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. And here are the tips from the Sunday Telegraph and The Business:

Sunday Telegraph

SHARES in camera retailer Jessops have almost halved since the company floated at 155p in October. Conditions have been tough since its good Christmas performance, forcing the company to warn on profits in March.

Last month's news that electricals giant Dixons will stop selling traditional 35mm cameras does not bode well for a specialist camera retailer. Some signs have been spotted that the camera market is picking up, but many in the City feel the potential for more profits warnings is still there. Sell at 82.5p.

Financial services firm Old Mutual finally outlined its £3.3bn bid for Swedish insurance firm Skandia last week and has the support of investors holding 15.6% of its shares.

Investors are looking at the details and it appears to be a logical deal: generating savings, driving revenues growth and reducing Old Mutual's exposure to South Africa.

Its existing business in South Africa is performing well and the UK asset management operations are increasingly robust. Buy at 141.25p.

The Business

ULTRA, which designs and manufactures electronics for defence and aerospace industries, has a long history of strong growth. About one-third of revenues are earned in the US - helped by a security deal with the government - and the firm has around 60 or so niche technologies.

The current order book is at 15 months' sales, the war on terror has led to substantial spending increases and there is every expectation of a further round of industry consolidation.

Shares are currently worth 828p each, but could rise to more than 1200p.

Intertek - one of the biggest players in the sector for testing and inspection - has a good long-term record.

It benefits from the move of manufacturing to China because its margins are higher there and its strong relationships with firms have helped it to retain business.

There are few large competitors to Intertek and its profits are expected to rise from £80m to £86.2m this year. Its shares are expensive at 758p, but profits are expected to grow by one-fifth next year.

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