Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

EACH weekend, This Is Money brings you a round-up of shares being recommended in the Sunday City pages. Click here for Financial Mail on Sunday's Midas column.

SUNDAY TIMES
Supermarket group J Sainsbury announced like-for-like sales growth of just 0.3% last week at its core UK retail operations and said it was 'dissatisfied' with the performance. But shares closed up 7p on the week at 270p amid signs that it might be more willing to respond positively to some of the recent criticism.

Former building society Alliance & Leicester is on track to produce half a billion pounds in profit this year, having reported a 12% rise in pre-tax profits to £262m at the halfway stage. Its dividend was increased by 10% to just over 14p and its statutory protection from takeover expires in April.

SUNDAY TELEGRAPH
Mobile phone group Vodafone is this week expected to say it will grow its customer base by 10% this year and deliver a similar increase in revenues. Shareholders will also be asked to give permission for a buy-back of 10% of the shares. Buy.

Last week Alliance & Leicester reported a 12% rise in interim pre-tax profits on the back of strong remortgage sales and impressive growth in personal loans. The shares have been one of the better performing bank stocks and at 866p they remain a buy.

INDEPENDENT ON SUNDAY
Mobile operator Vodafone is this week expected to say average revenue per user in Germany is down, but elsewhere the news is likely to be better with customer numbers expected to have continued growing. This is strictly a short-term buy and should Vodafone start drifting above 140p it might be time to pull out.

SUNDAY EXPRESS
The disposal of the Managed Retail Division at beverage company Scottish & Newcastle has still not been resolved and UK beer division Scottish Courage recorded a 8.9% decline in operating profits due to supply chain disruptions. Although a number of issues need to be resolved the stock is still a buy at 366 1/4p.

Retailer GUS saw strong sales last week with new space contributing 6% to the results. Having already sold Home Shopping and announced the intention to lead a partial IPO of South African businesses, concentration on core businesses should result in further growth. Buy at 740 1/2p.

A poor first half at Cadbury Schweppes confirmed that apart from UK confectionery all key divisions are under significant pressure. A slowdown in UK confectionery and further difficulties in European beverages make it a sell at 362 1/4p.

Construction company SIG saw a 16% increase in the first half after strong demand for housebuilding. Although there are concerns about commercial markets as well as sluggish growth in Europe and the US, Arbuthnot says the price of 300 1/2p is too low and recommends a buy.

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