Tip of the month

My tip this month is Aga Rangemaster for a string of good reasons that should see the share price move ahead by 50 per cent over the next year.

The share price is low because the company's sales are linked to the fortunes of the UK property market. And with an upturn in housebuilding still on the far horizon, now is the time to buy. Aga is still profitable and profits will take off as we pull out of the recession.

There are takeover hopes and the company is vulnerable because of its useful cash pile. Sales for Aga's iconic cookers and burners have taken a hit, but the rebound will be strong as the fortunes of prospective buyers improve.

For income-seekers, Aga also offers a useful dividend yield. The company has entered the US market with its Marvel range and has reorganised itself to produce more dollar income. Buy Aga Rangemaster at the current price, with a 20 per cent stop loss to protect you against stockmarket fallbacks.

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