Risk Warning

I agree

Prime Markets in the Press - Bodycote (BOY)

28/04/2011

Lasers and machine tools are among the engineering products made by 600 Group.
The company has borne the brunt of the recession, incurring two years of losses before moving into the black for the first six months of the current trading period.

Its core markets are beginning to recover, exemplified by its order book up by one-third from the period last year.

Costs have been extracted, including the reduction in the number of its facilities. Of particular importance has been the acquisition of a factory in Poland. This offers the group access to a low-cost manufacturing area, which may well see the majority of its manufacturing operations migrating there from the UK and the Far East.
David Norman, who took over as chief executive in 2008, responded to the challenging trading environment by reducing costs by some £13m, impressive against a turnover of £45m.

The group is a small concern, with a rating still burdened by the past. It is also somewhat off the market's radar. However, a recent share placing increased visibility and was quite well received. The shares appear worth investigating.

600 Group
34p unch
Scotsman says BUY

• The value of your investment could fall and you may get back less than you invested. Take professional advice if you have any doubt about the suitability of this company for your portfolio.

BROKER SNAPS

Bodycote
380p +43.6p
Broker says BUY

ENGINEERING firm Bodycote has a "tough and durable" business plan, according to Prime Markets, which carries an "ongoing buy" rating. Head of dealing Richard Curr added: "Anyone buying into Bodycote in the depths of the credit crunch at sub 100p levels in late 2008 will be sitting on a near 400 per cent return now."

Premier Foods
30.74p +0.09p
Broker says SELL

SHORE Capital has reiterated its "sell" rating on Premier Foods after its first-quarter update. The broker said: "We have been reappraising our stance on Premier Foods, which has been negative for some years now. However, we have also harboured concerns about the strength of the residual business."

The Scotsman

Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.