Shares portfolio: Ferrexpo stock a cast-iron bet
Ukraine mining giant Ferrexpo wins approval from Goldman Sachs, but the bank has more concerns over shares from insurer Hiscox.
The Standard's City team rates which stocks to buy and sell, with analysis on the top traders' deals and what to expect from the markets.
BUY: Ferrexpo
Goldman Sachs rates Ukraine-based mining giant Ferrexpo a buy as its analysts initiate coverage of the stock. It says big projects bring the potential for increases in output, and it particularly likes the group because of its "pure play" exposure to the iron-ore market. Goldman sets a target of 400p for the shares, which were today at 280p.
SELL: Findel
Seymour Pierce takes a negative view of home shopping group Findel despite its sale today of two more businesses — online gadget retailer I Want One of Those and wedding brand Confetti Network. Although at 7p the shares now look a tad more interesting, the business is still in "intensive care", says Seymour analyst Freddie George.
HOLD: Hiscox
Goldman is concerned by the outlook for shares in insurer Hiscox. Not that the business is doing anything wrong — just that the shares have risen 25% since joining the Goldman buy list in 2008. With a target of 400p against today's 351.6p, Goldman downgrades from buy to hold.
Tomorrow's agenda
Investors in Imagination Technologies will be hoping that Friday 13 will not prove unlucky for the chipmaker, which holds its annual meeting of shareholders.
In June, Imagination delivered a more than tripling in full-year profits as it benefited from strong demand for its chips, which are used in products ranging from Apple's iPhone to digital set-top boxes and net-books. At the time, chief executive Hossein Yassaie said this year should prove even better.
Last month, Panmure Gordon raised its rating on Imagination from hold to buy, arguing the company has a unique exposure to growing demand for smartphones and tablets.
Trader talk
Gartmore's small-cap specialist hedge fund AlphaGen Volantis has lifted its stake in management services and outsourcing business Management Consulting from 88.17 million shares to 88.73 million, or 21%, worth around £23.95 million at a share price of 24p.
Read More
Managed by Rob Giles and Adam McConkey, the fund is also supported by the company's well-regarded head of small cap investment Gervais Williams. While it operates a series of opportunistic incremental satellite positions, the size of the stake in a relatively modest fund suggests it is a core growth prospect.
The company's profits were up 1% in the first six months to the start of August. Revenue fell 15% to £131.3 million but debt was cut by 6%. The company predicted a stronger second half, saying that it expected a further 20% fall in overall borrowing.
