Old UK Share tips
Top of the Tips:
Share Recommendations to 20th October 2006
The following is a summary of share tips that we have
complied. Please note that we have no commercial interest
in any of these shares. The list is picked at random from
leading UK publications. Always take professional advice
before investing your hard earned cash.
This weeks compilation is as follows:
Buy
Bellway
Newcastle-based
homebuilder Bellway has just reported record revenues of
£1.24bn, along with a 25% growth in its medium-term
land bank. It is looking to generate continued growth through
an increase in volume, and is in a strong position with
its larger-than-average land bank. Currently at a slight
discount to its peers, The Times has Bellway as a buy.
Mothercare
Although
it has had a slightly turbulent year, Mothercare has been
built on solid foundations and has a proven management team.
A 3% dividend yield does no harm either, and The Times has
Mothercare as a buy.
Sell
Clinton
Cards
Although
Clinton Cards is showing some signs of resurgence, its price
already seems to reflect this recovery, and it now seems
a little expensive compared to its peers. Clinton's budget
brand Birthdays is facing increased competition from supermarkets,
and it now looks like a good time to offload. The Telegraph
has Clinton Cards as a sell.
MFI
Following MFI's recent divestiture of its retail business,
its only remaining business is the Howden Joinery chain
of builder's merchants. While brokers Cazenove are forecasting
increased profits of £49m on earnings of £728m
for 2007, this still leaves shares trading at 17 times earnings
- looking a bit pricey next to peers such as Travis Perkins,
trading at 12 times earnings. The Independent has MFI as
a sell.
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