Tip of the month

My tip this month is Romag, the high-tech solar panel maker, for four reasons that should see its share price climb above 120p in 12 months.

First, latest full-year results showed a rise in pre-tax profit of 35 per cent on the previous year, at £3.73m on sales up 93 per cent at £33.6m.

Second, profit growth will take off after a relatively flat period. Sales have fallen lately due to the recession in the building sector. Romag's panels are used in windows, not roofs, which means the conversion of light to electricity can be maximised.

Third, the company exports over 80 per cent of its panels. It is seeking new opportunities in the Middle East.

And fourth, the installation of two new production lines will allow it to double output.

Buy Romag at the market price, with a 20 per cent trailing stop loss to protect you against any major stockmarket fallbacks.

Stockmarket and alternative investments can fall as well as rise in value. Readers should consult their own professional advisers.