Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

EACH week, we round up the main share tips from the Sunday newspapers. You'll find this week's renowned Midas column from the Mail On Sunday here.

Sunday Telegraph

UTILITY group International Power has suffered from fluctuating electricity prices in the past five years, but should benefit in the medium term as energy prices rise. With some of its mothballed plants coming back on stream, shares have further to go from the current 211p, which is up from 150p in early 2005.

Galliford Try has been more upbeat than most housebuilders, as its niche markets of hospital conversions and affordable housing appear to have been less affected by the recent downturn. It has built 853 units in the past year but wants to double that through acquisitions. Shares, at 63.5p, look cheap.

Star Energy, the UK oil and gas producer, saw its share price fall last week after announcing plans to buy gas storage specialist Pentex Management for £38.5m. Despite the drop, investors believe the deal makes sense, while energy giant Petronas is thought to be in talks to buy 20% of Star, which specialises in redeveloping mature fields into storage sites. Shares are a buy at 196p.

Marketing services company Cello is understood to be close to returning to the acquisition trail with a £7m deal for a branding and marketing business called Value Engineers. Trading is ahead of expectations so far this year while analysts expect revenues to rise by 26% in 2005. Shares trade at a discount to smaller media groups and are worth buying at 120p.

Bold investors should consider a punt on Van Dieman Mines, which is about to start operations in Tasmania. VDM has also made significant progress in procuring an ore-processing plant and has agreed to sell the tin concentrate to a London Metals Exchange trader. Now is the time to buy at 34p.

Sunday Times

AHEAD of its flotation this week, RHM - formerly Rank Hovis McDougall - has attracted buy recommendations from fund managers at Schroders and New Star. The company, which is best known for Mr Kipling cakes and Hovis bread, should be valued at around £950 million when trading starts this week.

Sunday Express

SPECIALIST information publisher T&F Informa is rated as a buy at 392.5p by broker Bridgewell, which said that a recent £768m acquisition of IIR had boosted the company's events business and taken it into a new marketplace.

At 710.5p, listed private equity firm 3i is viewed as a 'tactical buying opportunity' by Merrill Lynch. The broker is encouraged by proposals to return £500m of capital to shareholders, while 3i has ambitious plans to invest in minority firms while its competitors focus on majority controlled buyouts.

The Business

A REVOLUTIONARY method of administering insulin to diabetics could give a major boost to inhalers manufacturer Bespak. It is the exclusive maker of Exubera, which has been developed by Pfizer to deliver insulin in powder form through an inhaler. The short-term outlook appears unexciting but when Exubera gains approval it should provide a boost to shares, which are at 527.5p, said Andrew Hore of Durlacher's Aim bulletin.

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