Sunday share tips: Burberry, TalkTalk, Merlin

18th May 2014 14:24

It may be best to hold off buying Burberry after the departure of former boss Angela Ahrendts, the Sunday Times's Danny Fortson wrote in his Inside the City column. New Chief Executive Christopher Bailey holds his first annual results on May 21st. His biggest project is in Japan where he plans take the brand upmarket after reclaiming Burberry's rights from local licence holders. His plans for flagship stores will require expensive property deals and the re-launch will cost money on marketing. Fortson advised him to lower expectations on Japan at the outset. The market has overlooked TalkTalk's potential for growth on top of the attractiveness of its dividend, the Sunday Telegraph's Questor column said. The shares have been weak so far this year because investment in acquiring new customers has hit profits. But once those customers are lured by free set boxes they are likely to stay and generate reliable cash flow. Investors have to trust management's assurances to buy into the shares but as a long-term investment they look cheap and people should invest for income and gains.Current investors in Merlin Entertainment should hold on to their shares and potential new investors may want to consider buying on weakness, the Mail on Sunday's Midas tipster advised in an update. The owner of Madame Tussauds and Legoland's shares have risen almost 8% since Midas tipped its flotation in November. Merlin should benefit from increased international travel and more people from emerging markets who want to visit its attractions. 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.SF