Sunday newspaper share tips

13 April 2012

EACH weekend, This Is Money brings you a round-up of shares being recommended in the Sunday City pages. For the Mail on Sunday‘s Midas column, follow the link under Want to know more in this story. Below are tips from other newspapers.

Sunday Telegraph

After announcing a 15-year extension to its £3 billion contract to manage the UK Atomic Weapons Establishment, support services group Serco (183p) has gone from strength to strength. A £3.6 billion, 25-year deal to run the Merseyrail franchise pushed orders to £9.9 billion in the first half and the firm last week said it has tabled a further £6 billion worth of bids. Interim profits rose 10% to £31.3 million. The Government continues to rely on groups like Serco to provide services for the NHS, schools and the nuclear industry. Keep buying.

Sunday Times

Housebuilder Bellway has a very strong record. Since 1995 the company has increased earnings per share by 20% a year, matched by a post-tax return on invested capital during that period of 18.2%. For any asset, investors should worry when supply exceeds demand, but demand is exceeding supply at the moment, not only for Bellway's houses, but for its shares as well. Schroders owns a 3.2% stake. If Bellway slips up, it will join the likes of Bryant and Wilson Connolly in being owned by larger groups. Buy.

Independent on Sunday

Easynet, an internet service provider through its UK Online plus its pan-European hardware, software and consultancy business, survived the technology boom and bust. The fall in its share price to 135p (Friday close) from a 2,950p high in October 2000, gives new investors an opportunity to snap up the stock at a more sensible price. The business is doing well, with losses falling and Marconi removing a final overhang by selling its 40% stake. Buying into the stock is not risk free, but could eventually pay off.

Sunday Express

Construction firm Costain is set for second half improvements after a 30% rise in interim profits of £6.1 million. Costain has focused in recent years on markets in which it can perform well against rivals. The investment bank Arbuthnot considers it a buy at 35 1/2p.

Strong results from restaurant chain Ask Central demonstrates it is back on track after a difficult trading period. A new American-style diner, Joe Shmo's, suggests it is being innovative. Buy at 154p.

The Business

Results from personnel and logistics group Hays this week should cheer investors looking for improvements in the company's key personnel division. Early signs that a recovery is under way should not be discounted.

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