Sunday share tips: Majestic, Hays, Quindell

12th Jan 2014 14:23

Hold on to shares in Majestic Wine, the Sunday Telegraph's Questor column advised. The wine merchant had a good Christmas but in the year to date underlying sales have increased by just 0.8 per cent. The dividend is forecast to grow by 10 per cent in each of the next two years but, though they fell 6 per cent last week, the shares look an expensive buy at 18 times' forecast earnings.Stick with recruiter Hays, Questor said in the Sunday Telegraph. Hays is upbeat on prospects for the UK where rising revenues are making up for reduced business in Australia. The company has diversified into Germany, which is providing further support. Profits are set to rise but Hays shares have already surged in anticipation of UK economic recovery. Trading on 23 times' forecast earnings, they are a hold for now.Buy shares of Aim-listed Quindell, the Sunday Times's Danny Fortson said. In his Inside the City column, Fortson said the insurance claims processor was likely to post a bullish trading update on January 14th. Despite the revelation of a £13m derivatives contract last year that left some investors unsettled, Quindell is on a roll. The shares have almost tripled to near 20p in the past eight months. House broker Killik has set a price target of 50p in the belief more insurers will outsource claims handling to cut costs. Chief Executive Rob Terry owns 12% of Quindell and has every incentive to make this happen.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