10/15/23, 1:54 PM MoneyWeek - 2023-10-13

8 Shares
MoneyWeek’scomprehensive guide to this week’s share tips
Three to buy
Anglo American are cyclical, and when prices do dividend record and well
The Telegraph rally, the shares, on less than ten placed to tap into the growth
Shares in this mining giant times earnings, will have looked of green energy and artificial
have slumped by a third this a bargain. 2,158p intelligence. 1,638p
year as the global economy
and commodity prices have Smiths Group Tesco
lost steam. A sound financial The Sunday Times The Mail on Sunday
position gives Anglo scope to This FTSE 100 engineering A 14% rise in adjusted profit
keep investing in future capacity conglomerate helps build in the first half of the year scheme. The shares are up by
even during periods of weak everything from airport shows that the UK’s biggest 20% this year, but they still
prices. Its ongoing shift towards security scanners to supermarket has not been look more like something out
copper, iron ore and nickel communication modules for doing too badly amid the the “Value” range on 11 times
leaves it well-placed to tap into space exploration. On 16.4 cost-of-living squeeze. That is a forward profits, a discount to
growing demand for the metals times earnings, the valuation is testament to the firm’s ability to the historic average of14. Add
needed for the green transition “modest” compared with rivals. push for favourable prices with in a prospective 4.5% dividen
and for emerging economies to That looks a fair price to pay suppliers and to capitalise on yield, and the shares are “one
develop. Commodity markets for a business with an excellent the popularity of its Clubcard for your trolley”. 278p
Three to sell
Boohoo “elevated compared to pre- think the payout is sustainable. specialist.Weak demand in
Investors’ Chronicle pandemic levels”. Management Management needs to fund China, where the post-Covid
Shares in this fast-fashion is making progress on margins, major new network investments recovery has stalled, along
retailer are down by 17% with less inventory and other and the “dividend must be a with continued trouble in
so far this year, but may cost-savings, but until sales candidate for the sword” as semiconductor markets, has
have further to slide. pick up, that alone will not be it searches for ways to free up seen the order book shrink.
Boohoo is feeling the enough to spark a rally. 28p cash. While turnaround efforts That has put pressure on an
pressure as consumers may eventually deliver, markets already “stretched” balance
rein in spending. Vodafone remain sceptical. “A dividend is sheet, threatening to take net
First-half revenue fell The Motley Fool no good if we lose the money on debt and gearing “close to or
by 17%. America has There are plenty of juicy the share price.” 75p above current covenant limits
proven more robust than dividends on offer on the FTSE Management is “scrambling”
other regions thanks 100, but they are not all created XP Power to negotiate flexibility with
to a strong dollar, but equal. Vodafone’s “mooted” Shares lenders, while suspending
operations there have been 10% dividend yield for this year An “ugly profit warning” dividends and investment
hampered by trans-Atlantic should be taken as a warning undermines the investment plans. Cut your losses in this
delivery times that remain sign that the market doesn’t case at this power-transformer “overextended” firm. 1,120p
...and the rest
The Mail on Sunday Investors’ Chronicle global recession could prompt the current weakness seems a
Shares in baker Greggs Shares in flooring manufacturer a period of difficult trading, the good opportunity to buy into
have gone a little “flaky”in James Halstead may have found firm has a nice “cash cushion” high-quality operator exposed
recent months amid concern their own floor. The shares have and pays an attractive 3.8% to the growth of the digital
over whether the brand is gained 11% since the spring, dividend yield. Buy (208p). economy (1,118p).
approaching market saturation with sales hitting record levels
with recent store openings. in the year to 30 June. While a Shares The Times
Nevertheless, recent sales Shares in digital services Health and safety engineer
performance has been business Kainos are down by a Halma is a high-quality
encouraging and cost pressures quarter this year amid investors’ business with stable, defensive
 are easing. On a valuation of
20 times forward earnings
disquiet about the departure of
the long-serving CEO. The fears
earnings underpinned23bytimes
state regulations. On
the shares are rather rich, are overdone. The new boss forward earnings the shares
but shareholders should hold knows the business well – he has don’t look cheap, but that is
until we get more updates on been with Kainos for 24 years. actually a six-year valuation
how the expansion strategy is With the shares trading on a low, making this an attractive
progressing (2,392p). discount to historic multiples, entry point. Buy (1,943p).
A German view
Investors in US markets should remember to look beyond the
IPO watch
South Korean robot-maker Doosan Robotics made a spectacula
S&P 500 and explore US small caps, says WirtschaftsWoche. market debut in Seoul last Thursday, says Bloomberg. The
There are plenty of hidden gems in the sector. One to research is shares closed their first day 98% higher, having surged as high
DistributionNOW, which has been providing products and as 160% above the listing price throughout the day. South Kore
services to the oil and gas industry for 160 years. Offerings range is the world’s top “robot adaptor”, employing one industrial
from pipes and pumps to storage tanks and measuring robot for every ten human workers, and both the private and
equipment. The group has a presence in 20 countries and its range public sectors have increased investment in the sector recently
suits the renewable-energy era too, applying to the production of which has helped stimulate interest among investors. Doosan
geothermal and hydrogen energy, for instance. The company is specialises in producing robotic arms to assist with services
debt-free, so it can shrug off higher interest rates, and its return ranging from “making coffee and deep-fried chicken to serving
on invested capital is improving. beer and handling luggage at an airport”.
13 October 2023 moneyweek.c

https://www.yumpu.com/news/en/issue/166066-moneyweek-2023-10-13/read?page=9 1/2
10/15/23, 1:54 PM MoneyWeek - 2023-10-13

