Buy homewares retailer Dunelm, the Sunday Times's Danny Fortson advised. The company has quietly powered its way through the long period of economic gloom and is about to launch its first national TV advertising campaign. Its October 2nd trading update is likely to feature a sales dip caused by unusually hot weather but investors shouldn't be deterred. With opportunities to expand through stores, catalogues and online, Dunelm's winning streak has some way to go, Fortson wrote in the Inside the City column.
Buy Hyder Consulting for its rapid dividend growth, the Telegraph's Questor column said. The engineering consultant's dividend has more than doubled in the last four years and analysts expect it to rise 10% this year and next. The payout is also comfortably covered by earnings and cash flow. More than two thirds of Hyder's revenue comes from Asia and the Middle East, where there is an infrastructure boom. Set aside a recent currency setback and look to the long term, over which Hyder trades at an unjust discount to WS Atkins.
Fairpoint is a good long-term investment, the Mail on Sunday's Midas column advised. The consumer debt adviser suffered in 2007 from focusing too much on individual voluntary agreements (IVAs) but Chief Executive Chris Moat came in and broadened its services into longer-term debt management plans, energy switching advice and claims management. When interest rates eventually rise, IVAs are expected to rise and in the meantime Fairpoint is cutting costs and boosting market share. It is expected to grow steadily and maintain a generous dividend policy.
Investors have the chance to gain from Thomas Cook's recovery, the Telegraph's Questor said. Softness in late summer bookings sent the holiday company's shares
down 7% in the week starting September 23rd but a slight slowdown is to be expected in one of Britain's hottest summers but overall the season was 95% sold at higher average prices. After cutting costs and strengthening the balance sheet, Chief Executive Harriet Green has more savings up her sleeve and with her revival continuing, Thomas Cook could soon pay a dividend again.
Borders & Southern Petroleum has few options after revealing that its cash reserves had plunged and giving little information on the sale of a gas field near the Falkland Islands, the Sunday Times's Danny Fortson said. With a rapidly eroding balance sheet and a hostile neighbour in the shape of Argentina, it is in a spot. Without the cash to fund a big discovery and with investors wary after handing over £47m last year, it may need to cut activities and seek a bigger partner but that could be a long shot.
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