Sunday tips round-up: Dunelm, Anglo American, Mulberry...

10th Oct 2010 12:01

Many companies that move from family to public ownership find the transition difficult. But household goods retailer Dunelm has gone from strength to strength since floating four years ago, not least thanks to the Adderleys' son Will, who took over as chief executive in 1996.Dunelm aims to offer value for money and extremely good service. While many other store groups claim to pursue the same goals, Dunelm seems genuinely to deliver on both fronts. Dunelm shares are 4201/2p but should trade higher over the next few years. This is a solid company run by experienced managers and backed by a supportive and knowledgeable founding family. Buy says the Mail on Sunday.Miner Anglo American's shares have underperformed since May for two reasons. There have been worries over South Africa, where the bulk of its business is based, over potential nationalisation. There has also been a delay at one of its growth projects. The Telegraph thinks that both these fears have been overdone. Despite the rhetoric from some sections of the ANC, it appears unlikely that the mining sector will be subject to a major asset grab. The shares remain a long-term play on high commodity prices. Buy.Luxury goods group Mulberry was trading at 206p in June. Since then, the price has risen by 138% to 490p. This is an extraordinary performance in such a short term and begs the question - what should investors do now? Supporters of this company believe it has real potential, so the price may well rise further, but the recent increase is eyecatching. Sell 50% to 70% to lock in some profit and keep the rest in case the stock continues to provide rewards says the Mail on Sunday.May Gurney is an infrastructure services group, so worries over austerity cuts have hit the shares hard recently. The group's order book stands at £1.4bn and management says it has a healthy pipeline of sales opportunities in core markets - worth in excess of £4bn. The company has no long-term debt and had just under £30m in cash on its balance sheet at the end of March. It remains a buy says the Telegraph.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.