One to Watch

TERRACE Hill Group is a property development and investment company quoted on Aim. It has offices in London, the north-east, the south-west and Scotland.

It is particularly prominent in the food sector, with close associations with the likes of Sainsbury's, Tesco, Asda and Morrisons. It is also extensively involved in office development. There is a residential unit, owning 175 acres of land in the central belt of Scotland and, in Ayrshire, former brickworks now being redeveloped as houses.

There are signs that commercial property markets are beginning to revive. Rents in London are firming and there has been much activity on the transaction front over the past six months.

Nevertheless, there are some issues with Terrace Hill. The freemarket float is pretty tight. Moreover, the company passed its dividend last year and is unlikely to pay a distribution in 2010. On the other hand, the stock stands at an appreciable discount to its underlying net asset value, and its close allegiances within the food sector are supportive.

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 company for your portfolio.

Reckitt Benckiser

3,655p +85p

Broker says BUY

ANALYSTS at Evolution are bullish on the household products giant, noting that even zero growth at its Fabric Care arm and like-for-like expansion in Dishwash, the business should outperform full-year guidance of 5 per cent growth in Q1. "Sensible M&A could add further value," the broker added.

Regal Petroleum

51p -2.75p

Broker says BUY

FOLLOWING annual results from Regal Petroleum, analysts at stockbroker Seymour Pierce have reiterated their "buy" stance on the group's shares. They said that despite the energy explorer posting a net loss of $9.8 million (6.4m) and some operational challenges "we continue to believe in the strong reserve potential at Regal".