Sunday share tips: Norcros, Restaurant Group, African Minerals, Marshalls

1st Sep 2013 16:59

Buy bathroom supplies company Norcros and watch the shares gain from the recovering housing market and wider economy, the Mail on Sunday's Midas column said. Norcros owns Triton showers, Johnson Tiles and Vado bathroom accessories. The company performed well even in the downturn and is highly efficient and well managed. Buying Vado this year gave Norcros more products and markets, particularly in the Middle East where business is strong. With a plan in place to double sales by 2018, Norcros is poised for growth.Business is brisk at The Restaurant Group but the multiple is a mouthful the Telegraph's Questor column said. Pre-tax profit up 15% to £280m beat expectations on August 30th as rising consumer confidence tempted customers to eat out at Garfunkels, Frankie & Benny's and its other chains. The group has also focused on out-of-town sites at shopping centres, cinemas and airports, insulating it from competition. But the shares are close to their all-time high of 565p and trade at a hefty 21 times 2013 earnings estimates. The good news is in the price and investors should avoid for now.African Minerals is a favourite of analysts at Macquarie but the iron ore miner's new management team is unproven, the Sunday Times's Danny Fortson wrote. Macquarie reckons the shares will rise 62% from their current price to reach 307p - fuelled by a lack of new projects that will keep global production low. But new Chief Executive Bernard Pryor and Finance Director Matthew Hird have a big task ahead of them to maintain production and keep costs low. The shares have fallen 40% in the last year and there will be bumps in the road, Fortson wrote in the Inside the City column.Sell paving specialist Marshalls, the Telegraph's Questor recommended. Business is picking up and interim pre-tax results swung to an £8m profit from an £11.5m loss a year earlier. The order book is also at a record but the company still relies on the public and commercial sectors for two thirds of its business so Government cuts could cause some pain. After the shares rose 56% this year they now trade on a multiple of 26 times forecast annual earnings - a hefty valuation for a cyclical business.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.