Join our community of smart investors

Five slow but steady winners, Pan African's transformational deal and getting to grips with new risks

With liquidity pumps turned on and flowing freely, 25 EU member states agreeing to tough new fiscal rules, and strong starts to the year in the markets, what could be worrying investors now? Plenty, of course. Deep rooted obstacles to growth would be one of those worries, leaving investors concerned that investments made now could struggle to flourish. But that risk can be dramatically shrunk by buying undervalued shares, and/or companies entering a transformational phase. In our stock screen this week, we've looked for fundamentally sound companies which have been out of the spotlight but have continued to show steady earnings growth during the past few difficult years. If they can do that, they must be doing something right. Attached to these neglected shares, we want forecasts for continued earnings growth at the same level for the next 12 months. Algy Hall has used the approach espoused by the incredibly successful US fund manager John Neff to turn up 5 shares that fit the bill. Meanwhile Martin Li explains how a deal being signed by Pan African Resources should boost its gold output to around 140,000 ounces a year and in the process transform the company's prospects. Lee Wild reports on packaging company RPC, up 90 per cent since our buy tip and recommends what action to take now; while Jonas Crosland offers an update on one of our Tips of the Year which is already showing a gain of 9 per cent. Finally, M&G's bond fund star Richard Woolnough explains to personal finance editor Moira O'Neill why the risks for bond investors have changed.
January 31, 2012

With liquidity pumps turned on and flowing freely, 25 EU member states agreeing to tough new fiscal rules, and strong starts to the year in the markets, what could be worrying investors now? Plenty, of course. Deep rooted obstacles to growth would be one of those worries, leaving investors concerned that investments made now could struggle to flourish. But that risk can be dramatically shrunk by buying undervalued shares, and/or companies entering a transformational phase. In our stock screen this week, we've looked for fundamentally sound companies which have been out of the spotlight but have continued to show steady earnings growth during the past few difficult years. If they can do that, they must be doing something right. Attached to these neglected shares, we want forecasts for continued earnings growth at the same level for the next 12 months. Algy Hall has used the approach espoused by the incredibly successful US fund manager John Neff to turn up 5 shares that fit the bill. Meanwhile Martin Li explains how a deal being signed by Pan African Resources should boost its gold output to around 140,000 ounces a year and in the process transform the company's prospects. Lee Wild reports on packaging company RPC, up 90 per cent since our buy tip and recommends what action to take now; while Jonas Crosland offers an update on one of our Tips of the Year which is already showing a gain of 9 per cent. Finally, M&G's bond fund star Richard Woolnough explains to personal finance editor Moira O'Neill why the risks for bond investors have changed.