Sunday newspaper share tips

13 April 2012

EACH weekend, This Is Money brings you a round-up of shares being recommended in the Sunday City pages.

Sunday Telegraph

ITV has had a troubled time recently, with ITV1 audiences falling due to competition from free digital TV platform Freeview and satellite broadcaster Sky.

The shares have lost almost a third since their 12-month high of 150p in February and the company's plan to save £100 million a year is not exactly a convincing long term growth strategy.

However, the shares have been oversold. ITV is expected to say next week it is very much on track to deliver the cost savings and its crucial autumn programming line-up looks promising. The shares look set to recover. Buy.

The Business

OIL and gas explorer Cairn Energy has kept brokers and investors happy with good news since it found a rich oilfield in northern India earlier this year.

Brokers latched onto Cairn at an early stage and most remain confident, particularly following news of a further find in Rajasthan last month which could yield 300m barrels.

Merrill Lynch, ABN Amro and Seymour Pierce are all recommending investors to buy the shares.

The Observer

HBOS shares were trading at a discount to other banks, even before it said it may try to buy Abbey National, due to the overheated British property market. Now the shares are even cheaper because the City fears it will win a bidding battle for Abbey with Spanish bank Santander Central Hispano.

But investors worry too much. Shares in Royal Bank of Scotland recovered strongly after initial falls following its acquisition of NatWest in 1999 and there is big potential for HBOS to make savings by closing Abbey branches and eliminating duplication.

Assuming HBOS makes a bid which receives regulatory approval, the shares will eventually become a clear buy.

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