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Press headlines and tips: Glenstrata, Sirius Minerals, Gemfields

Our summary of all the shares tipped by the quality papers on Saturday and Sunday
November 26, 2012

Welcome to our summary of the weekend's quality press tips, provided on Mondays by Weekend City Press Review.

PRESS TIPS:

The Times

Tempus: Martin Waller thinks the completion of the Glencore merger with Xstrata - to become Glencore Xstrata International - should see a substantial re-rating by analysts of the stock in the first half of next year (Last IC rating: Hold, 21 Nov).

The Independent

No Pain, No Gain: Derek Pain has added Essenden, 24p, to his portfolio as the leisure company is finally on a recovery track (No IC rating).

The Daily Mail

Investment Extra: Ian Lyall thinks hydrogen fuel cell developer AFC Energy is worth considering for those interested in the alternative energy sector, although they should be prepared to wait a long time for any return (Last IC rating: Hold, 9 Jul).

The Sunday Times

Inside the City: Iain Dey has doubts about the effectiveness of new Aviva CEO Mark Wilson, whose experience involves operating in growth markets rather than pruning a company with no obvious growth prospects - as is the case for Aviva. Investors who were advised to 'take a look' at the stock in August, should bank the 15 per cent profits earned since then (Last IC rating: Buy, 9 Aug).

The Sunday Telegraph

Questor: Garry White says avoid Mothercare, 300p, as it looks fully valued ahead of what will probably be a 'challenging Christmas' (Last IC rating: Hold, 23 Nov).

■ Buy Sirius Minerals, 22p, as a speculative play on the potash mine it is developing in the North York Moors National Park near Whitby (Last IC rating: Buy, 22 Nov).

The Mail on Sunday

Midas: Joanne Hart believes the gold price has further to go and investors should include some exposure to the precious metal in their investment portfolios.

Update: Take some profits in Gemfields, up 21 per cent to 35p since being tipped in March, but hold the rest for the potential boost from moves to acquire the Fabergé jewellery brand (Last IC rating: Hold, 22 Nov).

 

Business press headlines courtesy of Weekend City Press Review:

Cameron rejects EU budget deal

Talks on the proposed new seven-year EU budget deal broke down in Brussels on Friday after the UK, Germany, Sweden and the Netherlands failed to get the EU to accept €30bn of further cuts, including reducing the costs of administration. David Cameron was careful to stay in line with other leaders opposed to the new budget to avoid being blamed for the collapse of negotiations. EU president Herman Van Rompuy will try again next year to reach an agreement. [Financial Times pp.1, 6]

Police probe Brown think tank

The International Centre for Financial Regulation, a City think-tank backed by Gordon Brown, may close unless it can recover funds allegedly embezzled by a member of management who has since been suspended. Then Centre, chaired by Lord Currie, was set up five years ago by Brown with substantial public and City funding to lead the global debate on financial regulation in the wake of the credit crunch. City of London Police are investigating the alleged embezzlement. [Sunday Times p.3.1]

Tucker poised to land Bank job

Paul Tucker could be promoted from deputy governor to Governor of the Bank of England as early as this week, according to 'government sources'. Tucker is seen as the most likely successor to Sir Mervyn King, although there is still an outside chance that either Lord Burns or Sir John Vickers could get the job. [Sunday Times p.3.1]

Howard crowned hedgies' king

Brevan Howard co-founder Alan Howard heads the first Sunday Times Hedge Fund Rich List with a fortune estimated at £1.4bn. The list has been compiled by Philip Beresford, based on research by Hedge Forensics. David Harding of Winton Capital Management is second on the list with a £900m fortune. [Sunday Times pp.3.1, 3.7-3.10]

Revealed: Germans' 'spy' inside Dyson

German engineering group Bosch has been accused by Dyson of industrial espionage, allegedly paying a Chinese electrical engineer £11,650 over a 16-month period to steal secret designs and technical information. Dyson has filed a claim in the High Court against Bosch detailing its allegations, with Bosch retaining City law firm Herbert Smith Freehills to counter the charges. [Sunday Times p.3.1]

Lynch: HP infighting wrecked Autonomy

Autonomy founder Mike Lynch has claimed that the 'stifling' corporate culture at Hewlett-Packard, which allegedly included 'management infighting', effectively destroyed the software company he sold to HP in 2011 for £7bn. Last week HP wrote-off £5.5bn from the value of Autonomy, sparking a bitter transatlantic war of words between Lynch and HP chief executive Meg Whitman. [Sunday Times pp.3.2, 3.5]

Axe looms over BAE shipyards

BAE Systems is preparing to decide before Christmas to close one of its UK shipyards, according to UK chief executive Nigel Whitehead in an interview with the Sunday Telegraph. Whitehead said the company expected 'a reduction in footprint' in its shipbuilding activities which 'might actually be the cessation of manufacturing at one of the [shipyard] sites'. Analysts believe the closure could involve yards at either Portsmouth or Glasgow. [Sunday Telegraph pp.B1, B9]

Malaysians join £1bn race for Stansted deal

Malaysian Airport Holdings, which owns 39 airports in Malaysia including its flagship Kuala Lumpur International, has reportedly joined the £1bn auction for Stansted Airport. Although Manchester Airport Group remains favourite to acquire Stansted, which owner Ferrovial is being forced to sell by the competition authorities, the Malaysian interest should help boost the eventual sale price. [Sunday Telegraph p.B1]

F1 owner in talks over £9bn fund

CVC Capital Partners, the private equity owner of Formula One and the Legoland theme parks, is planning to launch a new £9bn buyout fund in the New Year. CVC hopes that investors are ready to support a new fund in spite of economic uncertainty and EU regulatory curbs, with rivals such as Permira reportedly struggling to persuade investors to commit to investing in new funds. [Independent on Sunday p.85]

BP in secret talks with Russians to import gas

BP has opened talks with Russia’s Gazprom about extending the Nord Stream gas pipeline from Vyborg near St Petersburg to northern Germany and then East Anglia, providing up to 20 per cent of the UK's gas needs. Although the talks were said to be at an 'early stage' a deal could be signed by the middle of next year, with the pipeline extension taking at least two years to build. [Mail on Sunday p.71]