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Sunday share tips: Tesco, Next, Ideagen

Mon, 17th Mar 2014 07:01

Sell shares of Tesco, the Sunday Telegraph's Questor column advised. Britain's biggest retailer's market share is large at 28.7% but it is falling. Tesco has not yet cut prices in its attempts to revive its fortunes. WM Morrison has promised to cut prices and Tesco could follow but, along with planned store refurbishments, price cuts would reduce earnings cover and increase questions about Tesco's dividend. Tesco shares have fallen 15% since Questor said to sell them in early October. With no change in the basic questions facing Tesco, the advice stands.Don't expect big returns if you invest in Next shares, Danny Fortson argued in the Sunday Times. In his Inside the City column, Fortson said Next's market value of £10bn, boosted by share buybacks, looked "a bit toppy". Next succeeds while rivals such as Debenhams flounder because it has good products and services, particularly online. It is also highly profitable with margins of almost 19%. Opening bigger stores gives more room for newer lines such as home and garden. This is all good stuff but the shares are for those "happy with a more modest increase in underlying value".Buy shares of Aim-listed Ideagen and watch them grow, the Mail on Sunday's Midas column said. Hospitals and GP surgeries need to go digital, and individual health trusts are buying their own IT instead of the Government attempting to centralise systems. Ideagen's products let trusts and GPs get to their patients' records easily. The company is expected to unveil two new contracts soon. In the year to April 2013 revenue was £6.5m and profit was £1.9m. Chief Executive David Hornsby aims to supply half England's 200 NHS trusts, creating turnover of up to £50m. Supporters of Ideagen think the shares will triple to £1 over the next few years.Shareholders should stick with shares of small-cap van hire group Northgate, Questor said in the Sunday Telegraph. Since Questor tipped the shares on December 4th they have gained 24% and last week's trading statement showed the business doing well. Northgate's fortunes are strongly linked to the UK and Spanish economies. After a restructuring, the company is targeting the booming London market and the UK van fleet is up 9% on a year ago. Spanish trading has been tough but vehicle falls have stabilised. The shares' forecast price-earnings ratio of 14.9 is about right.Steer well clear of PV Crystalox Solar, Danny Fortson warned in the Sunday Times. Things have got worse since the solar panel maker appeared in Fortson's Inside the City column 18 months ago. PV's problem was a flood of cheapo panels from China that forced other European solar companies to go bust. The European Union has stepped in to deter Chinese dumping of cheap panels but governments are slashing solar subsidies anyway. Fortson questions how long the company can survive. There is an opportunity to profit from the difference between PV's market value and its wind-up value but the company has not communicated clearly enough.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.SF
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19 Aug 2009 08:20

London open: Ex-divs weigh

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19 Aug 2009 07:57

PV Crystalox profit halves

Silicon wafers supplier PV Crystalox Solar is confident of a "robust" performance in the second half despite reporting a 57% slump in earnings for the first six months of 2009. Earnings before interest and tax for the half year ended 30 June fell to €21.5m from €50.5m a year earlier on revenue down

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14 Jul 2009 17:09

London close: Stocks pull out of tailspin

Indecision on Wall Street prompted a spell of profit taking in the UK in the middle of the afternoon session which threatened to wipe out the morning's gains, but London's blue-chips rallied at the death to keep the Footsie in the blue. Mining stocks were the best performers with silver miner Fresn

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14 Jul 2009 14:10

London afternoon: Footsie climbs despite weak retailers

London's leading shares continue to edge higher, with sentiment given a boost in the afternoon by expectations of a moderately firm start on Wall Street and a strong set of second quarter results from US bank Goldman Sachs, which announced record revenues. Mobile phone giant Vodafone, the third lar

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14 Jul 2009 12:11

London midday: Early gains are consolidated

The Footsie is trading sideways, holding on to gains after a bright start. Inflation data was much as expected, with the inflation rate falling below the Bank of England's 2% target for the first time since September 2007 last month. The Office for National Statistics (ONS) revealed a drop in consu

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15 May 2009 16:29

London close: Footsie ends on low note

London closed lower after a lacklustre afternoon session with losses on properties and travel companies outweighing gains on miners. Shocking figures from property giant Land Securities on Wednesday still cast a shadow over the real estate investment trusts (REITs). LandSecs leads the sector lowe

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15 May 2009 14:10

London afternoon: Travel companies trip Footsie

London continues its gentle downward drift, with losses on properties and travel companies outweighing gains on miners. The market seems unlikely to get any sort of lift from Wall Street which is expected to open moderately weaker. Shocking figures from property giant Land Securities on Wednesday

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15 May 2009 13:41

FTSE 250 movers: Renishaw in focus

Microscope maker Renishaw says cost cutting will offset the impact of tough market conditions and claims an operating loss for the second half is expected to be "somewhat less" than the £10m flagged in March. The company, which supplies microscopes, scanning probes and other devices, has already a

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15 May 2009 12:15

London midday: Rally stalls

Weak properties and oils have pitched the Footsie into the red, despite the continued strength of banks and miners. Shocking figures from property giant Land Securities on Wednesday are still casting a shadow over the real estate investment trusts (REITs). LandSecs leads the sector lower but Hammer

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15 May 2009 08:48

London open: Banks give Footsie a boost

Banks have helped Footsie make a bright start with reports that Barclays is considering new offers for its iShares arm boosting the whole sector. Barclays may backtrack on a deal to sell its iShares unit to CVC, the private equity group, and instead offload its entire asset management division for

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15 May 2009 07:08

PV Crystalox revenues on the slide

PV Crystalox Solar, which produces silicon wafers for use in solar power generation systems, expects first half revenues to take a 10% dive from last year's half-yearly revenues. The company has seen a further decline in demand for its products since its preliminary results announcement at the end

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