One to watch: Swedish Match

Swedish Match makes cigars, chewing tobacco, snuff, lighters and, of course, matches. It also makes "snus", a moist powder tobacco product, which is a variant of dry snuff and is consumed by placing a small amount underneath the upper lip. This product is extremely popular in Sweden, where about 20 per cent of men are regular users; consumption in Norway has also risen rapidly.

While sale of snus was banned in the European Union in 1992, Sweden and Norway were granted exemptions when they took up membership. Sweden is campaigning for the dropping of the law that prevents the country from exporting snus in the EU. Outside of Sweden, snus is gaining popularity in the US, where Swedish Match is the largest player in the mature, but declining chewing tobacco market.

While Imperial Tobacco has expanded its capacity in Sweden and competition in the US remains fierce, the company's loyal customers in its home market should continue to help to drive sales and maintain market share. The shares are maybe slightly expensive relative to the European tobacco sector, but the growth opportunities seem encouraging.

Swedish Match

SKr209.6 +SKr0.5

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

Goals Soccer Centres

127p +2p

Broker says BUY

Ahead of first-half results from Goals Soccer Centres on 1 July, Numis reiterated its "buy" rating on the East Kilbride-based operator of five-a-side football pitches. But Numis added: "After the late shock of severe snowfall in December, we doubt management will encourage any upward movement in forecasts."

274.1p +1.2p

Broker says BUY

After last month's decision by private equity group 3i to raise its dividend, Andrew Gibson, head of research at Galvan, yesterday issued a "buy" rating. He said: "The hike in the 3i dividend is an important development as it signals a new level of confidence from management over prospects for the group."