Stock Watch, 1 Feb 2010

The Share Centre’s top 5 customer buys from the last 7 days:
1. Lloyds Banking – Investors trading as volatility creates opportunities
2. Barclays – Been weaker than other banks
3. RBS – Cheapest of the banks still finds buying favor with investors
4. BP – Buying ahead of results
5. Afren – Recent exploration updates brings in fresh investors


The Share Centre’s top 5 shares to follow:
1. GlaxoSmithKline Lower Risk – Recent results from Astrazeneca only add credence that Glaxo is the much better of the two
2. Tesco Lower Risk Solid post Xmas trading update highlighted strength of company
3. PZ Cussons Medium Risk – Recent results add further buying conviction
4. First Group Medium Risk – Recent weakness could prove attractive
5. Churchill Mining Higher Risk – Could be a good year for the South American coal miner


Ratio of buys to sells = 72:28


The Share Centre’s Share of the Week 01/02/10
Company: SDL International    Share price: 472    Sector: Software & computer services
Recommendation:    Buy
Risk category:    Higher
Investment class:    Growth
Opinion:

SDL has demonstrated a robust performance during the economic downturn helped by recurring revenues from its translations business as well as acquisitions.

SDL has said that it will not concentrate on acquisitions, preferring to be more prudent with its £45 million cash pile. However it has not ruled out an acquisition completely, saying if the opportunity rose it would prefer to add small technology companies to its portfolio.

SDL has grown its earnings per share over the last eight years, with little to no exposure to debt financing helping to keep financial risk down. This coupled with a robust liquidity position, strong recurring revenues and a high cash pile puts the company in a strong position to take advantage of improving market conditions.

SDL is a buy for those investors that believe companies are truly seeking global growth and that a macro recovery is likely. If this is the case then tools provided by SDL should help those companies meet their objectives.



This data is provided by Graham Spooner, investment adviser at The Share Centre. This is not intended to constitute an offer or agreement to buy or sell investments.

Moneyextra.com recommends you take independent financial advice before acting on any article

2010-02-03 14:01:01 © Moneyextra.com