Wednesday, May 25

Midas and Questor Share Tips

Stock Trading Online - Wednesday Stock Picks

The Times

Homeserve is pursuing targets in the US and Europe.

Iain Dodsworth is said to have sold TweetDeck, to Twitter for $40 million.

Tempus share tips
Hold Great Portland Estates
Hold CandW Worldwide
Tullow Oil is heading for interesting times.

TLW - 10-year chart with 200 day moving average

check out here for info. on stock charts and moving averages

Financial Times
US Treasury sells $5.8 bn stake in AIG.


Marks and Spencer: - international expansion is a top priority, M&S needs more money to spend, so maybe it should consider cutting the dividend.

UK banks: - rating agency’s move to put 14 of the UK's 18 banks under review is not cause for alarm, but downgrades seem inevitable which means funding costs will rise.

The Independent

Investment Share Tips

Buy De La Rue at 840p
Buy Holidaybreak at 269.5p
Buy Plant Impact at 32.5p

The Guardian

Cable & Wireless putting faith in rising returns from hosting other companies' IT in secure data centres – i.e. 'cloud computing' [the Internet to you and me - Ed.].

The Daily Telegraph

Nestlé rumoured to have paid $1 bn for Prometheus Laboratories, makers of equipment used to diagnose bowel complaints.

Questor share tips

Buy Ryanair at 3.359 euros
Buy Pennon at 663p

Avoid Glencore at 525p (buy Xstrata instead) -
Mr Glasenberg should do rather well out of the listing but the market may not. There are likely to be better opportunities elsewhere in the market with less risk. There are still areas of the business that have not been looked into. One way to profit from the Glencore IPO would be by taking a stake in miner Xstrata, which is now a "sitting duck". Glencore owns almost 35% of Xstrata. Glencore is widely expected to make a full offer for the company – at a premium. It may also sell its stake, but this is considered less likely.

Xstrata 2 year chart with 200 day moving average (XTA used to be 40 UKP at one time)

Glencore's revenues of $145bn only gave net profits of $3.8bn. Xstrata had revenues of just $30.5bn, but net profits of $5.4bn.

But even if there is no acquisition, Xstrata's commodities are impressive. Avoid Glencore.

Daily Mail

If you thought the financial crisis was coming to an end then you need to think again after revelations this week. Credit ratings agency Moody’s has said it may downgrade 14 UK banking lenders.

Market Report

Rumours are that Nasdaq boss Bob Greifeld ready to have another bid for the LSE after dropping out of battle for the New York Stock Exchange.

Midas Share Tips

Buy Chi-Med at 447.5p. China is a big place and the Chinese government is finally taking an interest in the health of its comrades.
Midas says - Chi-Med is loss-making, due to heavy investment, but it should be profitable next year. Long-term the outlook is very healthy. The share price is currently 447.5p and many brokers believe this should increase to at least 550p this year. There should be some encouraging news over the summer. Buy.

. Diploma shares have more than doubled since being tipped by Midas and are now 364.5p. Dividend is progressive and the shares should rise as economic recovery gathers momentum. Investors should hold on. New investors could consider buying on weakness.