Sunday share tips: Severn Trent, Old Mutual, Genel Energy

Severn Trent is Dominic O'Connell's recommendation. The water regulator's crackdown has not been as bad as feared and there is the possibility of a takeover because sovereign wealth and infrastructure funds like the British water industry.

Old Mutual has been laying solid foundations in African financial services and the UK investment sector, Simon Duke said. The shares are modestly priced and if Chief Executive Julian Roberts decides to break up the disparate group they will soar.

Danny Fortson opts for Genel Energy, the oil producer run by former BP boss Tony Hayward. The shares are risky because of the falling oil price but production is set to jump and Genel is likely to pay a substantial special dividend.

BAE Systems is a sound pick, according to Matthew Goodman. US defence cuts may have bottomed out and high-profile hacking attacks could attract new business to BAE's cyber-security arm. The shares also yield 4%.

Boohoo.com has plenty of room for growth, according to Oliver Shah. Unlike online fashion rival Asos it sells mostly its own lines and does not depend on supportive brands. Boohoo has a strong following with young customers.

John Collingridge opted for Kier Group. The support services company is strong in road building, housing and utilities, which are resilient parts of public spending. It is a balanced business and will be strengthened if it buys road repairs business Mouchel.

Poundland shares are not cheap but they are still worth owning, Dan Dunkley argued. The budget retailer is opening 60 stores in the UK and Ireland this year and is expanding in Spain.

Aimee Donnellan argued that after years of battling scandals Barclays could be bouncing back. The bank is less reliant on investment banking, putting it on a more stable footing. It faces a fine for foreign exchange manipulation but that may be factored into the share price.

The Restaurant Group hit what it called a "bump in the road" in November as growth slowed and opening costs rose. Matthew Goodman in the Sunday Times's Inside the City column argued those problems could be fading because the festive season was good for pubs and restaurants and recent blockbuster films have helped fill cinemas where the owner of Frankie & Benny's has many of its outlets.

The takeover of Prezzo by private equity firm TPG should be a formality when shareholders of the Italian restaurant chain vote on January 8th, Matthew Goodman said in the Sunday Times. A remaining question is why activist fund Elliott has built a 12% stake in Prezzo. Goodman surmised that Elliott bought some or all of its shares for less than the offer price, letting it cash in on the deal.

Midas in the Mail on Sunday has tipped three shares to buy in 2015:

Midatech, an AIM-listed healthcare company, uses gold particles to treat cancer, diabetes and other conditions. The technology works alongside existing drugs to make cancer treatment more effective. Midatech is also working on an oral insulin strip to replace injections for diabetes patients. The first product from Midatech's experienced team should come to market within 18 months.

Michelmersh Brick Holdings was operating at full capacity last year after suffering during the recession. The UK now has a shortage of bricks and, though political uncertainty could affect the construction sector, houses need to be built and Michelmersh is one of the best. Dividend payments may also to resume this year.

Hayward Tyler is a top-class UK engineering company that makes "mission critical" pumps and motors for sectors such as energy, oil and gas and petrochemicals. The company has secured Government funding to double the size of its Luton plant and is benefiting from strong growth in the US and Chinese energy sectors.

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