UK Stocks and Share tips
Top
of the Tips: Share Recommendations 12/1/2007
Buy
Southern
Cross Healthcare
Southern
Cross is the largest operator of nursing homes in the UK,
with 29,000 beds at the last count, equating to a 6 per
cent share of the UK market.
Southern
Cross' business model has been proven to be successful and
they hope to add a further 1000 beds this year, having recently
secured £300m in capital to fund further acquisitions.
Demand
for elderly care services is growing in the UK, and with
70 per cent of Southern Cross' revenues coming from local
authorities, their future should be assured.
Buy,
says The Telegraph.
Ricardo
Engineering
consultancy Ricardo specialise in the automotive industry.
Although for many years they were dependent on income from
the large American manufacturers, in recent years they have
diversified and now have clients in the US, Germany, Japan,
China and India.
The
breadth of their client base should help them become more
flexible, and their shares are currently at a discount to
their competitors, trading at around 14 times 2007 forecast
earnings.
Buy,
says The Times.
Sell
Cable
& Wireless
International
telecoms operator Cable & Wireless enjoyed a prosperous
second half of 2006, and shares are now up nearly 30 per
cent since the end the summer.
However,
their solid results don't seem to fully justify the premium
price of C&W's shares at the moment – currently
trading at 36 time earnings, a significant premium to comparable
European companies.
The
weakness of the dollar could also hurt C&W, as 80% of
the revenues from their international division are in dollars.
Time
to take profits - sell says The Independent.
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