Stock Watch, 4th January 2010

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

1. Lloyds Banking Group – Investors hoping for a rally in share price post rights issue
2. RBS – With the share price below 30p investors are finding it hard to resist
3. Tesco – Investors buying ahead of Christmas figures being released
4. Barclays – Banks finding favour ahead of New Year
5. BP – Price of oil rising close to 80
The Share Centre’s top 5 shares to follow:

1. Tesco Lower Risk – Giant retailer which itself gives it defensive qualities
2. National Grid Lower Risk – Strong dividend should attract investors again in 2010
3. ITV Medium Risk – World Cup year could see advertising rates improve
4. International Power Medium Risk – Worldwide exposure, good yield, solid enough
5. Marstons Higher Risk – Looks cheap and worth tucking away

Ratio of buys to sells = 67:33


Top 5 most searched for companies on share.com


1. Debenhams
2. DSG International
3. Jessops
4. Legal & General
5. Opec Security


The Share Centre’s Share of the Week 04/01/10
Company: Petrofac    Share price: 1014p    Sector: Oil Equipment, Services & Distribution
Recommendation:    Buy
Risk category:    Medium
Investment class:    Growth


Opinion:

This year Petrofac have signed almost 6bn worth of contracts, mostly from the Middle East. Its order book now stands at over 7.8bn and prior to the most recent update they announced a joint venture agreement to create a new service centre facility in Saudi Arabia.

Next year oil production targets are for almost double this year, this would give rise to production of nearly 30,000 barrels a day. The company is now starting to become more of a producer and not just one of the leading service providers in the sector.

Profits are expected to be 25% higher than last year and we can expect a significant jump in the dividend. This is still one for those wanting growth to be buying into but also income seekers may want to start taking a closer look.

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.

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

2010-01-07 09:45:18 © Moneyextra.com