Tuesday newspaper share tips: Rotork exposed to more losses, Jupiter Fund "not that bad"
With shares sliding in Rotork, one newspaper pundit is again advising traders to sell.
Financial Services
16,655.77
17:09 18/11/24
FTSE 250
20,395.41
17:09 18/11/24
FTSE 350
4,473.50
17:09 18/11/24
FTSE All-Share
4,431.13
16:49 18/11/24
Industrial Engineering
11,862.06
17:09 18/11/24
Jupiter Fund Management
81.00p
16:34 18/11/24
Rotork
317.80p
17:15 18/11/24
The Telegraph’s Questor noted on Tuesday that the shares look exposed to even more losses.
It came after a brief recovery for the company, following a profit warning last month that August had been weak due to customers cancelling projects. The company cut its full-year pre-tax profit guidance by 30% to just over £100m. On top of that, the oil price slump has forced a slowdown in the group’s order book, down 9.5% for the first half.
Questor had previously advised selling the shares at £28.13 in August 2014 (281p once adjusted for the company’s 10-for-one share division in May 2015), when it believed the company could be exposed to a slowdown.
While Questor believed Rotork was a quality company that had invested in its technology and manufacturing capacity, it said that the shares are still traded on 20 times forecast earnings despite the outlook.
Meanwhile The Times’ Tempus has an idea of what investors could do with their money – buy shares long-term in Jupiter Fund Management.
Despite a “difficult market backdrop” blamed for a dip in assets under management at the FTSE 250 investment firm, Tempus said its performance was "not that bad". It noted that the shares haven’t done much over the last few months but have avoided the falls from elsewhere in the sector.
It noted that the company is well placed to benefit from any future growth in the sector, and shares have a good dividend yield to support it. It said investors are getting “reasonable income to wait for those long-term benefits to kick in”.