News

A trading statement from security group G4S on 10 November was upbeat. Chief executive Nick Buckles said underlying growth for the first nine months of 2008 was 10.3% and he was very confident about the future.

Analysts share this confidence. They predict profits will rise 28% to £331m this year, with the dividend expected to increase from 4.96p to 6.2p. G4S is well below its 2008 peak of 247p yet it is optimistic about the future and has plenty of support in the City. The stock deserves to go higher. Buy says the Mail on Sunday.

Multi-utility Telecom Plus shares have risen by 14% to 359p since the Mail on Sunday last recommended them. Investors will not lose out by selling half their shares and taking profits, but it is worth holding on to the rest as the stock is yielding 5% and the company has plenty of potential. Hold says the paper.

Contract caterer Compass says its new financial year has started well, with the group continuing to deliver good organic revenue growth. The shares are cheaper than its main listed peer Sodexo, which is trading on a 2009 earnings multiple of 15.5x. Compass shares are trading on a 2009 multiple of 12.7x. With solid earnings visibility, good cash generation and good management, shares in Compass are a buy says the Sunday Telegraph.

Results from Imperial Tobacco earlier this week highlighted the resilience of the tobacco sector in turbulent times. The shares have underperformed because of concerns about debt, but the company's cash-generating ability should ease these worries going forward and the Sunday Telegraph expects the stock to be re-rated. The shares are a buy.

Topps Tiles is an excellent company. It is well managed but even the strongest fish cannot defeat the tide of Britain's slumping housing market. Like-for-like sales have fallen 18.3% in the first seven weeks of the current year. Sell says the Sunday Telegraph.

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