Stock Watch 17 August 2010

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

1. Connaught – Some investors who took the gamble must now be disappointed, very volatile still.
2. BP – Buying still evident despite most of the news being out now.
3. Lloyds Banking – Hopes of further recovery in the banking sector, unlikely in the short-term.
4. Gulf Keystone – Buying ahead of drilling update released on 16th Aug, which was negative.
5. Barclays – Dividend improving; our preferred play in the sector


The Share Centre’s top 5 shares to follow:

1. Reckitt Benckiser Lower Risk – Looking to aggressively expand the company, latest purchase being SSL International.
2. Compass Lower Risk – Trading update in-line with expectations; worth adding to a portfolio.
3. Rio Tinto Medium Risk – Debt has been reduced and could well be clear by next year.
4. Stobart Group Medium Risk – Results due out shortly, buy ahead of the release.
5. ITV Higher Risk – Share price below 50 pence, looks cheap.


Ratio of buys to sells = 62:38%

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


1. Opsec Security
2. RBS
3. Legal & General
4. Taylor Wimpey
5. Banco Santander


The Share Centre’s Share of the Week
Company: Reckitt Benckiser    Share price: 3119p    Sector: Household Goods
Recommendation:    Buy
Risk category:    Lower
Investment class:    Growth
Opinion:
There is no rocket science to Reckitt’s strategy; it’s simple and well executed. So long as core products remain strong, the company’s constant stream of innovations should keep sales moving upwards. Even on a steep earnings multiple there remains long term upside potential.

The group has a history of being conservative with its growth targets, enabling them to increase it as the year progresses.  Uncertainty over when generic competition will start to hit its sales of a heroin addiction treatment in the US has limited overall group targets.

Despite the tough consumer environment the strength of the portfolio should enable the group to make steady progress. The latest acquisition of SSL accelerates a move to the higher margin health and personal care sector. The latest update reported further growth despite a slowing of sales in Europe. There was no upgrade to its full year guidance.

The recent fall in the share price provides an entry point for lower risk investors geared more to long term growth


THIS DATA IS PROVIDED BY SHERIDAN ADMANS, 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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2010-08-17 16:20:05 © Moneyextra.com