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Sunday share tips: Stobart, Aureus Mining, SABMiller

Date: Sunday 20 Oct 2013

Hold fire before joining the revival in Stobart Group’s share price, Danny Fortson advised in the Sunday Times’s Inside the City column. The haulage company’s shares have risen 20% since Iain Ferguson was announced as its new chairman. Stobart’s upcoming half-year results will show whether boardroom ructions have hit financial performance. Ferguson is the fourth chairman in nine months and has vowed to change Stobart’s governance after Chief Executive Andrew Tinkler clashed with the previous chairman. Wait to see if peace ensues if you do not hold the shares already, Fortson wrote.

Buy Aureus Mining while the shares are still cheap, the Mail on Sunday’s Midas column advised. Small gold miners often disappoint shareholders but Aureus has so far made good on its promises to investors. It has lots of cash, it will start producing gold in just over a year and it is run by an industry veteran with a record of achieving value for shareholders. At 30p, the shares have been unfairly punished by the market and should move higher as the group nears production and sentiment towards gold becomes more positive. The price is a bargain.

Hold but do not buy into brewer SABMiller at today’s price, the Sunday Telegraph’s Questor advised. The brewer was upbeat about business in emerging markets in its recent trading update and the shares rose. The Peroni and Grolsch maker is also doing well in premium lagers in the UK and the Netherlands. The annual dividend is set to rise 10% to 110c giving a forecast yield of 2.2p%. It is a stock for the long run but trading at 20 times forecast earnings it is a little pricy.

GKN has the wind behind it after its shares hit a record high on October 18th, Danny Fortson wrote in the Sunday Times. The car and aviation parts maker is benefiting from strong orders from Boeing and Airbus and a revival in car sales in the US and parts of Europe. GKN could bid for Boeing parts plants put up for sale by Spirit Aerosystems. A deal would boost GKN’s position with Boeing but GKN is doing nicely anyway, Fortson concluded.

BSkyB is a stock to hold, the Sunday Telegraph’s Questor said. The pay-TV broadcaster continues to gain customers but it now faces a rival in BT – the first time a commercial rival has seriously challenged Sky’s dominance of UK sport. BT’s attack on Sky’s market threatens to increase the price Sky has to pay for broadcasting rights. Sky has a dominant position and may well fend off BT but for the moment it is a share to stick with for the long run rather than buy.

Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.

SF

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