Tip of the month

My tip this month is Greggs, the nation's biggest sausage roll and sandwich maker, for five good reasons that should see its share price hit 650p this year.

Greggs announced sales up 4.8 per cent to £658m in 2009 and pre-tax profit rose eight per cent to £48.8m.

The baker cut costs in its supply chain and closed down underperforming stores. It has also withdrawn from its Belgian operations.

The group plans to open up to 60 stores in the UK this year, having focused on 600 potential new sites for bakeries.

Greggs has also introduced a "concept shop" chain in southern England to tempt more affluent customers to buy a range of pastry goods. Twenty four of these stores are to open in London after positive trial results. And finally, cash in the company's balance sheet has jumped from £2.1m to £34.6m.

Buy Greggs at best price with a 20 per cent trailing stop/loss to protect you against any major stockmarket fallbacks.

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