5 Opportunities For The Week Ahead

Published in Investing on 10 August 2012

... include Standard Life (LSE: SL.) and Balfour Beatty (LSE: BBY).

Next week is again dominated mainly by interim results from companies in the FTSE 100 (UKX) and other London indices.

And it's an interesting mix, including some shares that I think look like clear bargains. Here are five that you might like to dig into before the results are released:

Michael Page

Monday brings interim results from Michael Page International (LSE: MPI), and while the recruitment specialist is interesting in its own right, the business offers a useful barometer of the economy in general.

Michael Page has already recovered its profits to some extent, after they crashed to almost nothing in 2009. At its December 2011 year-end, the firm recorded a pre-tax profit of £86 million. Meanwhile, July's trading update told us to expect profits pretty flat, with exchange rates the only thing that could make a difference.

Full-year results are expected to be in line with market estimates, with the 380p shares on a forward price to earnings ratio (P/E) of a stretching 25. Not one I'd buy now, but a good mirror on business prospects to watch.

Standard Life

Standard Life's (LSE: SL) interim figures are due on Tuesday, and they should be pretty strong, with decent growth in earnings and dividends forecast for the full year. Standard Life, which offers life insurance, pensions and savings products, is at less risk than the general insurers that cover sinking ships and tsunami damage and the like, but Standard Life's profits have still been volatile, as they often are in the industry.

What I like about Standard Life is its dividends, which have been lifted steadily year-on-year. Forecasts for the year to December 2012 put the 256p shares on a relatively high P/E of 15, but there's a 5.7% dividend yield expected. And the figures for 2013 are 13 and 6.1% respectively.

John Menzies

John Menzies (LSE: MNZS) also reports its interims on Tuesday, and it's quite an unusual company. In fact, it's effectively two companies in one, operating separate distribution and aviation services businesses. That would normally make me cautious, as I prefer businesses that stick to doing what they do best -- but Menzies is pretty good at both of its trades.

In fact, from the 2008 dip, we've seen steadily rising profits, and since dividend were resumed in 2010, those profits have been rising strongly. The shares currently stand at 623p, which puts them on a forward P/E of just 8.7, falling to 8.4 for 2013, and forecasts suggest a dividend yield of about 4%.

July's trading update told us that the group's full-year results were expected to be in line with expectations, so I think we can be fairly confident about next week's statement.

Anglo Pacific

Anglo Pacific Group (LSE: APF) concludes a trio for Tuesday, with interim results due. I mentioned Anglo Pacific a month ago, when I took a look at the mining sector, and the shares have slipped back and then recovered since then, to stand at 249p today.

Anglo Pacific owns mining resources and leases them out, taking royalties rather than facing all of the operating risks itself, and I do think the share is worth considering as a way to profit from a commodities recovery that is looking increasingly likely.

The uncertainty, though, is that current forecasts suggest a tough 2012 with earnings falling (and at the first-quarter stage royalties were well down on the previous year), and put the shares on a forward P/E of 18, which is above the FTSE's long term average of around 14. It looks like the current valuation is based on a longer-term view -- and there's nothing wrong with that.

Balfour Beatty

Infrastructure specialist Balfour Beatty (LSE: BBY) will report interims on Wednesday, and we should hopefully see a boost this year and next from the construction industry that is showing signs of recovery.

Last month's trading update suggested a steady year in line with expectations, which should mean a decent rise in earnings and a lifting of the dividend.

With the shares at 290p, current forecasts are predicting a dividend yield of 5.1% this year and 5.4% next. Even though the shares have already gained 35% since their pre-Christmas low, they're still only on a lowly P/E of 8.1 for this year, falling to 7.7 on 2013 forecasts.

Some oilies, too...

We also have a handful of oilies reporting half-time results next week, with Petrofac (LSE: PFC) on Monday, and Dragon Oil (LSE: DGO) and JKX Oil & Gas (LSE: JKX) on Tuesday.

Indeed, if oil and gas is the sector for you, the latest Motley Fool report, "How To Unearth Great Oil & Gas Shares" should offer you some valuable help. Click here to get your personal copy while it's free.

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Further Motley Fool investment opportunities:

> Alan Oscroft does not own any shares mentioned in this article

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