Stock Watch 17 May 2010

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

1.Lloyds Banking Group – Continued buying after the less than impressive results were released.
2. Barclays – Buying after volatile markets make banking shares look attractive to short-term investors.
3. BP – There has been significant price weakness on BP due to the huge oil spill in the Gulf of Mexico and investors see  this as a buying opportunity, we would be more cautious.
4. Royal Bank of Scotland – Buying ahead and after results had been released.
5. Rockhopper – Investors both buying and selling on the chances of oil being found.


The Share Centre’s top 5 shares to follow:

1. Tesco Lower Risk – Last weeks results confirm Tesco’s dominance and profitability.
2. GlaxoSmithkline Lower Risk – Recent weakness make yield look even more attractive.
3. Barclays Medium Risk – Our preferred play in the banking sector, not for the faint-hearted though.
4. Premier Oil Medium Risk – Recent disappointing drilling results have pushed the share price lower, good opportunity to buy. 
5. Medusa Mining Higher Risk – Gold miner with attractions.
JD

                  
Ratio of buys to sells = 53:47%
Top 5 most searched for companies on www.share.com


1. Barclays
2. RBS
3. BP
4. Banco Santander
5. Taylor Wimpey


The Share Centre’s Share of the Week
Company: BSkyB    Share price: 595.50p    Sector: Media
Recommendation:    Buy
Risk category:    Medium
Investment class:    Growth

Opinion:
The business has favoured a combination of heavy marketing and the launching of new products – high definition, Sky, broadband and telephone services. The strategy is hugely expensive and has been unpopular in the City because of the risks involved. But it has paid off so far, with subscriber figures on track to hit the 10m target. The take up of premium services is going well, and the new telephony and broadband services are gathering speed too.

Q1 figures were released in late April and once again showed a good improvement upward in users and revenues. Higher revenue has been generated from more users signing up to the HD product, 428,000 were added when last year just 243,000 signed up over the same period.

Most importantly for the company was the strong rise in average revenue per customer, this has risen from £452 a year ago to £503 currently.

There are concerns that competition within the sector could take clients away or at least reduce the average revenue spend, clearly this is currently not happening hence why we are upgrading to a ‘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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2010-05-12 09:35:27 © Moneyextra.com