Stock Watch 16 Nov 09

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

1. Barclays – Investors buying because of the possible lure of a dividend that may be announced soon?
2. RBS – Buying after details of further funding announced.
3. Man Group – Previous share of the week.
4. Lloyds Banking Group – Buying ahead of the rights issue. Why?
5. Vodafone – Slight weakness after results attract investors.



The Share Centre’s top 5 shares to follow:

1. Tesco Lower Risk – Long term growth potential, plus buy ahead of Christmas.
2. BP Lower Risk – Oil price steady and so is dividend.
3. First Group Medium Risk – May benefit from other companies’ woes in the sector.
4. Stobart Group Medium Risk – Logistic provider with long history.
5. Afren Higher Risk – Recently raised over £100 million to help develop oil fields.


Ratio of buys to sells = 64:39%


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


1. Barclays
2. RBS
3. DSG International
4. Opsec Security
5. Debenhams



The Share Centre’s Share of the Week 16/11/09
Company: FirstGroup    Share price: 409.00p    Sector: Travel and Leisure
Recommendation:    Buy
Risk category:    Medium
Investment class:    Balanced
Opinion:
FirstGroup is better positioned than some in the sector as its franchises were secured well before the recession and now qualify for revenue support, so to some extent it has resilience to falling passenger numbers

The market has been growing increasingly nervous about the prospects for the sector into 2010, as the recession hits passenger numbers and possibly ticket prices. This is an investment idea for investors who believe that we are through the worst and are looking for a recovery play.

The recent update reminded investors of the difficult environment, as well as showing how resilient the business is and there will, of course, always be a demand for travel. The group has around 50 pct of its revenues secured by medium term contracts. Less confident investors may wish to drip feed into the stock, there by giving a toe hold, on what is likely to be a bumpy ride.

We note that the Finance Director has recently been buying shares along with one analyst highlighting the potential of higher profits in 2011. A long term income and growth storey that is geared to an economic recovery.


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.

The Share Centre is authorised and regulated by the Financial Services Authority.

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

2009-11-19 13:31:49 © Moneyextra.com