Sunday newspaper share tips

By THIS IS MONEY
Updated:

 

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

The Sunday Times
At 45 1/4p there's plenty of upside in telecoms carrier Colt Telecom for the bold investor - but it will be a bumpy ride. Colt has built a great network across Europe and if it survives the current slowdown, it should be hugely profitable.

A proposed debt restructuring could provoke a re-rating of shares in Channel Tunnel operator Eurotunnel (70 3/4p). The complex scheme could reduce total debt by £400 million and given Eurotunnel's good record of doing similar deals in the past, it might be worth a bet that they will pull it off again.

Put away shares in pumps and plant hire group Andrew Sykes, chaired by 81-year-old Jacques Murray. The company is not paying dividends, Mr Murray controls nearly 70% of the shares, and the board is buying in stock, which all suggests that Sykes will be taken private and the take-out price should be significantly higher than the 96 1/2p at which the shares closed on Friday.

The Sunday Telegraph
Take a fresh look at fashion retailer New Look (239 1/2p). Teenage girls have been flocking to its stores to grab spiced up ranges and the group last week said its full-year profits would be double the amount forecast by brokers in August.

Minorplanet Systems (300p), the supplier of satellite-based vehicle tracking devices, is rumoured to be close to a major deal with a motor manufacturer. A new version of its tracking boxes is also just weeks away from launch. Both events should drive the shares. Buy.

Shares in Intermediate Capital, a specialist provider of mezzanine finance used in buyouts, are still good value at 827p. The company had a testing 2001 but the there are signs of life in the IPO market and Intermediate has stakes in four firms earmarked for sizeable floats, including DIY chain Focus Do It All.

Menswear distributor Marchpole Holdings (4 1/4p) seems to have sorted itself out after a third boardroom shake up in under two years. It has a licence agreement with Jasper Conran in the UK and has moved into young people's clothing with the FUBU line in a venture with Lennox Lewis Merchandising. A buy for the brave.

Primary Healthcare Property (176 1/2p) develops, buys and invests in medical centres, GP surgeries and dental surgeries. Almost all its covenants are government-backed making it a safe haven with impressive growth prospects. Buy.

The Sunday Express
Chorion's plan to demerge its bars and Tiger Tiger nightclub chain from its intellectual property business, which holds the rights to Noddy, may unlock value and some see the IP operation as a bid target. Shares look good value at 18 3/4p.

The strength of the housing market bodes well for construction-to-support services group Kier and with increased government spending likely to underpin earnings, there is room for growth at 647 1/2p.

Travel industry marketing services firm Watermark, which provides airlines with such items as blankets and toothpaste, has bounced back strongly from September 11. It continues to win business and shares should be higher than 93 1/2p.

The Observer
While a trading update from supermarket chain Sainsbury's may this week show it is beginning to take market share from its rival Tesco, the potential in Tesco's overseas business, which ranges from Hungary to Thailand, makes it by far the better bet at 248p. Tesco reports full-year figures on Wednesday and these are set to show its foreign businesses are making dramatic strides and are on course to be a significant contributor to Tesco's overall earnings growth.

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