Sunday share tips: Lonmin, Icap, ULS Technology

Sell Lonmin shares, said the Sunday Times' Inside the City column. Half a year on from its near-£260m fundraising via a highly discounted rights issue, the platinum miner is heading into a tough month. Interim results are due on 16 May, when the market is likely to see the company has already chewed through a large part of its nest egg, which the company may play up ahead of the next round of pay negotiations with South Africa's mining unions.

The major AMCU union recently said: “Conditions will be improved when people get a living wage. These workers do not get a living wage.” Despite recent cost cutting including 5,000 jobs, Lonmin still has around 30,000 workers. But while Platinum has bounce off its January lows it is still close to half the level five years ago and the company argues its margins cannot bear much of a jump in costs. Analysts suggest Lonmin is loss-making despite its latest restructuring.

Avoid shares in Icap is the recommendation from the Telegraph's Questor. Soon Icap expects to complete the sale of its voice broking business, assuming competition regulators approve the deal, which will leave the company will a near-20% stake in rival Tullet Prebon. Icap, which plans to change it name, will then be focused on its higher-margin but smaller electronic broking service (EBS), with units offering post-trade services, market data, risk mitigation and other services.

A smaller more focused business could be pulled into more of the mergers and acquisitions activity sweeping around the financial services industry. Annual results are due on 16 May and could offer the market a better idea of management's updated plans for the coming years, including possibly the new branding. But at the moment it seems Icap's future is somewhat unsure.

ULS Technology is a small cap stock that looks worth buying, according to Midas in the Mail on Sunday. Set up by a financial adviser and a software specialist, ULS main product is eConveyancer, which offers a form of price comparison site for those buying and selling houses. The conveyancing software is primarily a business-to-business product for solicitors, banks and brokers but also has a consumer-facing option provided via the MoneySupermarket website as a white label product.

the company is keen to expand by adding more business customers, increasing its exposure to consumers and broadening the services it offers. It has launched estateagent4me, which enables consumers to compare estate agents in their area; earlier this year acquired more than a third of online advisory forum HomeOwners Alliance; and a will comparison site was also launched in March. The final results announcement in June is forecast to see profits up by almost a third and a decent improvement to the dividend on top.

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