Nick Raynor, investment adviser at The Share Centre, gives his views on the companies announcing results this week (w/c 23 May 2011).

Monday 23 May 2011

British Land (BLND.L) - Full-year results

London property prices are currently maintaining their value and as the capital once again starts to attract companies we are seeing further demand for office space. At the last count British Land had assets under management worth £14.5 bilion, of which 32 per cent consisted of London Office space, and further properties are currently in development. It is difficult to see these figures being poor and we are still encouraging investors to ‘buy' for stability and a decent yield.
BUY.

Tuesday 24 May 2011

Marks & Spencer (MKS.L) - Full-year results

Rising raw material prices have seen retailers suffer this year, but that has not stopped share prices moving in the right direction. The early change in seasons, with a warm spell in April coupled with a colder snap in May, meant competitors that could get their stock correct saw nice gains. Next's recent figures boosted Marks & Spencer, but it was noted that internet sales are becoming more influential. Will the rising inflation and tightening consumer pockets dramatically affect this iconic British brand?
HOLD.

Thursday 26 May 2011

United Utilities (UU.L) - Full-year results

Although valuations look high at present, the yields on offer are attracting investors and water is a product they feel comfortable with and can relate to. The takeover and merger speculation within the sector has also been attractive and investors may want to look at this sector in times of uncertainty.
HOLD.

Burberry (BRBY.L) - Preliminary results

It will be interesting to see if this release mentions the impact Burberry's exposure to Japanese markets has had on trading figures. Current valuations look high at present and we feel there is an element of takeover speculation within the price. Coupled with the rising cost of raw materials it looks like margins will be stretched. However, positive figures may mean we review our recommendation.
SELL.

Antofagasta (ANTO.L) - First quarter results

The mining sector could go either way at the moment with the flotation of Glencore attracting a lot of attention and other mining companies suffering. This could be because investors are selling other stocks to enable them to buy Glencore, or because many believe the reports in the press that mining is ready to pop. Copper is Antofagasta's main revenue stream and has been suffering lately, so investors may be calling this right by moving on. We hope this update will shed further light on the sector's current situation.
HOLD.

Man Group (EMG.L) - Full-year preliminary results

The investors' reaction to the recent launch of Man Group's new fund in Japan showed the appetite for its products is still there, as $1.5bn was raised. The weakness in the dollar has apparently seen sales at hedge funds rise as investors look to buy into these opportunities. The recent sell off in the commodity markets means we could see some weakness in the figures, but we hope it will not have too much of a detrimental effect on the company's results.
BUY.

Friday 27 May 2011

Severn Trent (SVT.L) - Full-year preliminary results

Utilities are currently on a tremendous run as investors seem to follow what we would call a flight to quality and are buying into what they know and what is paying a good dividend. The banks are offering little at the moment whereas utilities are offering the potential of a reasonable amount of growth and a yield of approximately, 4 per cent - a level that is keeping up with inflation. For those entering the sector the price does look to be on the high side, but the momentum could continue and merger and takeover speculation will help with that.
HOLD.