Sunday share tips: Premier Foods, Halfords, Prezzo

21st Apr 2013 21:39

Recently resigned Premier Foods Chief Executive Michael Clarke has left a smell of 'spoilt food' behind him after his 18-month tenure. While he did push through a vital restructuring he left the job half done. In fact, the company's very existence is still in question. Its deficit is expected to double when it finishes its triennial pension valuation, to which one must add 900m pounds in debt. Indeed, Premier needs to sell more businesses, or raise cash in a rights issue, or both, writes The Times's Tempus. Restaurant group Prezzo has done well for itself in these lean economic times, benefiting from its mid-market position combined with its expansion plans. Hence, the pizza and pasta maker - which has recently started a chain of Mexican food outlets which is set to keep growing in 2013 - saw sales rise by 17% in in 2012 and profits move ahead by 11%, to £8.3m. That for a company whose owning family has had a long commitment to quality and value. "Investors could be forgiven for taking some profits, but so far the group has not let them down and seems set on continuing expansion. Imagine what it might achieve once the economy picks up. Hold," says The Financial Mail on Sunday's Midas column. Investors in car auto parts and bicycle retailer Halfords are awaiting new Chief Executive Officer (CEO) Matt Davies's strategy announcement on the next May 23rd. The hope is that he will be able to work the same magic as at his previous job, as CEO of Pets at Home. Davies has already poached his former business development director - Rob Swyer - from the competition to make his new retail director. The firm is up against formidable challenges, such as the vagaries of the stock market, the growing uncertainty on the high street and on-line competition.Yet looking for companies whose management teams have a good track record may have its merits. In any case, Midas highlights that Halfords is a niche retailer with few direct competitors for its main business. As well, it has cash in the bank, so purchases of other growth firms could be an option. Hence, those betting he has the X-factor may want to buy in before his first true test a month from now, the investment column says. 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.AB