Momentum Stocks and Long term picks

[SanMiguel]

Cable and Wireless worldwide (53.5p) is looking good at the moment with an 8.7% yield and very cheap share price for a long term hold.

POLO resources has had lots of director buying between the 5p and 6p level. I have held this for a while and even got a special dividend of 3p a while only for the price to return to where I bought it.

Possible momentum share picks but high risk at the moment are:
Raven Russia (RUSW) and
ABDN. ASN INC WT (AAIW)

 

[SanMiguel]

Momentum stock, Price to book is a little high at a ratio of 2, PE is also high so whilst not going cheap, investors have been bidding it up recently.

HIGHLIGHTS

· Revenue from continuing operations of £33.7 million (2009: £29.1 million) representing 16% growth overall with revenue growth of 44% from the Microgen Aptitude Solutions Division.

· Adjusted operating profit from continuing operations increased by 36% to £8.1 million (2009: £5.9 million)*. All internal research and development costs have been expensed as incurred with no capitalisation of development costs.

· Adjusted diluted earnings per share increased by 36% to 6.8 pence (2009: 5.0 pence)*.

· £11.3 million (2009: £9.8 million) of cash generated from operations with year end cash of £25.4 million (2009: £24.2 million) after returning a total of £8.2 million to shareholders during 2010 via dividends and the tender offer completed in September.

· Proposed final dividend of 2.1 pence per share (2009: 1.5 pence) increasing the full year dividend by 30% to 3.0 pence (2009: 2.3 pence).

STATUTORY RESULTS

· Profit for the year attributable to equity shareholders of £6.5 million (2009: £8.5 million with 2009 including exceptional gain of £3.3 million).

· Diluted earnings per share of 7.5 pence (2009: 9.6 pence).

 

[SanMiguel]

Cropper CRPR:

 

[SanMiguel]

+25% on Microgen taken.

Picks for this week including those listed above:

Possible shorts: Blacks Leisure
Possible speculative buys: WYG at 35p, THB Group, Messaging