Thursday April 24, 06:06 AM
Thursday tips round-up: Arriva, GlaxoSmithKline, Thorntons
LONDON (ShareCast) - Arriva argues that because it generates two-thirds of its revenues from government revenues, rather than from ticket sales, it is a defensive stock, which investors should pile into. Despite the hedging policy, a big
rise in the cost of fuel would eat into growth: the company concedes it has already seen "substantial" hikes in fuel costs this year. That said, most analysts see the group as a buy; there is little reason why investors disagree. Buy, says the Independent.Is GlaxoSmithKline (LSE: GSK.L - news) finally rebuilding shareholder confidence? After years as the company shareholders loved to hate, the stock was one of the picks of this year from a range of market commentators. The Telegraph believes the company is moving into the right direction and advises shareholders to hold on. The problem for Thorntons (LSE: THT.L - news) is that it will get dragged down by the problems facing the retail sector. The group is at pains to point out that each of their businesses is performing and that it is being innovative with their products and shops. Analysts agree that forgiving the slip over Easter production, the group is doing all it can. Sadly, the investment case falls at the first hurdle. If investors do not need to be exposed to retail, there is no real argument for buying Thorntons. Sell, writes the Independent. Gem Diamonds (LSE: GEMD.L - news) is now looking to expand its operations to benefit from further price rises and there is also the prospect of exploration projects producing results - even if they are in difficult countries to operate such as the Democratic Republic of Congo. Still, given the positive outlook, the recent sell-off seems odd. Diamonds are still forever. Buy, says the Telegraph. To buyers looking at RPS simply as an alternative to other sectors such as financial or retail stocks, the company looks pretty attractive. It (Frankfurt: A0MLX5 - news) is difficult to see RPS having anything other than a good 12 months. Buy, writes the Independent.
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