One to watch: Halfords

In addition to its four main areas – car maintenance, car enhancement, leisure and travel – the group broadened its offerings through the acquisition of 224 Nationwide Autocentres in 2010.

On valuation grounds the shares look compelling, with the added attraction of a yield in excess of 5.5 per cent. The board's decision to recommend a 10 per cent increase in Halford's full-year dividend reaffirms its progressive dividend policy and confidence going forwards.

On a personal note, a recent visit to a local Halfords to replace a stolen aerial demonstrated the excellent customer service and helpfulness of the staff, which should go a long way towards helping to retain customers and ensure repeat business.

The near-term headwinds must be recognised, however, given the diversity of its product range, the strength of its balance sheet and good cashflow generation, this may be one that requires further consideration.

Halfords

396.4p +2p

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

British American Tobacco

2,649p -0.5p

Broker says BUY

RBS Equities thinks British American Tobacco is "in a sweet spot" and has upgraded its recommendation from "hold" to "buy". RBS added: "Our analysis suggests the outlook for global volumes is robust. Improved pricing should see underlying sales growth accelerate, even when volume trends improve."

Greene King

485.9p -4.4p

Broker says ADD

Greene King, the Suffolk-based brewer that owns the Belhaven brewery in Dunbar, will report its full-year results on 30 June. Numis thinks that the figures will be "at least in line with expectations", with the consensus pre-tax profit figure standing at 139.4 million, up from 123m in the year to 30 April, 2010.