Old UK Stocks Shares Investment Tips complied by Money sorter at 4 5 2007

UK Stocks and Shares and Investment tips

Top of the Tips: Share Recommendations to week ending 4/5/07

Ones To Buy

Domino's Pizza

The pizza takeaway chain has proved an excellent investment since its flotation on the AIM, rising 15-fold in value so far. This week's trading update shows a 14.6 per cent increase in sales in the 16 weeks to April 22nd and forecasts 8 per cent growth on the year. Buy, says The Times.

ARM

ARM's royalty-based business model provides them with a diverse and steady income stream. Although they are still dependent on the telecoms sector for two-thirds of their revenue, the increased complexity of third-generation mobile phones means that they are not being impacted by reduced sales volumes.

The figures currently look good for ARM, and at 28 times forecast earnings, it represents some of the best value in its sector. Buy, says The Independent.

Ten Alp

Chaired by Bob Geldof, Ten Alp is a small media group that is doing surprisingly well. Originally founded as a radio production company, it is now making successful forays into mainstream TV and internet television – its latest venture is an internet television channel that provides public service information.

Figures suggest solid earnings growth and stable progress – definitely worth a look, according to The Telegraph.

Ashtead

Construction equipment rental company Ashtead operates in the UK and the USA, and last year acquired one of its main US competitors, NationRent – increasing the size of its operations in one fell swoop.

A depressed housing market and the financial structure of the deal resulted in Ashtead's share price dropping dramatically, but in truth it looks like a solid and well-run company, most of whose revenues come from commercial construction – not housing.

It appears to be undervalued in an expanding market – buy and hold, says the Mail on Sunday.

Shire

Britain's third-largest drugs company has made a niche for itself with several specialist drugs. Unlike some larger concerns, it hasn't avoided entering smaller markets and as a result has a strong portfolio of fairly young patents – unlike some of its competitors who face the imminent expiry of some of their cash-cow patents.

Growth is currently running at 20 per cent per year, and despite recent rises the shares still offer good value. Buy, says The Telegraph.

Ladbrokes

Despite rising costs and increasingly tough online competition, Ladbrokes continues to do quite well, with shares trading on a multiple of 16 times forecast earnings and offering a 3.7 per cent yield.

Ongoing private equity interest adds further spice, and these shares are worth owning, according to Questor in The Telegraph.
Ones To Let Go

Alfred McAlpine

The construction services group seems to have put the scandal surrounding some accounting irregularities behind them, but despite reasonably promising future business, it offers no better value than competing companies who have not had McAlpine's troubles.

With shares at 19.4 times 2007 earnings, The Times thinks you should avoid McAlpine.

United Utilities

While Britain's largest listed water company has generally made good progress with its targets, it became the subject of Ofwat's first official fine last week, and is now required to fork out £8.5m in penalties.

Despite this, there doesn't seem anything particularly wrong with the business, but equally there seems no compelling reason for the shares to rise, so it's a good time to take profits, according to The Telegraph.

Ones To Let Go

Alfred McAlpine

With shares at 19.4 times 2007 earnings, The Times thinks you should avoid McAlpine.

United Utilities