Nick Raynor, investment adviser at The Share Centre, gives his views on the companies reporting next week (w/c 25 July 2011).

Monday 25 July 2011

Domino's Pizza (DOM.L) - Interim results

Domino's Pizza suffered at the start of the year and this was reflected in the fall in share price. However we have seen some recovery recently and the company's business model has generated a lot of positive press. We are once again seeing the share price on its way up and expect a further boost from this update.
BUY.

Reckitt Benckiser (RB.L) - Interim results

Takeover talk has been the company's saviour so far this year, although there are few companies that could afford to so. However when Unilever and Proctor & Gamble are amongst the rumoured purchasers it could become a serious bid. When it was announced in April that the chief executive was to depart the share price fell and although it was justified at the time it raised awareness of the valuation of the company. It is unlikely there will be any update on takeover talk in this announcement but we hope the trading figures are positive.
HOLD.

Companies also reporting:
National Grid (NG.L) - Interim management statement. HOLD.

Tuesday 26 July 2011

GlaxoSmithKline (GSK.L) - Second quarter results

This update from the UK's biggest pharmaceutical company is, as always, expected to hold few surprises. Investors will be keen to hear of any rise in the dividend and how the current share buy back programme is proceeding. Recently rivals have been having a bad run of luck and GlaxosmithKline is no exception. However, the strong yield and product pipeline has stood the company in good stead.
BUY.

BP (BP.L) - Second quarter results

BP has recently delayed its asset selling programme and, along with its Russian partner TNK, has taken a 45 per cent stake in an oil and gas deposit in Brazil's Solimoes region. The cost could be as much as $1 billion but could offer reserves of up to 542 million barrels of oil equivalent. Investors will be keen to hear what is happening with the dividend and of any increase.
HOLD.

Arm Holdings (ARM.L) - Second quarter results

Apple's recent results showing profits well ahead of expectations gave the technology market a big boost and saw share prices rise. Although many of Apple's devices will contain Arm Holdings' chips these results will need to be good in order to maintain the current momentum.
HOLD.

Companies also reporting:
Imperial Tobacco (IMT.L) - Interim statement. SELL.

Wednesday 27 July 2011

British American Tobacco (BATS.L) - Interim results

British American Tobacco's share price has recently hit all-time highs despite further legislation banning advertising coming in from around the world. Australia has taken a step further and from January 2012 under proposed laws Canberra wants to be the first government in the world to restrict logos, branding, colours and promotional text on tobacco packets. We expect another solid set of figures from British American Tobacco.
HOLD.

ITV (ITV.L) - Interim results

The rumour mill is working overtime and ITV is once again in the middle of it. If there is any truth in the rumours, private equity companies Permira and KKR are the latest suitors with a target price of 110-120p. Although this is a long way off the current share price it is not a ridiculous valuation. We hope these figures will tell us if advertising rates are improving and if any new proposals are in place for highly viewed programmes X-Factor or Britain's Got Talent.
BUY.

Companies also reporting:
Sage (SGE.L) Third quarter results. HOLD.
Autonomy (AU.L) - Second quarter results. SELL.

Thursday 28 July 2011

Shire Pharmaceuticals (SHIRE.L) - Second quarter results

Shire Pharmaceuticals has been one of the outstanding performers on the FTSE 100 this year and we feel it is close to being fairly valued. However, we hope this update will prove us wrong as we have liked the company's huge potential within its drug development division and it should be attractive to bigger drug companies.
HOLD.

Compass Group (CPG.L) - Third quarter results

Compass Group has recently made purchases in Hong Kong and Turkey, amongst others, which has increased its reach without spending vast amounts. The company released positive figures in May and we believe we will see much of the same in this quarterly update. Compass Group keeps providing the goods and we expect this is unlikely to change.
BUY.

Centrica (CNA.L) - Interim results

Centrica recently announced price rises of nearly 20 per cent would be forced upon both gas and electricity users as the cost to the company had risen. Centrica has suffered this year after the proposed tax on North Sea companies, however concessions have since been made and production has started again from some of its rigs. The diversity of the company is its strong point and although it may not be favoured by consumers at the moment it is from an investment point of view.
BUY.

Companies also reporting:
Tate & Lyle (TATE.L) - Interim statement. HOLD.
Invensys (ISYS.L) - First quarter results. HOLD.
AstraZeneca (AZN.L) - Interim results. HOLD.
BAE Systems (BAE.L) - Interim results. SELL.
BT Group (BT.L) - First quarter results. HOLD.
Reed Elsevier (REL) - Interim results. HOLD.
Rolls-Royce Group (RR.L) - Interim results. BUY.

Friday 29 July 2011

BSkyB (BSY.L) - Full-year preliminary results

This is the first set of results issued since the collapse of the takeover bid by News International and nothing but improved figures are expected. While the bid situation has been unfolding figures have been improving - consumer numbers have risen and there has been a higher take up of its broadband package. We upgraded BSkyB to a ‘buy' as soon as the bid failed and we hope these figures will justify that confidence.
BUY.

Companies also reporting:
Pearson Group (PSON.L) - Interim statement. HOLD.
Anglo American (AAL.L) - Interim results. HOLD.