Graham Spooner, Investment Adviser at The Share Centre, looks at last week’s top buys and this week’s top tips.
The Share Centre’s Customer top buys from the last 7 days
1. Barclays – Latest banking scandal leads to more volatility in sector, attracting short term traders.
2. Gulf Keystone – Vague bid rumours gets the market excited.
3. Aviva – News of plans to sell off more parts of the business impressed some followers of the sector
4. Xcite – Continued hopes for potential of exploration.
5. Glencore – The continued uncertainty over the proposed merger with Xstrata has led to a fall in the
share, which in turn has attracted investors.
The Share Centre’s top tips for this week
1. Compass Group (lower risk) Food support services group, with well regarded management. Viewed as having some defensive qualities, an improving dividend and share buyback scheme, which should all help support the share price.
2. United Utilities (lower risk) With the markets again in a nervous frame of mind, defensive sectors have come to the fore. This water company services the North West of England and currently has a yield of around 5 pct. There have been a number of take-overs in the sector in the past and vague rumours of a bid in the sector have again been circulating.
3. Babcock International (Medium risk) The support service group have come out with very confident trading updates in recent months and could be set to benefit further from the proposed changes to the Army. The order book looks healthy providing a level of long term visibility. This has been boosted by the contract for decommissioning nuclear establishments.
4. Vodafone (Medium Risk) There is growing thoughts that the company could again benefit from another dividend from its holding in US company Verizon. An already attractive dividend yield could be boosted further as a result.
5. Afren (Higher risk) The recent fall in the share price could be viewed as a buying opportunity for investors looking for a higher risk oil exploration company, with a good track record and well regarded management. The group has made its name looking for oil in Africa, but has also branched out into Kurdistan.
Graham, whose 35-year career has taken him via Chase Manhattan Bank and City of London Investment Management, now advises on a wide range of investments including retail stockbroker Share.com
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Warning: Remember, particularly if you are new to trading in the stock market and in forex, that the prices of shares and other investments can fall fast and you may not get back the money you originally invested. The material here is for general information only and is not intended to be relied upon for individual investment decisions. Take independent advice before making such decisions. Also, the BullBearings free stock exchange simulation portfolios are a good way to practice trading techniques.
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