Stock Watch 24 August 2010

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

1. BP – Price weakening as well not completely sealed yet, investors buying on this weakness.
2. Rockhopper Exploration – Buying ahead of drilling update which was released last week.
3. Aviva – Investors hoping that RSA may make a bid for the whole company.
4. Lloyds Banking – Slowly weakening after results were issued, buying on the weakness.
5. Cove Energy – Discovers oil last week but is still unsure if commercially viable.



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. Glaxo Lower Risk – Received recent approval for new drug, strong pipeline.
3. Tui Travel Medium Risk – Other travel companies are going bust could pick up more business.
4. Intercontinental Hotels Medium Risk – Good update last week, bookings on the rise.
5. Pinewood Shepperton Higher Risk – Buy ahead of results issued soon.


Ratio of buys to sells = 62:38%



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


1. ROK
2. Thomson Reuters
3. Xstrata
4. Opsec Security
5. Taylor Wimpey


The Share Centre’s Share of the Week
Company: Reckitt Benckiser    Share price: 3151p    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

 

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2010-08-25 11:59:09 © Moneyextra.com