Every weekend, This is Money rounds-up the share tips from the Sunday newspapers.
This week, our award-winning investment writer Joanne Hart takes a look at the Brazil-based firm Harvest Minerals and updates us on the broadband company Satellite Solutions Worldwide.
Meanwhile, the Sunday Telegraph runs the rule over high street bank Barclays while the Sunday Times focuses on BCA, the firm that owns and operates the UK and Europe’s largest used vehicle exchange.
Over the next five years, almost half of all new agricultural land is expected to be in Brazil, making it one of the fastest-growing farming economies on the planet
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Brazil is one of the world’s largest exporters of agricultural products and most of Brazil’s crops need extra nourishment to flourish but about two thirds of the country’s fertiliser is imported, which is expensive and, at times, unwieldy.
The government is keen to change this, with a stated aim of being self-sufficient in fertilisers by 2020 and Harvest Minerals is ideally placed to benefit from this, says Joanne Hart in this week’s Midas Share Tips.
Its shares are 17p but brokers believe the price should hit 40p in the next few years, as the firm expands and develops.
Founded three years ago by Brian McMaster and Luis Azevedo, the firm has four assets, the most advanced of which, the Arapua fertiliser, is already in production and generating sales.
The company’s fertiliser is low-cost and high-margin too, so the business should develop into a highly profitable operation. Like most early-stage firms, Harvest Minerals is not without risk, but the shares could prove to be a rewarding punt for adventurous investors, especially at the current 17p price.
Joanne also looks at Satellite Solutions Worldwide this week, the firm providing high-speed internet access for remote, rural communities and households.
It joined the London Stock Exchange’s junior Aim market in May 2015 when it had 10,000 customers and today, it has more than 100,000 and the numbers are rising every month.
Flying high: Andrew Walwyn’s firm helps with slow internet access
The firm has grown both organically and via acquisition, including two deals last month in Italy and Germany which were funded via a £12 million share placing, which leaves the firm with £3 million of cash for small acquisitions and general investment in the business.
It has grown rapidly in the past two years and the shares have almost doubled in price but Joanne says the best is yet to come and existing investors should hold while new investors could still see value at today’s price.
In this week’s Questor column for The Sunday Telegraph, James Ashton looks at Barclays and says what appeals now is the bank’s investment banking franchise.
The purchase of Lehman Brothers 10 years ago gave it a strong foothold with international clients and this is central to Jes Staley’s strategy.
James says the bank’s potential is yet to be recognised in its share price and the dividend will more than double to 6.5p a share this year, returning it to 2015 levels.
Barring any unforeseen dramas, there is value to be had with Barclays and James’s verdict is to buy.
In this week’s Inside the City column with John Collingridge, a spotlight is shone on BCA, the firm that owns and operates the UK’s and Europe’s largest used vehicle exchange.
It is the spine that link what it says are 50 per cent of car movements in the UK and its growth was turbo charged in 2015 when it was bought for £1.2bn from buyout firm Clayton, Dublier & Rice.
Webuyanycar moved BCA from its core of collecting commission via auctions to buying and selling cars online. It has also got into car finance in a big way and in September it financed 11.3 per cent of all vehicles it sold.
However, new car sales are sluggish, the car market is looking fragile and with a debt of £287.4m, it’s one to avoid.