BUSINESS

SUNDAY NEWSPAPER SHARE TIPS: Anglo Asian Mining, Gordon Dadds, Big Yellow and Dechra Pharma


SUNDAY NEWSPAPER SHARE TIPS: Anglo Asian Mining, Gordon Dadds, Big Yellow and Dechra Pharma

This Is Money

Every weekend, we round-up the newspaper share tips. This week, the Financial Mail on Sunday looks at its best performing tip of 2018, Anglo Asian Mining and updates on one of three to watch this year, law firm Gordon Dadds.

Meanwhile, the Sunday Times looks at pet medicine and vaccine firm Dechra Pharma and the Sunday Telegraphs runs the rule over self-storage giant Big Yellow.

MAIL ON SUNDAY

Midas’s best-performing stock of 2018 is Anglo Asian Mining, a gold and copper miner based in Azerbaijan. Recommended at 45p in September, the shares have shot up to 90p – so they have doubled in just three months.

Anglo Asian has an eventful past. A darling of the stock market, when it joined Aim at 77p in 2005, the shares spent a decade in the investment wilderness, tumbling to 4p by 2015.

The business has been through a transformation since then.

>> Read the full Midas column here

Back in January, our three top picks for 2018 were law firm Gordon Dadds, life sciences group Syncona and specialist engineer Porvair.

Dadds has risen 27 per cent to £1.82p, as revenues and profits have grown significantly.

But the shares have been suspended since September, when chief executive Adrian Biles revealed he was pursuing a merger with Ince International, a larger rival.

>> Read the full Midas update column here

SUNDAY TIMES

Across Thailand, the number of cats and dogs kept as pets is surging, thanks to a combination of an ageing population and increasing urbanisation.

Looking at them has ballooned into an industry worth £2.2billion a year – and it set to surge by 10 to 15 per cent annually.

Expansion into Asia is expected to be a key source of growth for Dechra Pharmaceuticals, which makes medicines and vaccines especially for pets.

It is trading at a punchy 58 times forward earnings. While Dechra is a strong, sustainable business, it does appear its period of unbroken growth could be on pause. Hold.

SUNDAY TELEGRAPH

If 2019 is poised to be the year of the hoarder, there should be some read-across to the world of self-storage. 

Big Yellow, the best-known name when it comes to finding somewhere to sling belongings that people can’t bear to throw out, posted strong half-year figures in November.

The company boasts of delivering total shareholder returns with dividends reinvested of 15 per cent per annum since floatation in 2000.

Shares in Big Yellow touched record highs not long ago but have given back most of their 2018 gains as the year draws to a close. 

They still trade at a premium to net asset value at 19 times next year’s forecast earnings they are worth stashing somewhere safe. 

Rents are up, occupancy is 85 per cent and profits could grow by 10 per cent a year. Buy.

 

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