Sunday share tips: Halfords, Sports Direct, Real Estate Investors

13th Jul 2014 13:26

Buy shares of Halfords to capitalise on the UK's retail recovery and the growing craze for cycling, Questor advised in the Sunday Telegraph. The shares have risen about 60% since Questor recommended them in early October 2013 but have gone sideways in the past month. The Tour de France has boosted cycle sales and the company has consolidated its position in the bike market by buying out the successful Boardman cycle brand last month. Its car maintenance business is also improving. The Sunday Times's Danny Fortson rejected opposition to Mike Ashley's pay plan at Sports Direct and recommended buying the shares. In his Inside the City column, Fortson said the bonus deal approved by shareholders but opposed by many depended on Ashley, the company's billionaire founder, doubling earnings by 2019 and exporting his discount model to Europe. Better to pay a big bonus for achieving a clear goal years out than dripping millions into bosses' pockets for hitting fuzzier targets. Buy, Fortson advised.Buy shares of Real Estate Investors, Midas recommended in the Mail on Sunday. Its Chief Executive, Paul Bassi, has more than 30 years' experience in the Midlands property market. He buys office buildings or shopping centres that are slightly run down, refurbishes them and rents them to reliable tenants such as government bodies or retail chains before selling them. Property investors are looking beyond London, and at the Midlands in particular. That is good news for Bassi's strategy. He owns 10% of the business, giving him the incentive, along with the local knowledge, to succeed.First Group's shares have gone nowhere this year and are unlikely to rev up from here, Danny Fortson argued in the Sunday Times. The Inside the City tipster said the rail and bus group was likely to face unrest at its annual meeting on July 16th over Chief Executive Tim O'Toole's pay relative to the company's disappointing performance. The company published a moderately optimistic trading statement last week that could take the edge off the shareholder rebellion. But if you are looking for excitement, "take another bus", Fortson said.Stick with Experian shares, Questor said in the Sunday Telegraph. The credit checking company is an excellent investment but the shares are fully priced. Demand for credit checks is increasing and the shares offer dividend growth. The US and UK businesses are getting stronger but growth in Latin America has reversed. At 18 times forecast earnings, hold on but don't buy in now.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.Sean Farrell