LONDON Tips Watcher Alert (UK) - Sunday tips round-up: Wm Morrison, Mulberry, Jupiter

Date: Sunday 06 Jun 2010

Supermarket chain Morrisons does not have a meaningful non-food offer. Nor does it have small convenience stores. Nor has it branched into online retailing or opened stores overseas.

All of these present opportunities for new chief executive Dalton Philips – he just needs to work out where to focus his ambitions. The company is very well-regarded in the City, but until the new chief sets out his strategy – likely to be later this year – sit on the shares. Hold says the Telegraph.

Posh handbag maker Mulberry's results for the year to March 2010 will be published next week and brokers expect profits to increase by more than 40% to £6m this year, rising to £6.6m in 2011 and £8.7m the year after. A dividend of 2p is forecast for 2010, increasing to 2.2p next year. Mulberry shares have come a long way over the past year and now stand at 2021/2p. City analysts believe that the shares should rise to more than 250p over the next 12 months and considerably higher over the next five years. Buy says the Mail on Sunday.

Shareholders in National Grid who can afford to buy new shares in the rights issue should do so. Those who cannot and hold fewer than 500 shares should sell their entire holding says the Mail on Sunday.

A few weeks ago, when talk of fund manager Jupiter's flotation first surfaced, the prices under discussion were much higher than they are today. Buying shares in a fund management firm is not without risk, as it exposes investors to the ups and downs of the stock market. But these shares have been priced to go. So, for the more adventurous investor, it may be worth having a punt suggests the Mail on Sunday.

Youngs, the brewery and pub company, released its full-year results last week and said that it had put in a "resilient" performance in a challenging market. Revenues were up by 1.1%, showing a slight slowdown over the company's second half, and the dividend was increased by 2%. Youngs reported pre-tax profits slightly ahead of analysts' forecasts and said that it saw an improvement in its accommodation business. The dividend yield is a sturdy 2.5%. Buy says the Telegraph.