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Wednesday, 19th November 2008

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Soaring cost of energy makes FTSE 100 Drax a buy



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Published Date: 16 June 2008
Sunday Telegraph

Drax, the operator of the largest coal-fired power station in Western Europe, has seen its profit margins swelled by soaring energy prices.

The Yorkshire firm is soon to rejoin the FTSE 100 Index and could enjoy an extended stay in the top flight with few experts predicting falling electricity prices any time soon. The shares are rated a buy at 785.5p.

Domino's Pizza has seen strong s
ales growth this year and is confident over prospects in spite of an economic downturn.

The company is retaining its appeal among the less well-off and growing sales among bigger spenders who are trading down from eating out.

Domino's is passing on higher food costs to customers and franchisees and could be in line for analyst upgrades. Investors should hold on at 213p. Wealth management firm Rensburg Sheppards maintained a "cautiously positive" view in results although a tougher economic climate means its wealthy clients have less to spend on investments. But the company's dividend payments are well-covered and the group is looking for small acquisitions. Rensburg looks cheap compared to its peers at 565p. Buy.

Mail on Sunday

Iron ore firm Aricom's mines in eastern Russia are close to China, giving it an advantage over rivals in satisfying the Chinese thirst for raw materials.

Aricom is expected to announce the first sales of iron from its Russian mines this week. With demand looking strong and the possibility of takeover interest, the shares are rated a buy at 85.5p.



The full article contains 274 words and appears in n/a newspaper.
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  • Last Updated: 16 June 2008 8:20 AM
  • Source: n/a
  • Location: Yorkshire
 
 

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