Jump aboard the caravan express
Sunday 30 June 1996
At 34p, the shares are yet to show much headway since a 50-for-1 consolidation last November. But patience should be a virtue in this instance: buy.
LEGAL & General may have risen 56 per cent in 1995, but the shares (669p) could have further to go. Stockbroker Salomon Brothers reckons the share price is at the bottom end of the valuation range for its dividend yield and embedded value - the actuarial calculation which assesses the real value of its outstanding policies. A safe blue chip buy, with the added attraction of being a potential takeover target.
DANKA Business Systems, overshadowed by more pressing concerns at Wickes, escaped some of the publicity this week, when it issued a first-quarter profits warning. The shares have fallen 245p to 468p, although analysts in the UK have only trimmed their forecasts. Analysts in the US, where most of the shares are traded, have slashed their 1996 figures by as much as 20 per cent. The discrepancy suggests there may be some uplift in the shares when the company announces its interim results. However, given that growth has been fuelled by an acquisition-driven rush - 50 in the past year alone - it is hardly surprising there will be hiccups along the way. At present, best avoided.
FURTHER developments at Epic Multimedia Group, where the company is expected to announce a deal with a major US distributor for its CD-Rom title, End Game. The distributor will pay for up-front funding to cover development costs, with Epic collecting royalties on sales. Epic is also sanguine about the effect of the Internet on its core business, and is working on various on-line products. Worth a punt at 76p.
ANOTHER attempt by a stockbroker to establish a model for developing the best valuation of a stock price, this time from Merrill Lynch. The Value Surprise Model attempts to pick out shares whose earnings are most likely to surprise the market, before the market cottons onto the fact. In other words, it is an effort to second-guess the market. However, Markus Barth warns that "analysts will not always be correct in forecasting company earnings". With that caveat in mind, the following FT-SE stocks most likely to spring a positive surprise are United Utilities (542p) and PowerGen (471p). Those most likely to surprise with negative news are British Sky Broadcasting (440p) and Argos (746p).
LAST week, we mentioned Carpetright, the company of carpet king Lord Harris, as a sell. This week comes news of the flotation of Allied Carpets, which is aiming for a pounds 200m price tag when it lists next month. The company has plans in a similar vein to Carpetright: rapid store expansion with pounds 9.3m of the proceeds used to purchase eight freeholds from Asda. Total proceeds are expected to be between pounds 140m and pounds 160m. An intermediaries offer for private investors will close on 17 July.
SHARES in Ashanti Goldfields, the Ghanaian goldminer, have been hit by disappointing interim results. Chief executive Sam Jonah may be keen to distance himself from Lonrho, which originally owned the company, along with the Ghanaian government. But production is set to grow rapidly and costs will come under control. A positive outlook for gold, and the shares, at pounds 131/32, look cheap compared with South African leaders. Buy.
- 1 The truth about 'girl things': Three cheers for Heather Watson's honesty
- 2 Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
- 3 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 4 Tennis fan suing Australian Open organisers for 'failing to shade spectators' during Murray match
- 5 Syrian refugee child beaten by Istanbul Burger King manager for eating customer’s leftover food
Man who held up 'hire me' sign at Waterloo station returns a year later with 'I'm hiring' sign
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Rob Lowe hits out at White House decision not to meet Israeli leader
Iraq invasion 2003: The bloody warnings six wise men gave to Tony Blair as he prepared to launch poorly planned campaign
Winston Churchill: From accusations of anti-Semitism to the blunt refusal that led to the deaths of millions
British Muslim leaders outraged after Eric Pickles says followers of Islam should 'prove their identity'
UK terror fears: My jihadist son returned from Syria mentally scarred – now he is being ignored
Nigel Farage: NHS might have to be replaced by private health insurance
Billy Crystal: 'Stop shoving gay sex scenes in my face'
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
iJobs Money & Business
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...
£16000 - £25000 per annum: Recruitment Genius: This is an exciting opportunity...
£45000 - £47000 per annum + bonus + benefits: Ashdown Group: Java Developer / ...
£35000 - £38000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...