Sunday, August 28, 2011

LONDON Sunday tips round-up: Renishaw, Petrofac, Amlin

cup of coffee with ornamental elements Stock Photo - 7460741
Wotton-under-Edge is a quaint country town at the periphery of the Cotswolds. It is also home to Renishaw, a company making some of the most advanced tools and measuring systems in the world. The stock has lost a third of its value in less than a month, hit by concerns about global economic conditions, prospects for manufacturing worldwide and the impact on Renishaw's future growth. These fears seem overdone, says the Mail on Sunday. 

For companies involved in exploring and producing oil, the volatility in its price can be maddening. Prices have fluctuated wildly since the financial crisis and even in the past 12 months they have ranged from below $80 (£50) to more than $130 a barrel. Today the price is about $110 (oil prices are always quoted in dollars). But oil services companies, such as Petrofac, are slightly less affected by these price fluctuations. Brokers widely expect Petrofac to rebound to 1600p or more, says the Mail on Sunday. 

Hurricane Irene has served a timely reminder that we're in the middle of the Atlantic hurricane season - a period of the year when weather reports can make difficult reading for executives at Lloyd's of London insurers. Recent stock market uncertainty means stock market investors should hold on to shares with long-term value, particularly those with high yields. Lloyd's insurer Amlin is a good example of this and currently yields 7.8%, a figure that is forecast to improve to 8.9% by 2013, says the Telegraph. 

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