Stock Watch 01 June 2010

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

1. Barclays – Weakness has attracted new investment.
2. Rockhopper Exploration – Investors still punting on Rockhopper, conformation of the quality of find should be released soon.
3. Lloyds Banking Group – As shares fall close to 55 pence investors continue to buy.
4. National Grid – Increased activity on back of rights issue.
5. BP – Price weakness continues and investors buying for the long-term.


The Share Centre’s top 5 shares to follow:

1. Alliance Trust Lower Risk – Global exposure easily achieved with this investment trust.
2. Reckitt Benckiser Lower Risk – Recent weakness could provide a nice entry level for investors.
3. G4S Medium Risk – Unsettled world should provide future contracts for this security group
4. Babcock International Medium Risk – Hopes that VT acquisition will be a long term positive
5. JD Sports Higher Risk – Buy ahead of the World Cup, sales could improve.


Ratio of buys to sells = 68:32


Top 5 most searched for companies on share.com


1. Barclays
2. Banco Santander
3. Ospec security
4. DSG International
5. Royal Bank of Scotland


The Share Centre’s Share of the Week
Company:
Babcock international    Share price:
568.00p    Sector:
Support services
Recommendation:    Buy
Risk category:    Medium
Investment class:    Balanced

Opinion:
Babcock has a diversified product base with a large international presence and in the long term there is growing hopes for opportunities in the nuclear area.  Our feeling is that Babcock could do well from this, due to its existing contracts and ties with the Government.

Following takeover talks with VT Group, Babcock agreed a price of 735 pence per share on 23 March.  The offer consists of 361.6 pence in cash and 0.701 of a share in Babcock for each VT Group share. 

Babcock issued final results and reported a rise in profits in the year to 31March and said it expected to see continuing demand for its efficiency-delivering services as pressure on public spending increases. Babcock’s main customer is the Ministry of Defence and this relationship should grow stronger with the takeover of VT Group, another beneficiary from MOD contracts.

The tie up with VT Group will give the company a large presence in the technical training sector.

The dividend has been increased and should start to appeal to investors looking for a share that offers growth and income opportunities. We hope that the acquisition of VT combined with future contracts from the government efficiency drive will reward over the long term


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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2010-06-02 16:27:01 © Moneyextra.com