HBOS and Shell results offer opportunities for investors

The Share Centre's Advice Team looks at today's results from HBOS and Shell and what they mean for investors.

Commenting on the 51% drop in HBOS profits Graham Spooner, Investment Adviser at The Share Centre said: "Whilst profits may have more than halved over the first six months of the year, reports suggest the overhang (left over) of shares from the company's rights issue may have been resolved. It is thought the underwriters have now managed to get rid of the majority of the £3.64bn in unwanted stock, which may help to steady the share price.

"However, it would take a brave man or women to invest in HBOS at the minute. Personally, I would avoid HBOS in the short term. Potential investors may want to look at the banking sector once they are back from their summer holidays. From a long term point of view there are bargains to be had in the sector as we expect the majority of banks to trade their way out of current difficulties."

Commenting on Shell's record profits Nick Raynor, Investment Adviser at The Share Centre said: "The fact that Shell has announced impressive profits of $7.9bn is bound to dominate the headlines. As oil prices remain high (approximately $120 a barrel) this may be bad news for consumers at the pumps, but this is good news for investors.

"Shell remains a good investment for income seekers as it continues to offer strong yields. As well as the profits announced today, Shell has upped its dividend it pays to shareholders by 11%.

"However, Shell has understandably been affected by its reliance on the turbulent Russian and Nigerian oil fields, and because of the unrest, Shell's oil production by the barrel has actually slowed in recent times. Depending on how long this unrest lasts this may impact on future profits and as an investor is worth watching."

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