Wednesday, January 15

7 Share Tips Today from the Pros

Share Tips today from the Motley Fool

I just received an email from the Motley Fool giving four share tips for unloved shares that may be about to recover, which is always interesting to hear about, so I thought I'd share them with my readers! So here are 4 stocks to watch from the Motley Fool plus 2 others that have been mentioned elsewhere.

Mark Rogers says :
In 2013, he significantly increased his holding in a beaten-up high-street retailer i.e. Greggs (GRG) – the UK's biggest bakery chain. It published a modest trading statement recently which sent the shares 10% higher in one day and overall the shares are up 27% from their 2013 lows. He thinks the turnaround story is just getting started.

GRG - 2 year Chart - clear long-term resistance around 560p if it gets through there things could get interesting - but it could also be interesting if it pulls back to support around 460p - which I personally would find more tempting.

In the UK Mike Ashley of Sports Direct is a controversial figure but a 'retail genius' and he has just bought a near 5% stake in Debenhams (DEB), which, after its poor Christmas trading is very unloved (by everyone except Mike Ashley and the Motley Fool)

"Mr Ashley is a ruthless and effective retail genius. I wouldn’t bet against his judgment!"
NB : There are rumours (Daily Mail 15.1.2014)) that he has already sold some or all of his 5% stake!
Update : Mike Ashley has definitely sold all his stake in Debenhams (apparently making a £5 million profit) Mike Ashley but has entered a 'put option' which could see his stake in Debenhams rise to 6.6%.
The 'put option' agreement to buy a bigger stake would become active if Debenhams' share price falls to a specified (but unknown to the general public) level.
So in a nutshell Mike Ashley seems to be expecting and wanting the share price to fall further at which point he will have the option of buying back in.
Watch this space.

DEB - 10 year chart

DEB - 6 month chart - could pull back to retest bottom or could just forge ahead the 20 day M.A. could also soon cross over the 50 day M.A. and the more cautious may be inclined to wait untilit gets back above the 200 day M.A. (the black line)

However, Mark Rogers' two favourite retail ideas are William Morrison Supermarkets (MRW) and Tesco (TSCO). "Superb defensive businesses, yielding 5% on average between them – and the market hates them both in 2014!"

MRW - 7 year chart showing support at around 220p and resistance around 300p

MRW 1 year chart - still below 20, 50 and 200 m.a. averages - so still fairly risky IMHO

TSCO 1 year chart - looks like a double-bottom may be in

but the 5 year chart shows it might be worth waiting for 300p

Three other shares you might want to take a look at as they have been recommended by various professional investors (not me - I'm purely amateur and unqualified!) are Quadrise Fuels (QFI) (new fuels for marine transport) and Rio Tinto (miner)(RIO) and Burberry (BRBY) (luxury goods) they just issued a good trading statement and got a good mention by Jim Cramer on CNBC - "very very impressive" is what he said and pointed out that digital sales will be very big for them in China.

QFI has lot of potential but is also pretty volatile _ I personally will be waiting till it pulls back a bit after its recent jump

QFI 7 year chart

QFI - 6 month chart - is it heading up through 50p or back down to 25p first?

RIO - 1 year chart - seems much less volatile and more of a long-term investment

RIO - 10 year chart

BRBY - 6 month chart looks interesting - but a little bit cheaper would be nice as it has had a sharp jump recently

BRBY - 10 year chart - shows clear resistance around 1600p