One to Watch

Brewin Dolphin is broker to Renew. Interims in May were in line with our expectations and the 30 per cent increase in the order book was a particularly positive feature of the announcement given the challenging market backdrop in the building sector as public sector workloads start to fall in response to budgetary cuts. The fall of more than 30 per cent in the company's pre-tax profits for the period was not unexpected given the deterioration in market conditions last year.

Over and above the improvement in the order book, Renew is supported by a strong, cash-rich balance sheet. On fairly conservative earnings forecasts Renew's shares are trading on a prospective price earnings ratio of less than six and offer what we believe to be a secure dividend yield of 10 per cent. The market in the shares is quite tight but might well be worth a look.

l The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this stock for your portfolio.

Renew Holdings

31.5p unch

Scotsman says BUY

BROKER SNAPS

Cineworld

197p +3.5p

Broker says BUY

KBC Peel Hunt has initiated coverage of cinema chain Cineworld with a "buy" rating. The broker said: "There would appear to be numerous opportunities to transform the perception of Cineworld from a relatively defensive non-cyclical business into one that can deliver dynamic earnings growth."

Mitchells & Butlers

303p -3.6p

Broker says SELL

FOLLOWING Thursday's sale of 52 lodges, Seymour Pierce has reiterated its "sell" rating on pubs giant Mitchells & Butlers. The broker said: "We make no change to our bottom of the range forecasts and retain our stance based on the view that M&B is a high-risk stock and should trade at a discount to the sector."