Stock Watch 12 October 2010

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

1. BP – RBS believe that BP will pay a 7c dividend as early as February.
2. Encore Oil – Still being bought by speculators on more oil being found or a bid coming through.
3. Barclays – Shares fell below 300 pence which for some investors seems too good.
4. Royal Dutch Shell – Oil company that investors can rely on for a dividend.
5. BHP Billiton – Looking more likely that a bid for Potash will be successful.


The Share Centre’s top 5 shares to follow:

1. Glaxosmithkline Lower Risk – Good yield and issues with US resolved.
2. Tesco Lower Risk – Buy ahead of Christmas trading.
3. Greggs Medium Risk – Good results last week, strong demand for bacon butties.
4. Premier Oil Medium Risk – Another alternative for those wishing to invest in the North Sea.
5. Booker Higher Risk – Expansion into India could be pivotal for the company.


Ratio of buys to sells = 62:38%


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


1. ROK
2. Taylor Wimpey
3. Opsec Security
4. Legal & General
5. Debenhams


The Share Centre’s Share of the Week
Company: British Airways    Share price: 460p    Sector: Retail
Recommendation:    Buy
Risk category:    High
Investment class:    Balanced
Opinion:
On many a high street you can now find a Greggs outlet, and its expansion over the last three years has almost gone unnoticed. Many investors would have been put off by the high price of Greggs in the past -they reached a peak back in 2007 when they were trading at over £53 per share, but in May 2009 they decided to complete a 10-1 share split and the shares became more accessible for the smaller investor.  

Greggs updated the market in early October and sales have continued to show a healthy increase. Bacon rolls have been behind the latest rise and are now Greggs’ best selling sandwich.  Breakfast sales have also been strong and the company is expanding its range to include dangerously exotic creations such as croissants and pain au chocolat, as well as the health conscious eater’s favourite, porridge.

A further 32 retail outlets have been opened this year and there are now 1,451 shops as at 2 October.

Concerns have recently been raised though as higher wheat prices could and probably will affect the bottom line. We feel however that Greggs will be able to get over this short-term problem. The company are forecasting a slower and more difficult second half of the year but the strong cash balance and good management should be enough to push the company further forward. Continue to buy




THIS DATA IS PROVIDED BY NICK RAYNOR, 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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2010-10-14 09:14:49 © Moneyextra.com