Nick Raynor, investment adviser at The Share Centre, gives his views on the companies announcing results this week (w/c 7 March 2011).

Monday 7 March 2011

Inmarsat (ISAT.L) - Preliminary results

After the sale of US fund Harbingers stake in Inmarsat the cloud of uncertainty has been lifted. A further 14 per cent of the company was sold at 670p in mid-February and analysts now believe the company can look forward instead of worrying about potential takeovers. Already this year Inmarsat has won a contract worth $115 million a year and there could be more to come when these results are released. Inmarsat is a ‘hold' for now but we could consider a change.
HOLD.

Tuesday 8 March 2011

Weir Group (WEIR.L) - Full-year preliminary results

Weir Group has some exposure to Government spending and so could be hit by recent cuts by the Ministry of Defence. However, the company has enough diversity to be able to cope with this and has now established itself as a FTSE 100 constituent. Weir Group may suffer slightly from events in North Africa, however it should not be detrimental within these results.
HOLD.

Antofagasta (ANTO.L) - Full-year preliminary results

Mining companies have been doing very well recently and Antofagasta should be no exception. Copper prices are close to all time highs and if the company aren't pushing profits higher now, they never will be. In a recent update the company announced that expectations would be missed, so if results read even worse, we could see some volatility in early trading. A good play for copper exposure, but only a ‘hold' for investors due to its unreliability.
HOLD

Wednesday 9 March 2011

Tullow Oil (TLW.L) - Full-year results

Negotiations with the company, CNOOC, appear to have faltered and some concerns have arisen over the political status of both Ghana and Uganda. Drilling will commence early March, how long this will take is unknown as drilling has not taken place in the area before and the geological formations are untested. We feel there is still plenty of potential, hence our continued ‘buy' recommendation to investors.
BUY.

Prudential (PRU.L) - Full year results

Figures from Prudential are expected to be good and will hopefully justify the company's decision not to complete the purchase of the Asian business, AIG last year. Investors will want to see further improvements of the dividend and signs that the insurer is on track to regain the levels prior to the financial sector's fall from grace.
BUY.

Thursday 10 March 2011

Aggreko (AGK.L) - Full-year preliminary results

Aggreko is the official supplier of temporary power supplies for the Olympics. This should have come as no surprise for investors and analysts alike as Aggreko has been the supplier to most of the recent large sporting and non-sporting events around the globe. The deal may only be worth £37 million, but it will give the company global exposure and increase the likelihood of further contracts. Several brokers are very positive on Aggreko, but for us it looks fairly valued.
HOLD.

Standard Life (SL.L) - Full-year preliminary results

Results are unlikely to provide much cheer unless Standard Life can come up with something exceptional. Many brokers, including ourselves, believe the shares are fairly valued at the moment and are only holders of the stock. The takeover of Focus Solutions is now complete and although it is unlikely to have any effect on the bottom line at the moment, it will be interesting to see how integration of the two businesses is going.
HOLD.

Morrison (Wm) (MRW.L) - Full-year preliminary results

Morrison's has made their first foray into the internet market with the £70 million purchase of Kiddicare. This will be the first step to developing an on-line business. It's too early to see if it will have any impact but we may get some update to how the project is moving on. Recent research has noted Morrison's market share is unchanged during the last 12 weeks - not bad when the likes of Tesco and Asda are losing theirs. It is also hoped that shareholders may see some rewards in the form of higher dividends or a share buy back scheme.
HOLD.