Nick Raynor, investment adviser at The Share Centre, gives his thoughts on companies announcing results this wek (w/c 9 May 2011).

Monday 9 May 2011

HSBC (HSBA.L) - First quarter results

This is the last of the large banks to report and by all expectations it should be the most interesting. The bank has talked about restructuring some of its American businesses and moving some of its offices out of London. Also, the rising interest rates in China may have a negative affect on business. However, this is still one of the better funded banks and it is paying a reasonable dividend.
HOLD.

Centrica (CNA.L) - Interim management statement

Centrica is one of several companies affected by the Government's new North Sea tax, but it has plenty of assets elsewhere. Its operations in Morcambe Bay were recently shut down and the company now has to assess if it is worth re-starting them. This update may not be exciting but should show good signs of stability. Centrica is one of our preferred plays in the utility sector.
BUY.

Tuesday 10 May 2011

BG Group (BG.L) - First quarter results

BG Group has had a strong start to the year with additional finds made in its Brazilian operations. The company is also set to sign a deal to export LNG to Tokyo at a time when Japan is looking for an alternative use for nuclear energy after recent events in the region. There are further updates to come from its Brazil and Tanzania operations. The share price is close to an all-time high and we believe there is much more to come.
BUY.

Tui Travel (TUI.L) - Interim results

Problems in the Middle East and North Africa have definitely had an effect on current operations. It will be interesting to see if consumers have chosen alternative holiday destinations for this summer. There are still takeover talks from its German owner which have probably helped to keep the share price at its current highs. However, nothing is certain and we would advise investors already holding the company to be cautious.
HOLD.

G4S (GFS.L) - Interim management statement

G4S has made some small acquisitions this year and is continuing to add to its employee list. It is interesting to note that G4S is the largest employer on the FTSE 100 with over 625,000 staff operating worldwide. The emerging markets are a key area for G4S at the moment and it will be interesting to see the developments the company has made in these regions.
BUY.

Imperial Tobacco Group (IMT.L) - Interim results

This is far from our preferred player within the tobacco sector. British American Tobacco's (BATS.L) figures released last week suggest that mature markets are struggling. Again, emerging markets are key here and British American Tobacco has the edge on Imperial Tobacco Group in these areas. We expect weaker figures to be released but the question is how weak?
SELL.

Also reporting:
Intercontinental Hotels (IHG.L) - First quarter results. BUY.

Wednesday 11 May 2011

Sainsburys (SBRY.L) - Preliminary results

On 27 April sources noted that Sainsburys' market share had been falling while Waitrose, Co-op, Aldi and Lidl were all gaining ground. Sainsburys is trying to introduce new lines and emphasise its new clothing range, however we feel more has to be done to improve the fortunes of the supermarket. Takeover speculation continues to circle the shares but there haven't been any reports recently. We feel there are more exciting plays in the market than Sainsburys.
HOLD.

ITV (ITV.L) - Interim management statement

ITV has not been off to the best start since regaining its position within the FSTE 100, although the price does look to be consolidating at current levels. Legal actions with STV have been concluded and ceased, and the company's debt rating has been raised. Several brokers are now a little more positive after the recent dip and going forward we are confident ITV will perform - now may be a good time to invest.
BUY.

Wood Group (WG.L) - Interim management statement

It has been a terrific year to date for Wood Group. The share price is close to recent highs as the oil market continues to push north and support service companies are finding favour. Shareholders are being rewarded with a strong increase in dividends and a one-off payment after the sale of its support service operations to General Electric. Wood Group is a ‘hold' for now, but investors should be cautious as the share price is starting to look a little high.
HOLD.

Thursday 12 May 2011

Tullow Oil (TLW.L) - Interim management statement

We hope that Tullow Oil has been able to sort out its differences with the Ugandan Government. Recently the company paid $469 million in tax to the Government and it is trying to regain $313 million from Heritage, a previous partner in the region. We are unsure how successful this will be. There are still further updates to come from Ghana and Uganda and on the whole we are very happy with Tullow Oil as an investment opportunity.
BUY.

Also reporting:
Old Mutual (OML.L) - First quarter trading statement. SELL.
RSA (RSA.L) - First quarter results. SELL.
3i (III.L) - Full-year results. HOLD.

Friday 13 May 2011

Petrofac (PFC.L) - Interim management statement

Petrofac's fortunes have not been as good as its competitors so far this year. However, this is still one of our preferred plays within the sector as contracts are flowing in and previously released figures have been interesting. This is still a ‘buy' for us and we hope that this update will send the share price back in the right direction.
BUY.

Also reporting:
Intertek (ITRK.L) - Interim management statement. HOLD.
BT Group (BT.L) - Full-year results. HOLD