Sunday share tips: Lonmin, Marshalls, Robert Walters

7th Apr 2013 23:04

The current head of engineering at Anglo American´s platinum operations, Ben Megara, will take over troubled miner Lonmin in July. He has inherited a basket case. The company´s production was shuttered for six weeks last year, due to 'wild-cat' strikes at its main Marikana mine, which was only solved by wage increases. Further salary increases are likely in about two months´ time, when negotiations with workers resume. That would come despite already having one of the highest cost bases in the industry. For some analysts the only solution would be increased demand for automobiles in Europe, something which some industry leaders think unlikely for three years. The odds are so stacked against Megara that mere survival would be considered victory. Good luck to him, says The Times´s Danny Fortson. After five difficult years for renowned man-made stone supplier Marshalls, which in 2008 forced it to close 4 of 17 sites, there are now signs of recovery. The firm now has more orders than ever since early 2008 and may benefit from the Government´s drive to kick-start the housing market. That, certainly, is the hope. It is also working on many commercial projects across the UK and has few competitors. The group is well positioned to benefit from economic recovery and the shares are an attractive long-term investment. Buy and hold, says the Financial Mail on Sunday´s Midas column. Robert Walters, the recruitment firm, has diversified both geographically and by business lines. It now has offices in over 24 countries and banks account for only 15% of its income, versus 30% three years ago. There are fears about a downturn in Australia, as some worry that the commodity boom will wither. Yet for now none has been forthcoming. As well, other areas are expected to pick up the slack. Simply put, the company has not been given due credit by investors for its strategic successes. Buy, Fortson tells readers. 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.