UK Stocks and Share tips
Top
of the Tips: Share Recommendations 2/2/2007
Buy
SMC
SMC
are one of Scotland's leading architects and a substantial
player in the UK market as a whole. Their shares recently
took a surprise 30 per cent dive following an announcement
of revised accounting methods, but this is not a fair reflection
of the underlying value in the company, which is still sound.
At less than 10 times forecast earnings for 2007, it is
a keen buy at present.
Buy,
says The Independent.
Liontrust
This
fund manager is still losing more than it is gaining, but
performance improvements suggests that this situation will
correct itself in 2007. Liontrust are currently trading
at just under 15 times forecast earnings for 2007 –
a discount for this sector. Analysts expect the price to
earnings ratio to increase this year on the back of performance
improvements, making now a good time to buy.
Buy,
says The Independent.
Sell
Tate
& Lyle
Although
the sugar company has produced some remarkable results in
recent years, a sudden 15 per cent drop in its share price
recently suggests that some investors are not sure of the
solidity of its present valuation.
Much
of Tate & Lyle's recent success has been as a result
of its Splenda product, a sweetener that although only accounting
for 4 per cent of sales, has been responsible for 21 per
cent of profits.
Although
there shares are trading at a fair 15 times forecast earnings,
with a 3 per cent yield, its possible that Tate's fortunes
will get worse before they get better. Much depends on the
success of the company's attempts to diversify and find
new markets for Splenda.
Sell,
says The Times.
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