Sunday share tips: Asia Resource Minerals, Bellway, Hangar8

Sell shares of Asia Resource Minerals, Danny Fortson advised in The Sunday Times. The Inside the City tipster said the company, formerly known as Bumi, became further entrenched in the "99% club" after its shares hit a new low of 10.25p, less than 1% of their record high. After it bought big Indonesian coal mines chaos ensued but what has hit the company recently is the plunging price of coal. Founder Nat Rothschild has pledged to underwrite a rights issue, despite Asia Resource handing out $465m to investors only five months ago. The company is also burdened by debt. “Dilution on an epic scale” approaches if there is a rights issue, Fortson concluded.

Shareholders should stick with shares of Bellway for income, Questor said in the Sunday Telegraph. The UK property market may be cooling down but the housebuilder’s profits are still rising and the order book is solid, supporting future revenues. The board has been returning bumper profits to shareholders and the group has an attractive prospective dividend yield of 3.8%.

Buy shares of Hangar8, the AIM-traded private jet operator, Midas recommended in The Mail on Sunday. The company has gained from companies and super-rich individuals avoiding the inconvenience of commercial travel. Hangar8 will merge with another operator, privately owned Gama Aviation, on January 6th. The combined company will have the scale to demand better deals on fuel and landing fees and will be able to hire more experienced crews and fly from more airports. Investors can buy Hangar8 shares now or buy Gama Plc shares when the merger completes. The price should rise.