One to watch: Fiberweb

The construction side of the business has been weak in the US over recent years, reflecting the stagnant housing market. That said, the European construction business remains buoyant and has helped to offset the US performance.

Increases in raw material costs over the past year have squeezed margins in the first half of 2011, which has somewhat dented the strong increase in sales across the group. The company plans to raise prices in the industrial division in the second half of the year, in order to pass on the added costs, which – coupled with an oversupply of commodities, as well as the falling oil price –should mean Fiberweb's full-year results are in line with expectations.

The company appears well positioned going forwards, given the global reach of the business and the diverse uses for its fabric products. The shares currently trade on P/E ratio of just over 6x earnings, and with a dividend in excess of 6 per cent, Fiberweb looks an interesting proposition.

Fiberweb

60.5p -0.5p

Scotsman says BUY

• 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.

BROKER SNAPS

Diageo

1,246p +18p

Broker says BUY

AHEAD of next month's full-year results from Diageo, RBS Equities has reiterated its "buy" recommendation on Scotland's biggest whisky producer. The broker added: "Our 'buy' case sees Diageo moving into the top tier of global consumer goods companies and establishing a premium rating."

Yell

6.48p -1.01p

Broker says SELL

YELL'S interim management statement was "yet another Groundhog day for shareholders" according to Prime Markets. Head of dealing Richard Curr said: "Yell should now be sold down to early July lower resistance at 3.58p. The company is saddled with a gargantuan net debt millstone of 2.7 billion."