Threadneedle equity fund managers select stock to look out for in 2007

Three Threadneedle UK equity fund managers select a stock to look out for in 2007.

Bill Barker, UK Equity Fund Manager (Threadneedle UK Smaller Companies Fund) chooses Detica: “This is a small technology consultant specialising in national security. It has recently opened an office in the US, which provides a huge growth market for the company. In this country, the group is breaking into a range of new areas where security is an issue. For example, the company recently announced it is working with the UK’s Financial Services Authority to detect insider trading. Expanding in these new markets should enable earnings to grow in 2007 and beyond.”

Mark Westwood, UK Equity Fund Manager (Threadneedle UK Select Fund) chooses Lonmin: “Shares in platinum producer Lonmin have trebled in the past two years but I believe the company continues to offer sound growth prospects. Currently, demand for platinum is outstripping supply, which has resulted in soaring prices. More than 50% of the global demand for platinum is driven by the need for catalytic converters used in cars and, given the huge growth in car ownership in China, demand is unlikely to abate over the next five years or so. I would expect a leading player like Lonmin to be able to deliver excellent returns to shareholders over this period.”

Simon Haines, UK Equity Fund Manager (Threadneedle UK Mid 250 Fund) chooses Cobham: Cobham, a leading supplier to the aerospace and defence industry, has a strong balance sheet and has demonstrated its commitment to maximising shareholder returns by acquiring companies. Often these purchases are overseas, underlining the company’s desire to expand in fast-growing international markets. These small bolt-on acquisitions, coupled with periodic larger-scale takeovers, should enable the company to continue with its excellent earnings growth record. Additionally, Cobham has developed a range of valuable technologies in growth markets, which could make the company an attractive acquisition target in future.

The mention of any specific shares or bonds should not be taken as a recommendation to deal and anyone considering dealing in these financial instruments should consult a stockbroker or financial adviser.