The Sunday Telegraph asked a group of experts for opinions. They tipped advertising company WPP. Recent takeover speculation surrounding WPP's smaller rival, Aegis, highlights both the value and opportunity in this industry. However, WPP's eventual decision not to bid for Aegis came as a relief. WPP's emerging market exposure should be a powerful driver behind the company's growth.
Costain was also mentioned. It should benefit from participation in a variety of Government infrastructure developments, and potentially from the Olympics. There is a hope that it will return to paying dividends next year. Elsewhere, tipsters liked the look of Talarius and Provident Financial.
The Sunday Times
The Sunday Times' team of writers gave their tips for 2006. United Business Media is a strong tip for the year. Chief executive David Levin has a war chest of more than £600m, which he aims to use on small acquisitions to create a media group for the digital era. His business-to-business print titles are suffering from declining advertising revenues, but he intends to use the brand strength of the titles to build up an online presence. It is working, but progress is slow. UBM's other operations include its exhibitions arm and information service, PR Newswire.
Elsewhere. Easyjet is tipped as a risky buy. The stock has enjoyed a decent run in recent months, but there remain two reasons for buying it. One is the prospect of a bid from FL Group, the parent company of Icelandair. The second is a new incentive programme for management, which gives them big rewards if they meet targets for return on equity.
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