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 combined oil group created from the takeover of Ithaca Energy (Last IC rating: Buy, 1 Mar) by Valiant Petroleum (Last IC rating: Sell, 19 Nov) could soon attract a new buyer keen on the tax breaks available from North Sea investment.
■ Synthomer (formerly Yule Catto) looks 'up with events' at 218p (Last IC rating: Buy, 14 Feb).
■ Take some profits in Thomas Cook, 115.5p, after its recent run as the hard work starts now for new CEO Harriet Green (Last IC rating: Hold, 28 Nov).
The Independent
■ No Pain, No Gain: Derek Pain is considering an investment in another oil stock in spite of his past lack of success in the sector, although he is planning 'to wait a bit' before finally deciding whether to take a punt on Amerisur Resources, currently 50p (Last IC rating: Hold, 12 Oct).
The Daily Mail
■ Investment Extra: Ian Lyall says a new business model for Aim-listed technology company Miranda could substantially boost earnings and 'make a mockery of its current market capitalisation of £4m' (No IC rating).
The Sunday Times
■ Inside the City: Danny Fortson thinks it will 'not be long' before Smiths CEO Philip Bowman decides that more radical action is needed at the mini-conglomerate, suggesting a break-up is on the cards (Last IC rating: Buy, 10 Jan).
■ Although a move by Cairn India for former parent Cairn Energy is unlikely, Cairn Energy must now convince investors it has its own plan for the future (Last IC rating: Sell, 28 Aug).
The Sunday Telegraph
■ Questor: James Quinn says hold Tesco, 385p, as investors appear willing to give CEO Philip Clarke 'the benefit of the doubt' over his strategy (Last IC rating: Hold, 10 Jan).
■ Hold JD Wetherspoon, 515.5p, although analysts believe it is having to 'run hard to stand still' (Last IC rating: Sell, 15 Mar).
The Mail on Sunday
■ Midas: Joanne Hart says buy Condor Gold, 141.5p, as the speculative gold play offers 'real potential for the adventurous' (No IC rating).
■ Update: Hold Brammer, tipped in February last year at 276.5p and now 385p, as there is more growth to come (Last IC rating: Hold, 19 Feb).
Business press headlines courtesy of Weekend City Press Review:
Man Group axes chiefs' bonuses as City debate on pay hits hedge funds
Man Group has scrapped some bonuses for its top executives, leading to speculation that the City debate over excessive remuneration has spread to the 'freewheeling hedge fund industry'. Man's recently departed CEO Peter Clarke will not get a bonus for last year or a pay-off, while successor Emmanuel Roman will not receive a bonus for his role as COO last year. The pay details will be unveiled in Man's annual report this week. [Financial Times p.1]
Qataris plot £8bn swoop on M&S
The Qatar Investment Authority is considering an £8bn bid for Marks and Spencer and is seeking support from leading private equity firms and other lenders about financing an offer. The Qataris already own a 26 per cent stake in J Sainsbury but are said to believe this would not lead to a M&S takeover being blocked on competition grounds. [Sunday Times pp.1.1, 3.1]
Britons face £170m Cyprus bailout bill
The EU's €15.8bn Bailout of Cyprus agreed late on Friday could see Britons living in the country, including armed forces personnel, lose up to £170m from a levy on their savings taken directly from their bank accounts. News of the levy saw heavy demand for cash withdrawals from ATM machines over the weekend ahead of the money being automatically deducted on Tuesday following Monday's Bank Holiday on the island. [Sunday Times pp.1.1, 3.1]
Osborne's budget bet on building boom
The Chancellor is expected to use Wednesday's Budget to fast-track 'hundreds of millions of pounds of infrastructure projects', including major motorway upgrades. George Osborne is also expected to initiate a debate over the Bank of England's responsibility for targeting inflation, although he is thought likely to stop short of suggesting the current 2 per cent target should be scrapped. [Sunday Times pp.3.2, 3.8]
US to grab helicopter rescue deal
New York-listed helicopter operator Bristow has beaten Bond Aviation to secure a £3bn, 13-year contract to maintain and operate the UK's search and rescue service in which Prince William is a serving RAF pilot. The privatisation on the service will lead to the closure of some RAF bases and has raised union concerns over safety. [Sunday Times p.3.1]
Waitrose fumes at Ocado's planned tie-up with rival
John Lewis-owned Waitrose is reviewing its contract to supply Ocado with groceries after the surprise news that the loss-making online operation was in talks with Wm Morrison to provide it with technology and operational expertise. Waitrose apparently did not know about the talks in advance and is said to be unhappy that a rival supermarket chain is involved. [Sunday Times p.3.3]
Rising sales at Sainsbury's and Next help to lift recovery hopes
Figures from J Sainsbury and Next this week are expected to show signs of the economic recovery taking hold, according to analysts. Sainsbury's is set to post a 1 per cent increase in like-for-like sales over its last quarter, while Next is expected to disclose a 7 per cent increase in full-year profits. [Sunday Telegraph p.B1]
Osborne drives growth ahead of Budget date
The Budget is expected to see several new measures unveiled to boost national and regional growth, including the planning go-ahead for the Hinkley Point nuclear power station and support for housebuilders. Business rates may also be frozen with possible further reductions in corporation tax signalled. [Sunday Telegraph pp.B1, B5]
Apax approached over potential £1bn sale of Travelex
Foreign exchange business Travelex could be put up for sale by Apax Partners for at least £1bn following an unsolicited approach from a potential buyer in Asia. Apax acquired Travelex in 2005 and the world's biggest non-bank forex business could prove an attractive asset for a large retail bank, including Barclays, Bank of America or Wells Fargo. [Sunday Telegraph p.B1]
Goldman boss: Tie up bonuses
Jim O'Neill, who retires as chairman of Goldman Sachs Asset Management next month, suggests that banks should consider returning to the 'days of partnerships' when it comes to paying bonuses. He believes that keeping bonus payments awarded in shares within the bank until retirement would create a more stable system and help reduce envy over bankers' rewards. [Mail on Sunday pp.77, 80]
