Ed Monk for Thisismoney.co.uk
We round up the Sunday newspaper share tips. Today, property group Palace Capital, Hays, Genel, Green Dragon and BG Group.
Closer look: Which companies are the newspapers tipping?
Mail on Sunday
Midas runs the rule of property group Palace Capital. The company is run by two real estate veterans, Stanley Davis, 75, and Neil Sinclair, 70. The pair have a century of experience between them and are determined to build a substantial commercial property firm, focused on the regions, rather than London.
Palace was formed in 2010 when the pair invested in AIM-quoted Leo Insurance, which was underperforming. They took over the management, changed the name, sold the insurance arm and started to build a property business. From the start, the plan was to buy companies or property portfolios, rather than individual buildings.
Analysts expect profits to rise from £1.4million to £4.6million in the year to April 2015, with the dividend soaring from 4.5p to 12p. The group has issued shares to help fund its recent deals, but these have been set around the prevailing share price and have been eagerly bought by institutions.
Midas verdict: Davis and Sinclair are old-fashioned property men with a keen eye for bargains and a determination to deliver value. Buy.
Readers also get an update on recruitment group Hays. The shares have fallen from 151p in July to 116p today, even after it pleased brokers in August when it delivered annual profits up 12 per cent to £132million, raised the dividend by 5 per cent to 2.63p and held out the promise of special dividends to come.
Midas tipped Hays in August 2010, when the shares were 90p, and suggested holding on to them last November, at 125p. The shares should still reward investors. Hays is one of the world’s biggest whitecollar recruiters, operating in 33 countries.
A trading statement on Thursday is expected to be robust and further out, the UK is forecast to deliver strong results. Midas verdict: At 116p, Hays shares offer good value. Buy.
Read the full Midas column here.
The Sunday Telegraph’s Questor column majors on oil explorer Genel, which is having to cope with instability in its Kurdistan operations.
Staff have only now returned to work after being withdrawn following the establishment of terrorist group IS in Iraq and tension over a new pipline to Ceyhan in Turkey is threatening to dirupt operations further.
Falls in the oil price haven’t helped either and Genel has suffered lower prifts despite revenues 17 per cent higher in the first-half of the year.
Having previously recommended the stock, Questor there is now too much risk here given the fall in the oil price, and tells readers to sell.
China-focused gas producer Green Dragon Gas also gets the once over. Green Dragon Gas drills to release gas trapped in coal seams that used to be vented off during the mining process, Questor tells us.
The future of the company is now more certain after the Chinese government handed back ownership of its gas well.
The shares have risen 65 per cent since Questor’s recommendation in December and, with gains now reflected, readers are told to bank profits and sell.
Inside the City in the Sunday Times looks at BG Group and a critical note from analysts at Credit Suisse this week that questioned whether its huge Australian gas export operation will open on time, and whether estimates for oilfields in Brazil will stack up.
Given the large amounts – £12.5bllion – the BG has spent oon the Queensland project, there is plenty at stake.
Inside the City says that operations are running behind schedule and that any delay could trigger penalty payments. An update from Brazil is due in December that will confirm if BG’s numbers add up.
Added to all this, the BG board is still looking for a replacement for Chris Finlayson who resigned suddenly in April.
Inside the City thinks it’s a sell.
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