Tuesday tips round-up: Carillion, Phorm

9th Dec 2014 08:23

Carillion has been "through the wars" as one analyst recently put it, after de-scaling its British construction business and the odd negative publicity surrounding its relationship with suppliers. However, a recent run of contract wins should put to rest any doubts about the company's work pipeline. The announcement that it has sealed a deal to re-develop the main stand at Anfield, for Liverpool FC's stadium, is simply the most well-known example. Furthermore, should rival Balfour Beatty finally be broken up then it may get a second chance to make off with the rest of that company. Nevertheless, the firm continues to face margins under pressure in Canada, as a result of weakness in the energy services market. The shares are a strong hold but until it gets that second chance the upside is limited, says The Times's Tempus.Targeted online advertising technology provider Phorm was once worth £35 a share. The uproar over its Webwise product however did the stock in. The service, which profiled internet users to deliver advertising set off a storm of controversy. That led clients such as Amazon.com and BT to abandon the service. The stock is now trading at just 10p despite the fact that its rivals have developed and deployed similar technologies. Neither did the recent round of fundraising do the company's market capitalisation many favours. Avoid, Tempus says.