One to watch: DS Smith
In an evermore environmentally conscious world, DS Smith looks well placed. It has a number of first-class customers, including Proctor & Gamble and Nestle, with the emphasis on reproduction of most aspects of paper and plastic packaging from recycled waste.
Although still principally focused in the UK, the acquisition of O2OR, a French concern manufacturing recycled corrugated packaging, has taken it into Europe.
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Hide AdPackaging is, to an extent, sensitive to industrial activity generally. In addition, increasing emphasis on recycling should benefit the company.
On consensus forecasts, DS Smith shares are trading on a p/e of a little over 12 and offer a dividend yield effective of about 3 per cent, with the prospect of a more generous distribution policy as earnings improve. This appears to, as they say, tick many of the contemporary "recycled" and environmental boxes.
DS Smith
208.7p +1.6p
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
Cairn Energy
442.9p +7.1p
Broker says BUY
Royal Bank of Scotland said the positive share price reaction to Cairn's presentation on Greenland exploration this week was justified by the size of the play. "The knowledge base is impressive and this year's drilling campaign should be much better informed than in 2010," it added.
Paragon
193.8p +3.8p
Broker says SELL
Richard Hamilton at Numis said: "Paragon is high risk, pre-impairment operating profits continue to fall, loan book continues to shrink, significant negative economic profit, premium valuation and poor single-digit ROE with almost no impairment." And he said a rise in interest rates could further damage the lender.