Join our community of smart investors

Press headlines and tips: Asos, John Wood Group, Primary Health Properties

Our summary of all the shares tipped by the quality papers on Saturday and Sunday
December 17, 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 highlights the worst performers on the FTSE All-Share index over the past year, with CPP Group leading the way with an 88 per cent fall, followed by Promethean World (down 71 per cent) and Aquarius Platinum (70 per cent).

The Independent

No Pain, No Gain: Derek Pain reviews his portfolio and says his best decision of the year was to get out of Hargreaves Services (last IC view: Hold, Dec 2012) with a 283p-a-share profit following unexpected bad news at the coal-to-transport group.

The Daily Mail

Investment Extra: Dan Hyde says gold bugs are already becoming bullish about prospects for 2013, with Goldman Sachs suggesting the gold price could hit $1,800 (£1,112) again within a year, against the current level of just under $1,700.

The Sunday Times

Inside the City: Danny Fortson thinks it unclear at this stage whether the tough action taken by activist investor Edward Bramson at F&C Asset Management, 99p, will leave the business achieving his aim of "managed decline" or else "something more terminal".

Asos (last IC view: Hold, Dec 2012) looks likely to be one of the Christmas winners in the retail sector, although the shares are fully valued and even the "slightest misstep could knock it off its perch".

The Sunday Telegraph

Questor: Garry White says buy John Wood Group, 734p, as a recent pullback in the share price has created a buying opportunity for a business with long-term growth potential.

Buy Primary Health Properties (last IC view: Hold, Sep 2012), 341p, for long-term income.

The Mail on Sunday

Midas: Joanne Hart says buy Kentz Corporation, 394p, as the engineering and construction group is "firing on all cylinders" and expects to grow by at least 10 per cent in 2013.

Update: Hold Central Asia Metals - up 17 per cent over the past five months to 105p - especially now that it is boosting its dividends.

  

Business press headlines courtesy of Weekend City Press Review:

LSE tries to change terms of €463m LCH.Clearnet deal

The London Stock Exchange is in talks with LCH.Clearnet about restructuring the agreed €463m takeover of the European clearing house because of new rules requiring LCH to hold more capital. The LSE is believed to want to reduce the price by as much as €200m, although LCH believes this is too big a cut. Meanwhile, the Office of Fair Trading on Friday gave its regulatory approval for the deal to go ahead. [Financial Times p.13]

Oil trading giant plots £3bn float

Swiss oil trading house Trafigura is working on plans for a £3bn listing of its Puma Energy subsidiary, which owns petrol stations, ports and refineries in 34 countries in the developing world. Trafigura, which in 2006 was controversially alleged to have exported toxic waste to the Ivory Coast, wants to reduce its 65 per cent stake in Puma to a minority holding after an IPO. [Sunday Times pp. 3.1, 3.6]

American vulture fund swoops on stricken HMV

Apollo Global Management has bought more than £20m of struggling HMV's senior debt, putting it in a strong position to take control of the retailer as it 'teeters on the brink' of collapse. Last week HMV warned it was likely to breach banking covenants in the new year, sending the shares down 39 per cent to 2.5p. [Sunday Times p.3.1]

Rolls-Royce accused of second Indonesian bribe

Rolls-Royce is facing fresh allegations that it paid a second bribe of $25m to Indonesia businessman Tommy Suharto in addition to the $20m it allegedly paid him to help secure a $320m aero-engine contract for new aircraft bought by Indonesian airline Garuda. Rolls carried out an internal investigation earlier this year into the bribery allegations and passed details of what it discovered to the Serious Fraud Office. [Sunday Times p.3.1]

RBS close to £350m deal on Libor claims

Royal Bank of Scotland is expecting to face a fine of more than £350m for its involvement in the Libor rate-fixing scandal which has already cost Barclays £290m in fines. RBS is in talks with regulators on both sides of the Atlantic over a settlement, with a deal expected early in the new year. [Sunday Times p.3.2]

Banks face fresh split threat as Parliament eyes new legislation

The Parliamentary Commission on Banking Standards is considering a plan to keep legislation on the statute books forcing banks to split their retail and investment operations, which would only be implemented if the banks failed to improve their behaviour. The plan is among several ideas being considered by the commission ahead of publication on Friday of its report into the Bank Reform Bill. Meanwhile, ITV chairman Archie Norman has made a "passionate plea" in defence of the UK's banks. [Sunday Telegraph pp.B1, B4]

Ofgem accused of serious errors in battle over National Grid spending

National Grid has accused Ofgem of making "numerous errors and questionable judgments" over its decision to cut almost £5bn from the Grid's £33.5bn spending plans. Ofgem is due on Monday to disclose its final decision on the plans and unless there is a compromise the dispute could be referred to the Competition Commission for resolution. [Sunday Telegraph p.B1]

Coming to Britain – plastic banknotes

The Bank of England is planning to introduce 'plastic' banknotes as part of its new £1bn contract for Sterling notes due to come into force from 2015. The plastic - or polymer - notes are likely to be introduced for lower denominations in wide circulation. Tim Cobbold, CEO of De La Rue which is bidding to retain the contract, refused to be drawn on the issue in an interview with the Sunday Telegraph, although he did say the Bank "will absolutely know what is happening in the market place". [Sunday Telegraph pp.B3, B11]

Mothercare chief faces investor backlash over £6.7m bonus deal

New Mothercare CEO Simon Calver faces a potential shareholder revolt at this week’s AGM over his highly-incentivised pay package which could see him earn £6.7m, including a 'golden hello'. Investor group Pirc has advised shareholders to vote down the "excessive" deal, arguing that "golden hellos are not considered in line with best practice". [Independent on Sunday p.85]