Every weekend, This is Money rounds-up the share tips from the Sunday newspapers.
This week, award winning investment writer Joanne Hart takes a look Trinidad-based oil producer Trinity and updates on Equiniti.
Meanwhile, the Sunday Telegraph runs the rule over property group Shaftesbury whole the Sunday Times focuses on FTSE 250 firm John Laing.
Chinatown: Shaftesbury, featured below, has property in a 15 acre radius of London
FINANCIAL MAIL ON SUNDAY
At its height in 2014, Trinity Exploration & Production was valued on the stock market at about £150million and the shares were trading at 159p.
Then the oil price slumped and the Trinidad-based oil producer found itself with too much debt, too many staff and a bloated cost base.
Chairman Bruce Dingwall was forced to issue nearly 200million new shares as part of a comprehensive restructuring package.
Today, Trinity’s valuation has shrunk to £44million and the stock is 15.5p.
Equiniti provides essential services to most of Britain’s biggest companies, helping them pay wages and pensions, create employee share schemes, raise money on the stock market and distribute dividends.
Equiniti also owns the share-dealing platform Selftrade, and helps firms deal with financial grievances from customers, such as mis-sold Payment Protection Insurance.
Midas recommended the shares in July 2016, when they were 171.75p. Since then, they have risen by 80 per cent to 310p and should continue to deliver strong growth.
Brian Bickell tells the story that some of his residential tenants eat out so much, when he takes back the keys at the end of the lease the operating instructions are often still inside the oven.
The chief executive of property group Shaftesbury provides them with a varied diet. Instead of messaging Deliveroo, those that call London’s West End home have hundreds of restaurants to choose from outside their front door.
It has long been a strategy of Bickell’s to mix eating and drinking with shopping across his 15-acre estate that is clustered around Carnaby Street, Seven Dials, Chinatown, Covent Garden and Soho.
Its mixed London portfolio is well placed to benefit from the Crossrail effect and improved rents are expected on 25 per cent of lettings. It is a potential target for M&A. Buy.
Turbulent stock markets create unforgiving conditions for rights issues – especially when they are priced at a hefty discount.
John Laing, the FTSE 250 investor in roads, railways and schools, tested shareholders’ patience this month with a rights issue priced at a 29 per cent discount.
Investors stumped up the cash. They were soon rewarded. After a blip on the day, its shares have since rebounded. They closed on Friday at 255.6p – above the 251.7p price the night before the rights issue – to value John Laing at £938million.
Was the rights issue really necessary? Analysts at Royal Bank of Canada don’t think so, and reckon it said more about John Laing’s challenges to squeeze cash from selling assets and its high cost base.