Bradford & Bingley

Seven shares to watch in 2007
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By Nick Louth
December 22 2006
After the regrets for the winning shares missed in 2006, here are seven which could do well in 2007.
Bradford & Bingley
You can’t go wrong with a cheap bank that pays good dividends, and that is exactly what Bradford & Bingley offers. Despite recent progress in the share price, the price-to-earnings ratio (P/E) is 12.2 based on forecasts for 2006 results, and that is combined with a 4.2% dividend yield.
B&B still has some issues with mis-selling provisions, which cost £89.4 million in the half year to end June, but its trading statement this month showed that credit quality is improving and there is plenty of growth, albeit in lower margin areas.
B&B is ultimately a takeover candidate too, and as with Alliance & Leicester, that is what really supports the value of these sub-scale players