Market Watch, 5 Oct 09

The Share Centre’s top 5 buys from the last 7 days:

1. RBS - Investors continue to buy despite concerns within banking sector.
2. BP – High yield attracts investors in low interest rate environment.
3. Lloyds Banking Group – Continued buying despite concerns of a possible rights issue.
4. BG – The group’s potential resources continue to interest investors.
5. Balfour Beatty – Recent fall in share price may be overdone.

The Share Centre’s top 5 shares to follow:

1. National Grid Lower Risk – Defensive nature of business will be attractive if market rally peters out.
2. GlaxoSmithKline Lower Risk – Pharmaceutical giant looks worth tucking away.
3. Inmarsat Medium Risk – Satellite market set to boom over the coming years.
4. Serco Medium Risk – Long term contracts provides visibility for the future.
5. OPG Power Ventures Higher Risk – At current levels company looks undervalued.
 

Ratio of buys to sells = 64:36%

Top 5 most searched for companies on www.share.com

1. RBS
2. Lloyds Banking Group
3. Barclays
4. Gulf Keystone Petroleum GKP
5. Yell Group

 

The Share Centre’s Share of the Week 05/10/09
Company: Hutchison China MediTech    Share price: 158.00p    Sector: Health Care Equipment
Recommendation:    Buy
Risk category:    High
Investment class:    Growth
Opinion:

Sales results for the first half of the year have been encouraging and expect full year results to reflect such growth. Strong sales growth coupled with a growing cash balance should provide support for the Research and Development division, as well as possible expansion to its other business and exploring potential acquisitions, as suggested in the Chairman’s Statement.

In addition to sales growth and the rapidly growing health care market in China which makes this an interesting stock to look at the company is also making an impact in the pharmaceutical market with a pipeline of drugs in various stages of trial. Most notably are the encouraging results it has had with its drug HMPL-004, which should assists in combating Crohn’s Disease.

We recommend Hutchison China MedTech as a buy for those investors that want exposure to China and in particular the potential for growth in its health care market.  This is for investors that have at least a medium term investment horizon and a high appetite for risk.


Please note that Hutchison China MediTech trades on AIM and can not therefore be held in an ISA.


This data is provided by Graham Spooner, investment adviser at The Share Centre. This is not intended to constitute an offer or agreement to buy or sell investments.




 

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2009-10-08 10:10:59 © Moneyextra.com