BP

Telegraph feature on tips for 2007 from the "experts" features BP



Mark Dampier
Head of research, Hargreaves Lansdown Asset Management

FTSE 100 7,000 (6,000)

Top share BP. The company has no debt, huge cash flow, the ability to raise its dividend and buy back a considerable amount of stock and an above average yield of 3.6 per cent. Finally, it might consider splitting the business into two which could realise value.

Top sector Media. Convergence of technologies, fixed and mobile telephony, broadband and the provision of TV is changing the landscape for both traditional broadcasters and telephone companies.

There will be a scramble for dominance in this emerging market. Just one example is the current ITV/BSkyB/NTL saga.

The accelerating switch of advertising revenues towards the internet will continue to play a part, as will the first signs of increased advertising spend from major corporates.

Top country Russia. To look for the best country stock market, you need to look at the smaller ones. My tip last year was Russia, which is up over 63 per cent and I have decided to stick with it. While commodities such as oil may come off the boil, the domestic story in Russia is very strong, especially in the banking and telecoms arena. Russian unit trust funds' largest holdings can be found among these stocks. The market still looks reasonably good value and could rise by another 30 per cent this year.