Sunday share tips: BHP Billiton, Lloyds, Greencoat

3rd Mar 2013 14:39

New management sometimes tries to leave its mark when it enters a company and so it will be with Andrew Mackenzie at miner BHP Billiton. However, as opposed to Marius Klopper, whom he will substitute, he is unlikely to unveil a world-beating takeover a few weeks into the job, points out The Times´s Danny Fortson. Rather, last week he announced to investors and employees that he will be 'battening down the hatches' ahead of what is likely to be a rough voyage. The reason for that is the need to react to the sharp slowing in Chinese demand for metals. Hence, Fortson believes that Mackenzie may opt to write-down the value of the nickel and aluminium division and sell it. Similarly, big new projects such as the 10bn dollar Jansen potash mine in Canada are likely to be delayed. This might all be bit boring the columnist muses, but that may be best for investors. Buy, Fortson says. All UK banks are a great long-term investment, the Telegraph´s Questor team believes. They are not going to go bust and the current crisis will eventually run its course. However, the shares of Lloyd´s, which posted results last week, had doubled in the last six months and its results were not exceptional. As well, the risk of further unexpected events, such as the LIBOR scandal cannot be dismissed. Likewise, a quick return to dividend payments is not assured. Yet the largest threat looming in the shadows is the 'overhang' of shares as a result of the government´s stake in the lender. This 'overhang' will have to be cleared before the shares really start to perform and the stock price may yet be roiled by events until then. For that reason Questor says Hold. A 6% dividend linked to inflation is nothing to be scoffed at in the current economic climate. In fact, it is a much more handsome return than one can get from a high street savings account. It is also exactly what wind farm operator Greencoat UK Wind, whose shares will float on the London Stock Exchange this month, is offering. Critically, its portfolio of assets is already built and 'up and running.' As well, the government´s Green Investment Bank is one of its cornerstone investors. Hence, there should not be a risk of the government retroactively modifying the laws which govern the incentives which it receives from the public purse (due to the legal uncertainty that might generate for investors in the UK in general). Or so one would hope ... Fortson writes.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.AB