Stock Watch 29 June 2010

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

1. BP – Investors are still buying into the battered oil company.
2. Kea Petroleum – Poor drilling results have not put investors off buying.
3. Barclays – Buying ahead of the G20 meeting that happened at the weekend just gone.
4. Lloyds Banking Group – Buying ahead of the G20 meeting that happened in the weekend just gone.
5. Booker – The Share Centre share of the week commencing 21st June.


The Share Centre’s top 5 shares to follow:

1. Tesco Lower Risk – Could benefit from consumers stocking up for the World Cup.
2. GlaxoSmithkline Lower Risk – Recent weakness in share price pushed yield higher, looking cheap also.
3. BHP Billiton Medium Risk – New Australian Prime Minister may have re-think over the ‘super-tax’ planned to be implemented on Mining companies.
4. Royal Dutch Shell ‘B’ Medium risk – Good alternative to BP, solid yield, currently over 6%.
5. Hambledon Mining Higher Risk – High risk play within the gold mining sector.


The Share Centre’s Share of the Week
Company:
Essar Energy    Share price:
453.8p    Sector:
Oil and Gas producers
Recommendation:    Buy
Risk category:    Medium
Investment class:    Growth

Opinion:
Essar came to market in early May this year and immediately disappointed; the share price slipped from its 420 pence listing to as low as 358 pence.  Since then the shares have rallied and have benefitted from other companies’ woes within the sector as investors seek alternatives.

Essar would be a reasonable investment we feel as this enables investors to have access to a rapidly expanding economy, India and with that expansion comes certain needs, the need for power and energy. Essar covers both of these bases with its oil and gas exploration business and the power generating side of the company.

We are not sure if the company intend to issue a dividend but we are confident that the share price should provide enough interest for investors, hence we commence coverage with 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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2010-07-01 09:31:50 © Moneyextra.com