Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

Each week, we round up the main share tips from the Sunday newspapers. For the Mail on Sunday's stock picks read the Midas archive.

Sunday Telegraph

Shares in Clapham House were boosted last week after it sold its restaurant chain Bombay Bicycle Club for £4.4m.

The decision made sense as the business had become more of a takeaway and delivery operation than a set of curry houses, and Clapham House needed the cash. The company will use the money to pay down debt, and it will allow management to focus on other brands such as The Real Greek and Gourmet Burger Kitchen.

Gourmet Burger Kitchen is one of a host of upmarket burger joints, and seen as by far the best player in the market.

The Bombay sale will reduce Clapham House's net debt to £15m and will increase interest cover. Its shares are rated a buy.

BG Group's hostile bid for Origin has demonstrated the value of new and unconventional sources of gas. Most of the interest has been in coal seam methane assets in Australia, but there are other areas around the world equally attractive.

In India, Great Eastern Energy was one of the first movers in the coalbed methane sector. Its Raniganj South asset is viewed as one of the best projects in the country and estimated reserves have recently risen by around 40%.

Recent activity shows that the company is beginning to deliver on its promises of drilling 30 wells this year and laying the necessary pipelines.

Great Eastern is expected to move into profit next year, thanks to the sharp rise in prices it can command. It is also understood to be close to a sales agreement with a leading industrial customer.

Early-stage oil and gas exploration operations always carry an inherent risk, but Great Eastern could deliver far greater rewards than some of its peers.

All things considered, its shares are rated a buy.

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