My tip this month is James Fisher and Sons, the shipping company, for four good reasons that should see its share price hit 700p over the next 12 months.
James Fisher is a quality business. It runs a marine oil shipping operation around Ireland and the UK. While this has been affected by the slowdown, the group's concentration on high profit margin specialist and technical operations is reaping rich rewards.
The company uses skills learnt in the UK, such as ship-to-ship transfers, in the huge and booming marine service markets of Asia and the emerging countries. Revenues in the latest six months were up 12 per cent at £148m and pre-tax profits were up seven per cent to £13.9m.
Pre-tax profit for the full 2011 should come in at £30m against £25.9m last year.
Buy James Fisher at the best price with a 20 per cent trailing stop/loss trigger to protect you against major market fallbacks.
Malcolm Craig is an investment analyst and author
Stockmarket and alternative investments can fall as well as rise in value. Readers should consult their own professional advisers.
