Archived UK Stocks Shares Investment Tips complied by Money sorter at 27 4 2007

UK Stocks and Shares and Investment tips

Top of the Tips: Share Recommendations to week ending 27 4 2007

Ones To Buy

Worthington Nichols

This family-run air-conditioning firm was founded in the 1970s and today enjoys a strong foothold in the hotel and retail sectors. It is focused on expanding through acquisition and this strategy looks to have strong long-term prospects, especially considering new legislation that requires regular maintenance of air-conditioning units.

Worthington's Shares have already risen along way since it floated, but still have further to go, says Midas in the Mail on Sunday.

WH Smith

The eponymous stationer and newsagent has managed to increase underlying pre-tax profits from £55 million to £59 million in the last year, partly as a result of a more tightly-focused stock policy. An increased focus on travel outlets – at motorway services, railway stations and airports – appears to be yielding positive results too.

WH Smith is fairly valued at the moment and makes an attractive purchase, according to The Times.

CSR

The bluetooth technology specialist has recently settled a patent dispute out of court, despite describing the suit as "without merit". It's possible that customers were becoming unsettled by the dispute – after a bumpy 2006, CSR are doing their best to reassure investors that 2007 will be a good year.

CSR is currently trading at a discount to the sector, and with several new products coming on-stream, looks an attractive buy, according to The Independent.

Vanco

Fixed-line telecoms operator Vanco's policy of creating virtual networks utilising other operators' infrastructures, rather than building its own, appears to be working well. The company has just announced full-year results showing sales up 25 per cent and pre-tax profits up by a third.

Further price growth looks likely, and the lack of dividend should not be an obstacle. Buy, says The Times. Not everyone agrees with this outlook, however – see below.

Bodycote

Heat-treating firm Bodycote are currently in the middle of a takeover tussle with Swiss group Sulzer. Sulzer look likely to come back with a higher offer which will boost Bodycote's share price, but even if the takeover does not go through, Bodycote remain a sound investment. Buy, says The Telegraph.

Rugby Estates

This young property management firm have big ambitions, hoping to increase the £550 million of assets they currently manage to £2 billion over the next two years. Their plan for this involves launching their own "REIT" – real estate investment trust – and they could well succeed.

Last year saw a 79 per cent increase in pre-tax profits, and although their share price is high it represents "justifiable expectations", according to The Times – buy.

Ones To Let Go

Thorntons

Thorntons are presently enjoying a seasonal boost, following a warm Easter and strong ice cream sales. Both online sales and supermarket sales are also on the up, and consequently its shares have risen rapidly – perhaps too rapidly.

At 29 times forward earnings, they are just too high – time to take profits, says The Independent.

Vanco

The Telegraph thinks that Vanco's accounting is a little over-flattering, and reveals serious vulnerabilities in the event of falling revenues or new customer acquisitions. Add to this evidence that a large number of traders are shorting Vanco shares, and several question marks appear. Sell, says Questor in The Telegraph.