Stock Watch 26 October 2009

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

1. RBS - Investors continue to buy despite concerns within banking sector.
2. Barclays – Recent weakness attracts investors hoping for a short term bounce
3. Lloyds Banking Group – Continued buying despite concerns of a possible rights issue.
4. Gulf Keystone –  Buyers hoping for good news regarding oil discovery.
5. Nostra Terra Oil & Gas – Penny share punters push price higher.


The Share Centre’s top 5 shares to follow:

1. Tesco Lower Risk – Long term growth potential from international operations.
2. GlaxoSmithKline Lower Risk – Pharmaceutical giant looks worth tucking away.
3. Compass Group Medium Risk – Restructuring over recent years is set to benefit group further.
4. Serco Medium Risk – Long term contracts provides visibility for the future
5. Hutchison China MediTech Higher Risk – Could benefit from growth in demand for health products in China.

Ratio of buys to sells = 61:39%

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


1. Barclays
2. Debenhams
3. Legal and General
4. Standard Life
5. DSG Internatioal



The Share Centre’s Share of the Week 27.10.09
Company: Charter International
Share price: 653.50p   
Sector: Industrial Engineering
Recommendation:    Buy
Risk category:    Medium
Investment class:    Balanced

Opinion:
First half results, reported in July, saw Charter’s profits fall 62% as economic demand slowed. Charter, with a strong balance sheet, had been restructuring its welding unit, which in part accounted for some of the profit loss, to take advantage of longer-term goals. A sign of Charter’s confidence and strength of its balance sheet was provided when the company decided to maintain its dividend at 7 pence per share. Charter also expected at the time to maintain its cost cutting exercises to maintain profitability.

With hope on the horizon that economic recovery is making headway Charter now looks in a good position to be a benefactor of rising demand even if in the short-term it is only from re-stocking exercises. We would anticipate Charter to be positively affected by recovering steel demand.
Charter should provide some exposure in your investment portfolio to the prospects of global growth; as a business it manages a strong balance sheet and despite the challenges of 2008-09, brokers’ consensus are still forecasting rising earnings over the next two years.


 

This data is provided by Sheridan Admans, 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

2009-10-28 16:09:50 © Moneyextra.com