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Royal Bank of Scotland shares have been hammered by the crisis but could be a good buy in the long-term.

The 84 per cent state-owned bank will be loss-making until at least 2011 and shares do not pay a dividend, but turnaround plans are ahead of schedule and parts of the “core” bank are performing well. Buy at 37.5p.

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Lloyds Banking Group’s results last week were better than expected and the company – which is 41 per cent owned by the taxpayer – looks on the road to recovery. Lloyds expects stronger margins this year and the shares could be due an upgrade. Buy at 52.5p.

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Country Life and Cathedral City cheese firm Dairy Crest has enjoyed good sales of its main brands and its strong cash flow is allowing it to reduce debt more quickly than expected.

Recent share falls mean the firm looks underpriced and the stock is tipped at 360.5p.