8 Shares
MoneyWeek’scomprehensive guide to this week’s share tips
Three to buy
Anglo American are cyclical, and when prices do dividend record and well
The Telegraph rally, the shares, on less than ten placed to tap into the growth
Shares in this mining giant times earnings, will have looked of green energy and artificial
have slumped by a third this a bargain. 2,158p intelligence. 1,638p
year as the global economy
and commodity prices have Smiths Group Tesco
lost steam. A sound financial The Sunday Times The Mail on Sunday
position gives Anglo scope to This FTSE 100 engineering A 14% rise in adjusted profit
keep investing in future capacity conglomerate helps build in the first half of the year scheme. The shares are up by
even during periods of weak everything from airport shows that the UK’s biggest 20% this year, but they still
prices. Its ongoing shift towards security scanners to supermarket has not been look more like something out
copper, iron ore and nickel communication modules for doing too badly amid the the “Value” range on 11 times
leaves it well-placed to tap into space exploration. On 16.4 cost-of-living squeeze. That is a forward profits, a discount to
growing demand for the metals times earnings, the valuation is testament to the firm’s ability to the historic average of14. Add
needed for the green transition “modest” compared with rivals. push for favourable prices with in a prospective 4.5% dividen
and for emerging economies to That looks a fair price to pay suppliers and to capitalise on yield, and the shares are “one
develop. Commodity markets for a business with an excellent the popularity of its Clubcard for your trolley”. 278p
Three to sell
Boohoo “elevated compared to pre- think the payout is sustainable. specialist.Weak demand in
Investors’ Chronicle pandemic levels”. Management Management needs to fund China, where the post-Covid
Shares in this fast-fashion is making progress on margins, major new network investments recovery has stalled, along
retailer are down by 17% with less inventory and other and the “dividend must be a with continued trouble in
so far this year, but may cost-savings, but until sales candidate for the sword” as semiconductor markets, has
have further to slide. pick up, that alone will not be it searches for ways to free up seen the order book shrink.
Boohoo is feeling the enough to spark a rally. 28p cash. While turnaround efforts That has put pressure on an
pressure as consumers may eventually deliver, markets already “stretched” balance
rein in spending. Vodafone remain sceptical. “A dividend is sheet, threatening to take net
First-half revenue fell The Motley Fool no good if we lose the money on debt and gearing “close to or
by 17%. America has There are plenty of juicy the share price.” 75p above current covenant limits
proven more robust than dividends on offer on the FTSE Management is “scrambling”
other regions thanks 100, but they are not all created XP Power to negotiate flexibility with
to a strong dollar, but equal. Vodafone’s “mooted” Shares lenders, while suspending
operations there have been 10% dividend yield for this year An “ugly profit warning” dividends and investment
hampered by trans-Atlantic should be taken as a warning undermines the investment plans. Cut your losses in this
delivery times that remain sign that the market doesn’t case at this power-transformer “overextended” firm. 1,120p
...and the rest
The Mail on Sunday Investors’ Chronicle global recession could prompt the current weakness seems a
Shares in baker Greggs Shares in flooring manufacturer a period of difficult trading, the good opportunity to buy into
have gone a little “flaky”in James Halstead may have found firm has a nice “cash cushion” high-quality operator exposed
recent months amid concern their own floor. The shares have and pays an attractive 3.8% to the growth of the digital
over whether the brand is gained 11% since the spring, dividend yield. Buy (208p). economy (1,118p).
approaching market saturation with sales hitting record levels
with recent store openings. in the year to 30 June. While a Shares The Times
Nevertheless, recent sales Shares in digital services Health and safety engineer
performance has been business Kainos are down by a Halma is a high-quality
encouraging and cost pressures quarter this year amid investors’ business with stable, defensive
 are easing. On a valuation of
20 times forward earnings
disquiet about the departure of
the long-serving CEO. The fears
earnings underpinned23bytimes
state regulations. On
the shares are rather rich, are overdone. The new boss forward earnings the shares
but shareholders should hold knows the business well – he has don’t look cheap, but that is
until we get more updates on been with Kainos for 24 years. actually a six-year valuation
how the expansion strategy is With the shares trading on a low, making this an attractive
progressing (2,392p). discount to historic multiples, entry point. Buy (1,943p).
A German view
Investors in US markets should remember to look beyond the
IPO watch
South Korean robot-maker Doosan Robotics made a spectacula
S&P 500 and explore US small caps, says WirtschaftsWoche. market debut in Seoul last Thursday, says Bloomberg. The
There are plenty of hidden gems in the sector. One to research is shares closed their first day 98% higher, having surged as high
DistributionNOW, which has been providing products and as 160% above the listing price throughout the day. South Kore
services to the oil and gas industry for 160 years. Offerings range is the world’s top “robot adaptor”, employing one industrial
from pipes and pumps to storage tanks and measuring robot for every ten human workers, and both the private and
equipment. The group has a presence in 20 countries and its range public sectors have increased investment in the sector recently
suits the renewable-energy era too, applying to the production of which has helped stimulate interest among investors. Doosan
geothermal and hydrogen energy, for instance. The company is specialises in producing robotic arms to assist with services
debt-free, so it can shrug off higher interest rates, and its return ranging from “making coffee and deep-fried chicken to serving
on invested capital is improving. beer and handling luggage at an airport”.
13 October 2023 moneyweek.c

https://www.yumpu.com/news/en/issue/166066-moneyweek-2023-10-13/read?page=9 2/2