Uk stcoks

Fundamental Highlights

• Barclays is offering shareholders to buy one new share at 185 pence for every four owned. It 

is raising capital to meet tougher rules on leverage introduced by UK regulators.

• "I'm buying my rights, I'm bullish on Barclays ... Barclays has become a better and stronger 

institution," Diamond said on CNBC television on Friday.

• The news that the UK housing market has been enjoying something of a mini-boom in 2013 is 

most welcome for banks such as Barclays (LSE: BARC) (NYSE: BCS.US).

• Barclays offers exciting growth opportunities over the next year. Indeed, earnings per share 

are forecast to grow by 21% in 2014 alone, making Barclays a true growth stock in the short 

to medium term.

• shares currently offer excellent value for money. They trade on a price-to-earnings ratio of just 

8.5 -- well below the FTSE 100 on 15 and the wider banking sector on 17.

• So, excellent growth prospects, a sound financial footing and attractively valued shares make 

me optimistic about the outlook for shareholders in Barclays.

KEY EVENTS:

Oct 30, 2013

Barclays PLC Q3 2013 Interim Management Statement - 7:00am GMT - 

Oct 8, 2013

Wolters Kluwer NV at Barclays Roadshow 

Oct 7, 2013

Wolters Kluwer NV at Barclays Roadshow-Chicago 

• HSBC Holdings (LSE: HSBA) (NYSE: HBC.US) recently earned itself a remarkable 

compliment. Top UK fund manager Neil Woodford -- whose High Income fund delivered a 

1,830% return between 1988 and 2012 -- described it as "an investable asset"

• HSBC currently trades on a historic P/E of 15 and a 2013 forecast P/E of 11.5. The equivalent 

figures for the FTSE 100 are 17.4 and 14.2, so HSBC looks attractively priced against the 

wider index.

• In his article, Mr Woodford also mentioned that HSBC's sizeable exposure to Asia is a 

potential risk. Last year, 60% of HSBC's pre-tax profits came from Hong Kong and the Asia-

Pacific region, compared to just 21% in Europe.

KEY EVENTS:

Nov 4, 2013

HSBC Holdings plc Q3 2013 Interim Management Statement

 Wolters Kluwer NV at Barclays Roadshow-Chicago

Fundamental Highlights

• Rio Tinto (LSE: RIO) (NYSE: RIO.US) reported declining earnings in its recent half-year 

results. Underlying earnings per share (EPS) fell by 18%, with lower metal prices and a higher 

effective tax rate only partially being offset by record iron ore shipments and cost savings 

momentum.

• Rio Tinto's prospects for the following three reasons: 

Firstly, it offers a prospective yield of 4%. Although growth is crucial, dividends are still important so, 

looking to 2014 forecasts, a yield of 4% is above-average and is a very attractive additional string to 

Rio Tinto's bow. It also helps me to beat inflation and easily trumps the best savings account rates on 

offer.

Secondly, shares are extremely cheap, trading on a price-to-earnings (P/E) ratio of just 10.2. This 

compares very favourably to the FTSE 100 on 15 and to the basic materials industry group on 11.5.

Thirdly, Rio Tinto offers high growth forecasts, with EPS expected to increase by 18% in 2014. 

Combining this growth rate with the P/E ratio gives a price-to-earnings growth (PEG) ratio of just 0.57. 

This is extremely attractive and, in my view, shows that shares are a bargain.

KEY EVENTS:

Oct 15, 2013

Rio Tinto PLC Q3 2013 Operations Review

• Tesco has been losing ground rather than winning in the trench warfare of UK grocery market 

shares. The four middle-ground supermarkets have been squeezed by top-end Waitrose and 

bottom-end Aldi and Lidl, with only Sainsbury's improving.

• Tesco controls 30% of the market, nearly double its nearest competitor.

• Tesco hasn't been much of a growth share, and through the recent recession the price has 

been a bit erratic and, overall, is down a bit. But that 4% dividend per year, compounded over 

the long term, will have provided a steady overall return for shareholders.

• Warren Buffett is a big long-term fan of Tesco, and he's not too bad at the old investing lark.

KEY EVENTS:

Dec 4, 2013

Q3 2013/2014 Tesco Plc Interim Management Statement 

Oct 2, 2013

Interim 2013/2014 Tesco Plc. Earnings Releas

Fundamental Highlights

• Vodafone (LSE: VOD) (NASDAQ: VOD.US) is currently experiencing after all the hype from 

the sale of its 45% stake in Verizon Wireless to Verizon Communications.

• Vodafone remains a stock that I am bearish on for the following three reasons:

Firstly, I have doubts about its strategy. Selling the best part of the business doesn't make sense 

at the best of times, but giving the proceeds back to shareholders and pursuing acquisitions in less 

attractive markets makes the sale look like a strange move.

Secondly, earnings per share (EPS) growth is faltering, with the market forecasting just a 1% 

increase this year. This is less than the UK economy is expected to grow by.

Thirdly, Vodafone's yield may be relatively high at 5.1% but it masks the problems in the rest of 

the business. Therefore, I feel it is just a matter of time before the market is able to see beyond a 

generous yield to uncover the strategy shortcomings, with investor sentiment taking a hit should this 

take place.

KEY EVENTS:

Nov 12, 2013

Interim 2013 Vodafone Group PLC Earnings Release