Thursday newspaper share tips: SABMiller, JD Sports Fashion and Smart Metering Systems

It comes on the back of Wednesday’s news that AB InBev is planning a takeover of the brewing company. The value is big (a combined enterprise value of $306bn and combined net profit of $13bn), the benefits are big, and the cost savings are big.

On top of that, it’s not AB InBev’s first acquisition party – they’ve already added Interbrew, Anheuser-Busch and Grupo Modelo to their bar to become the largest brewer, and want to invite the world’s second biggest brewer for a drink.

As for AB InBev, if the deal goes through investors may realise it leaves little else in the sector left for the "acquisition machine" that is the belgian brewer to go after in the sector. So what comes next? Lex asks.

If you’re holding JD Sports Fashion, The Times’ Tempus column reckons it’s time to take a win and take some profits. The sports fashion and outdoor group has nearly doubled their share price from 539p when it was originally tipped in April, up to 923p. Given that rise through the summer there must be some temptation to take a few profits.

For the sports fashion division, sales growth and new stores led to a 62% operating profit rise to £52.1m, exceeding expectations. The stock sells on 18 times earnings which is high but about right for a retailer with those growth prospects, though given the rising share price through the summer there must be some temptation to take a few profits.

And over at The Telegraph’s Questor, advice is keep the meter running and hold on to Smart Metering Systems. The AIM-listed stock enjoyed a 37% jump in profits during the first half and it’s currently in expansion mode as it takes advantage of the Government’s legislation on smart meters. Questor thinks smart meter companies will take about five years to pay down their debts before starting to rake in the profits.

While the shares are looking a bit pricey now, it would be worth looking for a few dips and an opportunity to snap up a some shares.