Newspaper and magazine share tips

By This Is Money
Updated: 08:56 EDT, 21 April 2011

Round up: The latest share tips from national newspapers and investment magazines

Each day we round up share tips from national newspapers and investing magazines. For the Mail on Sunday's stock picks, read the Midas column.

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THURSDAY

Shares Magazine

A bullish outlook for gold prices is reason to buy South-America based Minera IRL which is enjoying fantastic exploration success and has plenty of news flow this year to drive up its share price. A high price of gold is good news for Minera as it is one of the lowest-cost producers among its UK-quoted peer group. Minera has so far prpved up 1.6m ounces of gold at Ollechea, Peru. Buy.

A mind-boggling 450m smartphone handsets will be shipped this year, according to market researcher IDC, as the gadget world desperately tries to keep pace with consumer's insatiable need to surf the web on-the-go. Software specialist Bango's once-click payments software (app) is simple and effective for phone users to buy games, music and other content from an app store. Rapid growth potential should see shares break the 200p barrier this year. Buy.

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The Daily Telegraph

Recycled packaging group DS Smith said yesterday that it would have 'significant' growth in earnings this year – bringing buyers of the shares out in force. Questor is a fan of the packaging sector for a number of reasons. Globally, sales of fast-moving consumer goods are rising as the middle class expands in Asia, Africa and South America. The shares are trading on a April 2011 earnings multiple of 12.3 times, falling to 10 in 2012. Buy.

BHP Billiton, the largest mining company in the world, has taken its eye off M&A after a series of major deals derailed. With commodity prices so high, the company is a cash-generating machine and its shares are once again close to all-time highs. The company is buying back Australian-listed shares, but investors should not expect any large increases in dividend payments. The shares are still a buy for BHP's cash-generating ability and the continuing expansion of its production. Buy.

The Independent

Mike Ashley's Sports Direct International group has never been far from controversy – but this time, there is nothing to worry about. From an investment perspective, we remain fans of the company, and we're hopeful of another good trading update today. With the prospect of its dividend returning in its 2011-12 financial year, we're happening to keep backing this horse. Buy.

Fidessa's trading update yesterday was steady as she goes. In a statement short of numbers, the trading platform supplier and consultancy said it was winning 'significant new orders' despite the regulatory and economic uncertainty hanging over its financial-institution customers. Buy.

WEDNESDAY

Daily Telegraph

Domino's Pizza failed to deliver in its first-quarter update at the end of March and the shares have been on the slide since then. However, the pizza chain is still a growth company and it looks like the shares have fallen too far. There was no doubt that the first quarter was disappointing as sales growth slipped – but it was far from being a disaster. There was still growth. The shares were first recommended on July 21 2009, when they were trading at 235.25p and they are up 67% since then. The shares are a buy at their current level, despite the tough comparatives.

The benefits of Tesco's international strategy were clear in yesterday's numbers. Asian sales rose almost 10% - but there was definitely a hint of caution about prospects in the East. In fact, there was disappointment about the results as a whole – as the figures missed analysts' forecasts – but the company still remains Questor's preferred supermarket play. The shares were recommended as a buy on December 14 2008 at 329.75p and they are up 19%. Buy.

The Times

Five years ago United Business Media was, in the words of one commentator, a 'rag-bag' of businesses, about two thirds of its income coming from various worthy publications. Now less than 5% of profits come from the printed word – this, in part, a reflection of the falling profitability of magazines, which still account for 13% of revenues at the latest count. It also reflects 80-odd acquisitions. This column highlighted the attractions of UBM shares in September as a good play on economic recovery. Weak since the start of the year, they continue as such. Buy.

Those Falkland Island oil explores are an unending source of entertainment and hilarity to those of us not foolish enough to have bet our shirts on them. This week's Feydeauesque performance comes from Falkland Oil and Gas, which has been raising £32m to go heat with exploratory drilling at its Loligo venture. As one broker has it, the venture 'is at the edge of high risk/risk reward opportunities.' This translates as a spectacularly risky buy – but they all are.

The Independent

The two publishers who updated the market yesterday generated varying degrees of excitement with their results. But is either Reed Elsevier or United Business Media (UBM) worth a punt in the longer term. In both cases, we did not hear anything that would make us press the 'buy' button. That said, there nothing so negative as to merit a 'sell' stance. We'd keep holding both Reed, which closed at 537.5p, up 2p, and UBM, which was 18p higher at 590.5p.

TUESDAY

The Daily Telegraph

Last week, Primary Health Properties (PHP) said it was raising £16.1m in a placing, representing about 8% of group equity. The company invests in GP surgeries and pharmacies with long leases with a view to generating solid, long-term income streams. This investment is therefore an income play with the added sweetener of long-term capital appreciation. The shares were first tipped at 263p on December 18, 2008, as a relatively safe home for investors seeking income. The shares are up 20% since the initial tip. It remains a buy for income seekers because of the rising yield.

Shares in Mozambique-based titanium miner Kenmare Resources have performed extremely well over the past few months – and yesterday's full-year numbers underscored why. In the year to December, revenues rose to $91.6m (£56.4m) from $26.7m and the pre-tax loss narrowed to $16.7m from £30.4m. The group is expected to swing into pre-tax profits in the current year. The shares are up an impressive 156% since being tipped in September last year. Obviously, after such a strong run, investors may want to top-slice this investment and sell half of their holding, but Questor's rating remains buy.

The Times

There is much to admire about Jupiter Fund Management. When the business was floated in June, it was priced to leave some chance of a gain in the aftermarket. The shares went out at 165p, at the bottom of the indicative range. The City knew what it was buying, because the company had a proven track record. The company continues to pull in funds under management, particularly mutual funds aimed at retail investors. On a straight price-earnings basis, Jupiter is selling on about 14 times' this year's earnings. This suggests a solid enough hold, even if further progress is unlikely to match last year.

Timber is an interesting asset class, offering long-term growth for a commodity that has shown its ability to withstand most of worst effect of economic downturns, but it isn't always easy to get into. Phaunos Timber, named after a Greek of woodlands, floated on the main market late in 2006. It has a good reputation in the City. Net assets grew in value by about $20m in 2010 to $595m. If you can grab the shares, do so and hold on to them.

The Independent

Burberry, the luxury goods group, is expected to maintain its strong momentum by posting a sharp uplift in second-half sales today. The group, which has six stand-alone stores and nine concessions in the UK, is likely to boast of a robust performance across all its divisions and regions. Burberry's shares – which are up by more than 60% in the past year – have been buoyed by persistent bid speculation. Given the valuation of 21 times forward earnings for 2012, we think such a takeover scenario is unlikely. This reinforces our view that Burberry shares are well worth buying, but only when they've called down a bit. Hold.

Jupiter Fund Management's quarterly figures were welcomed by the market yesterday, and rightly so. The fund manager attracted net inflow of £333m, with increased interest from international investors and strong demand for its fund-of-fund range. The future is likely to be positive for the company, giving us confidence in the outlook for its shares. Buy.