Technologies will look positive this year

As I wrote in my earlier blog posts you will notice that the companies featuring in recommendations lately have tended to be technologies, natural resources and services. These are the ones set to see the most growth this year. The company that stood out today was Micro Focus International which producers software that helps main frame computers interface with the internet.  The company recently put out a managment statement announcing that trading outlook remains in line with management expectations for fiscal 2010. Analysts were expecting the company to report earnings per share (EPS) of $0.56 on revenue of $427 million for fiscal 2010.  The company was give a recommendation by Panmure Gordon today but it also features in the Blackrock UK Special Situations fund. This is a fund made up of technology and industrial stocks. Richard Plackett, who has been running the fund since the end of May 2004, likes industrial and technology shares and has over 70 to 75 percent of the portfolio weighted in small and mid cap stocks which are exposed to global growth.

Plackett said businesses that are successful have the same things in common.


"We like stocks which are benefitting from a recovery in the global economy as around 70 percent of the earnings of the UK stockmarket come from overseas,"

"We like management teams that combine the ability to sell their products and can control the ability to grow and have a strategic focus," he said.

"We focus exclusively on companies that can generate cash and avoid early stage companies. We analyse the long-term track record of companies and whether management has shown the ability to add value to shareholders."

The other technology stock he holds is Aveva. Aveva designs software systems for oil and gas projects and nuclear power stations. The company has a strong fothold in Brazil and Asia, both locations that have shown strong positive growth.

Broker Recommendations Today

Company	Old Target (current price)	New Target	Broker (s)
Tullow Oil	(1175p)	buy	Bank of America
Halma	(242.7p)	buy	Investec
Shaftsbury	(382.4p)	buy	FinnCap
HMV Group	(73.9p)	buy	Nomura
St James Place	(256.2p)	242.8	Panmure Gordon
Intercontinental Hotels	(920p)	920.5 (Hold)	Panmure Gordon
Micro Focus Itl	(457.2p)	456.6	Panmure Gordon
Rentokil Itl	(116.2p)	115.6	Panmure Gordon

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