Sunday tips round-up: Go-Ahead, GW Pharmaceuticals, Royal Dutch Shell

1st Aug 2010 12:21

Go-Ahead operates three train franchises - Southern, Southeastern and London Midland - and eight bus companies. Nearly a billion passenger journeys are taken annually on its services and it runs more than 3,500 buses. Go-Ahead has had a better recession than many of its peers. The shares are 1116p but should go higher. The stock is particularly attractive for investors in search of income and for those prepared to hold for three to five years. Buy says the Mail on Sunday.GW Pharmaceuticals has spent years working on ways to use the healing properties of the cannabis plant in a legal way and in June its cannabis-based drug, Sativex, was approved for sale here. Last week, Spain approved the drug as well and other countries on the Continent are expected to follow. GW is already making money and profits for the year to September are expected to more than double from £1.2m to £2.7m. Investors who bought at 80p may choose to sell half their shares but they should keep the rest. There is also scope for new investors at the shares' current levels says the Mail on Sunday.The Telegraph recommended shares in Shell for their impressive dividend yield - currently 6.3%. After BP suspended its payout, this is very attractive indeed. The shares are trading on a December 2010 earnings multiple of 8.7 times, falling to 7.2 next year - in line with global peers. UK investors should buy the "B" class shares because dividends paid on class "A" shares have a Dutch source for tax purposes. JP Morgan Russian Securities remains a buy, says the Telegraph. Some fund managers would never invest in a Russian-facing company. However, the growth story is pretty compelling. The country has a wealth of natural resources, which should support growth in all sectors. This commodity-based economy means it has joined the likes of Canada, Australia and South Africa in surviving the global crisis relatively unscathed. Sovereign debt is 11% of GDP and the country's mortgage debt is less than 4%.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.