One to Watch

BOVIS designs, builds and sells homes for both the private and public sector in England and Wales. The company also undertakes mixed-use schemes involving retail, commercial and office.

During the year to 31 December, it completed 1,803 homes, increasing reservations of its private homes by 82 per cent and cutting costs by 34 per cent. Improved pricing and lower building costs also resulted in a provision release from its land bank. It has made a solid start to 2010 and with cash of 112 million at the year-end is well-positioned to take advantage of any land buying opportunities that may arise.

Bovis has a good strategic supply of land, mainly in the south where market conditions appear to be better than in the north. The group recently negotiated banking facilities amounting to 150m, which do not mature until 2013. Combined with strong cash-flow of 221m, this means the company is on a firm financial footing and is well-placed to take advantage of any upturn in the housing market. The stock is trading on a 28 per cent discount to its reported net asset value and looks good value.

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 on the suitability of this stock for your portfolio.

Entertainment One

82.5p +2p

Broker says BUY

KBC Peel Hunt has initiated coverage of Entertainment One – the Aim-listed film distributor behind the Twilight saga and Peppa Pig – with a "buy" recommendation. KBC said: "We believe it will make an attractive target for larger film production or distribution groups."

Dana Petroleum

1,177p +11p

Broker says BUY

DESPITE a "mixed exploration update" from Dana Petroleum, Citi has maintained its "buy" rating on the Aberdeen-based explorer. Citi said: "Despite lowering our target price to 1,510p, we maintain our 'buy' recommendation. On our estimates, trading at a 5 per cent discount to the sector, Dana remains one of the cheapest stocks in our universe."