Share Dealing
Market preview: Petrofac, Cairn Energy, WPP, Admiral, G4S, Diageo, BHP Billiton, Tullow Oil
23 August 2010
Monday 23 August 2010
Petrofac - Interim results
Petrofac's update in June made good reading and we hope for the same to be true of these interim results. There have been plenty of contract wins recently, including a $400 million (£257 million) contract with the Kuwait government. The only concern for us is the rise in share price, good for investors who hold the stock, but a touch pricey for new investors.
HOLD.
Tuesday 24 August 2010
Cairn Energy - Interim results
Investors will be hoping for more news in relation to the sale of part of its Indian operation, as they have been promised a nice cash return providing that the sale goes through. Investors also eagerly await developments from its Greenland prospects. Successful drilling could look to pile in the pounds, (not without risk), but investors will be pleased with this year performance so far, and there may be more to come.
BUY.
WPP - Interim results
It will be very interesting to see how one of the world's biggest advertising agencies has preformed during the first half of the year. As economies start to show some signs of recovery, has this filtered through to this industry? We expect the World Cup to have provided some boost, and we may get an indication of how the second half of the year is likely to pan out.
HOLD.
Wednesday 25 August 2010
Admiral - Interim results
We have listed Admiral as a sell for some time now, however we could be wrong on this one. The share price is now close to an all-time high, but for us the shares still look too expensive. There is plenty of competition within the sector and at some point this is going to have an affect on the bottom line - we still remain cautious sellers.
SELL.
Tullow Oil - Interim results
Tullow Oil has successfully found oil in Africa continually for some years and more recently it has been successful in Uganda. This update will no doubt contain positive news for investors, but just how much is uncertain. The successful purchase of Heritage oil assets may be mentioned, but for us it's all about the drilling results.
BUY.
BHP Billiton - Preliminary results
BHP Billiton has just offered a staggering $40bn (approximately £26 billion) for Canadian potash producer Potash Corporation of Saskatchewan. However, these results will focus more on how much profit the company has made and how much resource is being gobbled up by China. The company's vast diversity makes it our favourite within the mining sector, however depending on how the takeover of Potash Corporation goes and how they pay for it this, we may review our position.
BUY.
Thursday 26 August 2010
G4S - Interim results
G4S derives a lot of contracts from the Government and there will be concerns as to whether or not G4S will be affected by the cuts in public spending. This is not apparent yet, and these figures will hopefully clarify the situation. We do currently list this one as a ‘buy', but our position will be under review upon release of these results.
BUY.
Diageo - Preliminary results
We hope the World Cup gave Diageo a nice kick towards the end of the financial year. Diageo is only a hold though as competition remains high within the sector, and cheap European imports coupled with tough marketing campaigns from competitors is likely to stifle growth.
HOLD.
Carillion - Interim results
Carillion is a well diversified company - especially from a global position. Contracts won so far this year have been from the US, Middle East and Europe, and there is also exposure to Australia. All of this helps to keep the share price stable and add to the attraction and potential for further growth.
BUY.
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