Sunday share tips: BBA Aviation, Sainsbury, Porvair
Having timed its purchase of American rival Landmark well, two years ago, BBA Aviation is now enjoying the spoils.
Equity Investment Instruments
11,473.91
17:09 19/04/24
Food & Drug Retailers
3,705.02
17:10 19/04/24
FTSE 100
7,895.85
16:59 19/04/24
FTSE 250
19,391.30
17:09 19/04/24
FTSE 350
4,341.08
17:09 19/04/24
FTSE All-Share
4,296.41
17:08 19/04/24
FTSE Small Cap
6,331.12
17:04 19/04/24
Gordon Dadds Group
n/a
n/a
Industrial Transportation
4,064.87
17:10 19/04/24
Porvair
608.00p
16:34 19/04/24
Sainsbury (J)
258.80p
16:40 19/04/24
Signature Aviation
396.00p
17:15 28/05/21
Syncona Limited NPV
121.40p
16:40 19/04/24
The US-focused company, which specialises in the repair of business jets and turboprop planes, is throwing off more cash than it knows what to do with, The Times's John Collingridge explained.
To be more exact, it generated $224m of cash in 2016, even as it reduced its debt pile to $1.3bn, and analysts now expect that in the coming months it is set to either announce a special dividend or increase its regular payout.
Throw in a new chief executive and the company's shares look 'cleared for take-off'. 'Buy', Collingridge says.
Sainsbury's is a 'buy' for Questor in the Sunday Telegraph, which demonstrates its points by noting new indexes produced by exchange firm BATS called the 'Brexit 50/50' indices, which are designed to help investors assess how Brexit is impacting UK companies. The Bats UK Brexit High 50 is comprised of the 50 companies in the top UK index that derive the largest portions of their revenues from the UK with the Brexit Low 50 comprised of the remaining 50 companies that derive the smallest portions of their revenues from the UK.
The chart of the more domestically focused 50 companies shows this half of the FTSE 100 has struggled, while the other half has surged. Questor believes the Brexit fears may be overdone and these more UK-focused businesses have been oversold. Best of the bunch is felt to be Sainsbury’s, which has improving business fundamentals and a valuation that is much cheaper than its Big 4 supermarket rivals. The grocer, which also owns Argos, may have "most to gain if sentiment against British-focused companies goes into reverse".
Three shares are offered up to buy to cope with whatever 2018 throws at the UK economy by Midas in the Mail on Sunday. Porvair, the £200m market cap technical manufacturer, produces filters used in industrial markets to purify aluminium, commercial markets such as in aeroplanes, in scientific laboratories and purifying water. For the year to end-November, analysts forecast revenues will increase 12% to around £122m and profits 9% to roughly £11m, with a dividend increase to 4.1p too.
Midas also picks Syncona a fund of funds backing UK biotech businesses, which was promoted to the FTSE 250 last March, having arrived on the market as Bacit in 2016 after raising a gross £357.1m through a placing and open offer, buying a portfolio of life science investments from the Wellcome Trust and a majority share in Cancer Research's CRT Pioneer Fund. The investment company is 37%-owned by the Wellcome Trust and Cancer Research UK owns 3.2%. Syncona, which was set up to fund biotech firms for the long term, has investments in seven firms, including eye disease specialist Nightstar Therapeutics, which has floated on the US Nasdaq market and is valued at £290m.
Third from Midas is Gordon Dadds Group, a legal and professional services firm that floated on AIM last August. The business generated annual income of £25m from fees, up from £2.5m at the start of 2013. Management aim to build fee income to over £100m by snapping up small firms that dot the legal market and could benefit from being part of a larger company. For the financial year to end-March profits are forecast to rise 25% to £2.5m, accompanied by a first dividend of 3.3p.
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