Six frightful stock tips to resurrect your portfolio
With Halloween upon us, Graham Spooner, investment research analyst, digs up some thrilling stocks to get your fangs into.
Isle of Man based Manx Telecom is a broadband and telecommunications provider providing services to around 4,000 businesses and 37,000 homes on the island. We like the company because it is a niche operator on the island which has resulted in a steady income stream. Its steady core business is allowing the group to explore investing into other areas and expand from its island base. Its award-winning 4G network for mobile users is aiding this move. The prospective yield is in the region of 6.8% which looks devilishly good for a company of this size.
Online clothing retailer Boohoo was founded in 2006 in Manchester and offers value-oriented fashion and accessories with its target audience being mainly 16-30 year old women, although they have recently begun to offer men’s fashion as well. Its portfolio also comprises of brands PrettyLittleThing and NastyGal and together they sell clothing to customers in over 100 countries. Spirits have been high as they have grown sales and profits steadily over the past four years and investors should appreciate that it is investing in enlarging and automating its warehouse in Burnley so that it can cope with sales of £3bn. The shares have been a treat since the company floated in 2014, outperforming the market over the years and investors should note that this has put it on a high rating which in turn could lead to increased volatility.
Breedon is one of our favoured AIM stocks and as the UK’s largest independent aggregates business, it provides various materials to the construction and building industry. There are no scares to be seen with its solid performance over the last couple of years, being fuelled mostly by the increased demand for housing. We have long been a fan of the group and note that although housing is a notoriously cyclical market, demand for new housing looks set to remain. This is an AIM listed company that is geared to a recovery in infrastructure spend and is a buy for medium to high risk investors.
Our next tip is a small company, which has developed a niche for itself over a number of years, on a global scale. AB Dynamics is its name and designing, manufacturing and supplying to the car industry is its game with its services including driving simulation, robotics and crash testing. The group is on our ‘buy’ list because the constant development of cars, especially in the field of Advanced Driver Assistance Systems, provides the spooktacular opportunity for more orders to be produced at the group’s new facility. Furthermore, an increased desire from governments and drivers wanting safer and more comfortable cars will only boost it. This is a company geared to growth and, as a result of the recent strength in the share price; we suggest new investors' drip feed into the shares for the time being.
Anpario is trying to build a name for itself as an international producer of natural speciality feed additives, primarily used for pigs, poultry and fish, aimed at improving animal health. The growing pressure on feeding the world's population is unlikely to recede and improving living standards in developing countries means demand for meat and fish is likely to increase. Adding to the attractiveness of the company is the fact that there is limited choice for investors in the UK market to gain exposure to agriculture of this kind and further tightening of regulations could favour more natural feed additives. Anpario’s management team is aiming to help raise the groups profile and they’ve recruited a number of staff to develop new products and provide technical support for customers. This company could be a treat if you are a higher risk, longer-term investor looking for an AIM company geared to the agriculture sector.
This is a company that produces a wide range of cakes, breads and other food products for a diverse array of customers including supermarkets, cafes, wholesalers and restaurants. Indeed, it owns well-known brands including Memory Lane Cakes and holds licences for high profile brands such as Thorntons, Disney and Mary Berry. This varied exposure reduces the overall risk level and gives it an opportunity for potential growth in a number of areas both in the UK and Europe. Acquisitions increased the scale of the group, growing access to important new customers and providing the group with significant earnings potential. Debt levels have fallen substantially, enabling the company to pay dividends and invest in the business to creep its growth up. We like Finsbury Food primarily because of its diverse customer base, good relative value and future potential so it could be the cherry on the cake for your ISA.
All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to www.share.com. To understand how our Investment research team arrive at their views please read our Investment Research Policy.