The Share Centre’s 2015 stock picks
Sheridan Admans, investment research manager at The Share Centre, selects six stocks that should prosper in 2015.
James Fisher
“James Fisher provides a range of marine specialist services which can be integrated into contract packages for oil rigs, wind farms, transporting oil, wharf operations and marine equipment, creating an expertise and limiting competition. It is an investment idea for growth investors, looking for a company that provides niche services around the globe.
“The group has benefited from contract wins with oil companies not only in the North Sea region, but also Africa, Asia and South America. Furthermore, the decline in the oil price is not expected to impact trading at the group’s offshore oil division, as the majority of work is linked to maintenance and production, rather than exploration.
“Directors recently bought shares and an improving cash flow could have the potential to boost dividend growth. We are keen to highlight the long term attractions of the company and recommend them as a ‘buy’ for investors in 2015.”
Taylor Wimpey
“With the housing fundamentals looking good and an improving UK economy, 2015 could be a good year for construction company, Taylor Wimpey. A number of house builders look good value on a number of metrics at present and we recommend the group for medium risk investors looking for growth.
“The group has been investing in the land market since 2009 and now believes it has
optimised its land bank. With the Help to Buy scheme extended to 2020, the low price of oil and the potential for wage growth, the group looks set to benefit.
“Results reported in November saw Taylor Wimpey upgrade its guidance on operating margin growth expectations for 2014 by 4%, as it sees the UK housing market growing steadily and sustainably. The company continues to focus on delivering a strategy which it looks set to achieve and this year’s performance has enabled it to add a further £50m on top of the £200m it expects to return to shareholders in July 2015.”
Telecom Plus
“Utility provider Telecom Plus reported consistent positive results in 2014, as well as a 25% rise in adjusted profit and a 15% increase in new customers. Most importantly the proportion of customers taking the entire package of services doubled, which in turn improves the visibility and quality of earnings.
“The group provide an alternative to the usual well known utility suppliers for gas, electricity, telephone and broadband services. As a possible beneficiary of the upcoming general election, this is one of the few companies in the sector that could experience significant earnings growth along with market share and customer numbers.
“Telecom Plus is a stock for medium risk investors seeking a balanced investment. The group's past growth record and strong return on capital profile has not gone unnoticed and resulted in a premium rating relative to the sector.”
Breedon Aggregates
“As a provider of materials to the construction and building industry, Breedon Aggregates has seen margins improve, helped by lower costs, stable pricing and acquisitions. The outlook for construction, especially in the housing market, is looking more positive and the company continue to benefit.
“The company has positioned itself to benefit from any pick-up in the economy and demand for its products, leading to a number of acquisitions. These acquisitions should not only help expand Breedon’s geographical presence in the UK, but also make a significant and growing financial contribution to the company. As management remain upbeat regarding its future, we recommend Breedon Aggregates for high risk, long term investors in 2015.”
GlaxoSmithKline
“Pharmaceutical giant, GlaxoSmithKline’s solid income and good long term research and development prospects make it a good recommendation for 2015. It is a core holding for many portfolios due to the defensive nature of the sector and the stock, and the competitive yields paid to investors.
“One of the key attractions of the group over other large pharmaceuticals is the promising pipeline of drugs coming through, with the last two years having a very good level of approvals and this trend expected to continue into next year.
“We recommend GlaxoSmithKline based on the longer term prospects from its product pipeline, along with the stability and dividend income the stock provides. The hoped for future improvement should be helped by new products, diversification and increasing exposure to emerging markets.”
Anpario
“Anpario, a provider of natural feed additives, is a small UK company trying to build a name for itself in a competitive international market. Whilst this may ward off some investors, the groupalready has a respectable geographical spread helping offset regional, financial and geopolitical concerns.
“The ever growing global population and improving living standards in developing countries should only increase demand for meat and fish. Improvements have been made to production plants, a pipeline of new products is set to be launched in the future and management are pleased with the growth in Asia and the Americas.
“Given the niche market Anpario operates in we recommend the stock as one of our high risk picks for the longer term.”