and what investors should watch out for when going long
Interview Renowned short seller Carson Block talks to Matthew Partridge about his specialism and where to go long
-
Investors can buy into tomorrow’s top global technology stocks today
Opinion Anthony Ginsberg, manager of HAN-GINS Tech Megatrend Equal Weight UCITS ETF, highlights three technology stocks as he tells us where he'd put his money
-
Drinks maker Diageo gets back on its feet – should you invest?
Diageo has faced one disaster after another over the past two years. Is it finally time to buy?
-
'Seeking out quality and resilience will pay off for patient British investors'
Opinion Gary Channon, chief investment officer of Phoenix Asset Management Partners, and Kartik Kumar, member of the Investment Team, select three stocks