Tip of the month

My tip this month is Lloyds, the once great banking group, for three reasons that should see its share price hit 100p by the end of the year. First, the banking group is the focus of highly informed speculation that it is poised to sell £400m of its portfolio of stakes in several companies.

Second, the cash should be returned to shareholders as a reward for staying with the group during sticky times over the past couple of years, in the face of the global financial crisis.

Third, analyst Ian Gordon at Exane BNP Paribas has raised his target price for Lloyds from 65p to 67p. But he urges caution, saying: "We remain positive but not delusional." He adds that the broker is disassociating itself from talk of "any rapid return to a share price above 100p".

Buy Lloyds at the best price, with a trailing stop/loss set at 20 per cent to protect you from any overall market fallbacks during the year.

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