Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

Each week, we round up the main share tips from the Sunday newspapers. For the Financial Mail's stockpicker Midas go to thisismoney.co.uk/midas

For This is Money's mid-week share tips round-up, click here.

Sunday Telegraph
Lloyd's insurer and reinsurer Omega Insurance Holdings revealed last week that it had doubled its profits haul to 22m US dollars (£11.2m) but, more importantly, said it would be paying out a 'substantial' proportion of its earnings as dividends.

Earnings are forecast to be about 23p a share in the current year, and analysts predict that up to 15p will be paid out as dividends - taking the prospective dividend yield to around 10%. Omega has warned that underwriting conditions are not as strong as they were a year ago but rates are still strong in a historic context. With management due to visit investors over the next few days, the dividend message could well see an increase in interest from shareholders.
Verdict: Buy

Shares in oil and gas group Coastal Energy have had a volatile run since listing on AIM in 2005, partly due to the fact that shares are rather tightly held, with a free float of around 30%. But the group, which has onshore and offshore operations in Thailand, is beginning to draw analysts' attention.

Richard Slape at Natexis Bleichroeder has highlighted that the stock offers investors a relatively cheap way to gain access to the Phu Horm gas field, in which Salamander Energy also has an interest. At the same time, the company's two offshore oil fields in Thailand, with recoverable reserves of around 15m barrels, start producing from next year. Buy at 25½p.
Verdict: Buy

Restaurant group Clapham House saw its share price surge last September after it said in a trading statement that it had identified 100 sites for new branches of its Gourmet Burger Kitchen chain. Shares were as high as 341p earlier in the year before investors began taking profits amid the market turmoil in February.

Since then the stock has continued to slip lower, but a share placing on Friday went down well with investors and the group still appears to have solid plans for growth. With strong trading reports elsewhere in the sector, there is a general expectation that shares will begin to move back to their previous highs. With shares currently at 319½p, the recommendation is to buy.

Verdict: Buy

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