Stock Watch, 23 November 2009

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. BP – Price of oil steadies and BP has the added attraction of a good yield.

3. Lloyds Banking Group – Traders still support the banks.

4. RBS – Traders still support the banks.

5. Vodafone – Strong dividend and reasonable figures encourage further investment.
 


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. PZ Cussons Medium Risk – Could benefit from the sale of Christmas related products.

4. BHP Billiton Medium Risk – Most diverse mining company on the market.

5. Modern Water Higher Risk – First revenues from project in China boosts attractiveness.
 


Ratio of buys to sells = 63:37%


 
Top 5 most searched for companies on www.share.com
 
1. Opsec Security

2. Standard Life

3. Barclays

4. RBS

5. Debenhams
 


The Share Centre’s Share of the Week 23/11/09
 
Company: Modern Water
 Share price: 88.50p
 Sector: Gas, Water and Utilities
 
Recommendation:
 Buy
 
Risk category:
 High
 
Investment class:
 Growth
 
Opinion:

Modern Water joined the AIM market in 2007 and is still in its early stage of development. Currently they are not making any money but the potential could be considerable.

One of Modern Water's core assets is a desalination technology that uses a patented Manipulated Osmosis MO process to achieve high cost and energy savings compared with existing plants. This, and other portfolio products are being progressed towards full commercialisation, and Modern Water's experienced management team is focused on bringing these leading edge technologies to the market.


Modern Water is targeting water-stressed regions such as the Middle East, Australasia, the Mediterranean and the Caribbean. A plant for Modern Water's MO desalination technology is already producing water in Gibraltar, and a second plant has just started production in Oman.

Modern Water also own 76% of Cymtox, a subsidiary which uses bacteria to monitor water and wastewater supplies for early signs of unwanted toxins, including metals, solvents, petrochemical compounds, pesticides and herbicides. Recently it announced that this business had received its first revenues after selling units to China, another area where there is potential for growth.

This one is certainly not for the faint hearted and as it is listed on the AIM index and cannot be bought into an ISA.  With demand for drinking and safer water so high and the resource becoming scarcer this is one to tuck away for the long term. Investors should be aware that there is a wide spread on the shares after the recent good news. We would advise building up a holding over a period of time and not chasing the stock too high.
 


 

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

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2009-11-24 10:00:22 © Moneyextra.com