Sunday share tips: Home retail, Panmure Gordon, Ocado

14th Sep 2014 13:16

UK consumer confidence remains fragile, making Home Retail Group's shares no better than a hold, Questor said in the Sunday Telegraph.The owner of Argos and Homebase's shares fell last week by saying DIY sales had fallen faster than expected. Argos sales are doing much better, helped by demand for electrical goods and gadgets. The group has used click-and-collect sales to reposition itself as an online retailer and John Walden, its boss, has said he is confident of meeting annual profit forecasts. But that depends on good Christmas trading, making Questor cautious.Sell shares of Panmure Gordon, the City brokerage, Danny Fortson advised in his Inside the City column. The Sunday Times journalist said Panmure had failed to capitalise on this year's flotation frenzy, ranking 27th. This shows there are too many brokers chasing advisory work. First-half profits are expected to jump from £300,000 to £1.8m and that may give Panmure's shares a lift. But chief executive Philip Wale, despite sorting out some of Panmure's problems, has powerful forces stacked against him. "It's a big ask," Fortson said.Dispose of Ocado shares, Questor advised in the Sunday Telegraph. Its concept of creating a dominant online supermarket is attractive but it doesn't seem to be working. Average order numbers increased in its most recent quarter of trading but the average purchase fell. Ocado is due to make its first annual profit this year but its margins are thin and vulnerable to price pressure in the supermarket sector. Its price-to-earnings ratio is 158 times, which is ridiculous. There is way too much risk and investors should sell, Questor concluded.Advanced Oncotherapy is building a new generation of proton accelerators that will be smaller, lighter, cheaper and more accurate than the £150m-plus models used now for cancer treatment, Midas said in the Mail on Sunday. Sanjeev Pandya joined last year as chief executive and has secured letters of intent from two of Britain's biggest private medical groups to buy six of Advanced's machines. The company has other sales prospects. It is lossmaking but analysts believe it will be profitable from 2016. Early stage technology is always a risk but buy the shares, Midas said.Velocys shares have risen since Midas recommended them in September 2008 though they were hit by the financial crisis for a while. The Mail on Sunday tipster said the company's method for turning waste products and natural gas into diesel, jet fuel and speciality chemicals is potentially groundbreaking. The company has started building its first plant in the US and is now on the verge of achieving commercial success. Shareholders who bought six years ago should hold on while adventurous buyers could take a punt.