The Tesco (LSE: TSCO) share price has risen about 10% over the last month. This sounds impressive. However, the FTSE 100 index has jumped 9.9% over the same period. So, when put into context with the footsie, the supermarket’s shares no longer appear to be market-beating.

Looking further back over five years, it appears that the only time Tesco shares have outperformed the FTSE 100 is through the recent coronavirus period. This is no surprise. During this period, many companies have had to stop operating but our need for food doesn’t go away. So, it’s likely all grocers will benefit, at least in the short term.

But is Tesco worth buying for the longer term?

Tesco share price leaps 4% on dividend 

Of Tesco’s recent 10% price jump, 4% was due to news that the grocer will reward its shareholders by paying a dividend. Currently yielding around 2.91%, it’s attractive for some but almost half that of rival Sainsbury, now at 5.33%.  

The news of the dividend raised some eyebrows. Tesco has generated pre-tax profits of £1.3bn over the 12 month period leading up to February 2020. But CEO Dave Lewis defended the decision by highlighting the chain’s need for capital to finance hiring new staff and its growing supply and distribution activities.

Indeed, Tesco may have to pay an estimated £925m to keep customers happy. Such large amounts may begin to undermine recent share price performance in the long run. The next two months’ revenue figures could help to show whether Tesco’s March boom is sustainable. 

Tesco is said to be a leader in its field. Moreover, it’s had a good recovery under its new CEO since the accounting scandals and profit warnings of 2014. The company has made a name for itself with online shopping and has a well-established platform. However, its competitors are catching up and I’m struggling to see how the grocer will maintain its leading position. 

Morrisons is growing its market share 

One such rival is FTSE 100 grocer Morrisons (LSE: MRW).

Morrisons is very much the smallest of the big four grocers. Its share price has been disappointing but there are many reasons to be optimistic about the future. 

For starters, Morrisons is expanding. Recent agreements with McColls and Amazon are generating new customers. This is giving more competition to the bigger grocery chains, and in particular, Tesco Metro and Sainsburys Local. Amazon Prime customers can now stock up on Morrisons groceries for same-day delivery. I don’t think any other online food retailer offers this service.  

Morrisons profit margins are similar to its peers. However, some analysts believe the smaller supermarket to have a more efficient cost structure. This bodes well for the future as coronavirus-induced pressures on logistics will be expensive. It will also help having a stronger balance sheet and no notable pension deficit to fund.

At 3.69%, Morrison’s dividend yield is better than Tesco. The company has a history of well covered and growing dividends, making it attractive for income investors. And some analysts expect Morrisons business model to take off, growing its share price. This makes it a good choice for value investors too.    

As the FTSE 100 recovers from the stock market crash, it may leave the Tesco share price behind. But I think Morrisons is better placed to go with it.

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Rachael FitzGerald-Finch holds shares in Morrisons. The Motley Fool UK has recommended Tesco. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

With that in mind, here are two companies which appear to offer a potent mix of high yields and dividend growth. As such, they could provide inflation-beating returns over a sustained period.

Impressive outlook

Reporting on Thursday was designer, manufacturer and seller of fantasy miniatures Games Workshop (LSE: GAW). The company’s share price increased by 9% in response to what was a relatively short update. It stated that sales have continued to be strong since the previous announcement in September. Due to the high operational gearing of the business, any movement in sales is directly reflected in profitability. As such, the company’s profits have been well ahead of the same period from the prior year.

In fact, the company is forecast to report a rise in its bottom line of 50% in the current year. This would be an impressive performance given the uncertainty which surrounds the UK economy at the present time. Consumer confidence is deteriorating, but Games Workshop does not appear to be feeling any ill-effects.

With a price-to-earnings growth (PEG) ratio of just 0.3, the company appears to have capital growth potential. However, it is its income prospects which may hold the greatest appeal to investors. Its dividends are covered 1.4 times by profit, which suggests that they could rise rapidly over the medium term. This could increase the dividend yield of 4.6% at a fast pace in future years. As such, now could be the perfect time to buy it.

Improving outlook

Also offering high dividend growth potential is convenience store operator McColl’s (LSE: MCLS). The company is expected to record significantly improved performance over the next couple of years, with its bottom line due to rise by 8% this year and by a further 29% next year.

This could help to boost its dividend growth rate. Currently, the company has a dividend yield of 3.8%. However, dividends are set to be covered more than twice in the next financial year. This suggests that they could rise at a rapid rate in future years – especially since the convenience store sector is continuing to see relatively strong demand.

As well as its dividend outlook, McColl’s also has investment potential because of its valuation. Despite strong earnings growth forecasts, it trades on a PEG ratio of just 0.4. This suggests that it could post high share price returns even after it has risen by over 50% in the last year. Certainly, consumer confidence is weak as Brexit talks continue. But with a wide margin of safety and a bright income future, the company seems to be a strong buy right now.

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Peter Stephens owns shares of McColl's. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Devro’s rally is due to the company recovering from a series of profit warnings that hit late last year due to cost overruns and production problems with its two new factories in China and the USA. These problems briefly ignited fears amongst investors that the company would breach its debt covenants, but thankfully the company is back on track.

In the half year to June, revenue rose 11% year-on-year (y/y) to £125.2m and underlying EBITDA leapt 16.7% to £30.8m. The company is still having teething problems with its US factory but with that facility up and running and the Chinese factory targeting full capacity by year-end, I expect sales and profits to continue growing rapidly.

With start-up costs for the new factories decreasingly rapidly, the company’s balance sheet is also much improved with the net debt/EBITDA ratio down to 2.4 times at the end of June. This has led analysts to forecast the company’s first dividend hike in over four years with a 9.02p full-year dividend pencilled in. This is a very realistic option as the interim payout of 2.7p was well-covered by rapidly rising statutory earnings per share of 5.5p for the period.  

The global market for collagen casings continues to grow in the mid-single-digits every year and Devro’s brand new factories will allow it to gain share in this growing market by offering customers more complicated products than competitors and at a better price. With good growth prospects, a turnaround that’s shaping up to be very robust and a great dividend yield, I reckon Devro is still a great stock to own for the long term.

A local option offering up a great dividend

Shares of convenience store operator McColl’s (LSE: MCLS) have also been on a tear with their value up over 60% in the past year. Yet even after rising so rapidly they still look very attractive to me at 16.6 times forward earnings with a 3.74% dividend yield.

The key for McColl’s has been expansion through acquiring 298 Co-op convenience outlets, plus steady and growing like-for-like sales (LFL) due to changing consumer habits, and a shift towards offering fresh food at its locations. In Q3, 0.7% LFL growth and the addition of the new stores led to revenue rising 31.1% y/y.

Looking ahead, there’s solid potential to further boost LFL sales growth by refurbishing tired newsagents into bright, cheery local food and convenience outlets. In Q3, sales from newly acquired and refurbished shops rose 2.6% on a LFL basis, which bodes well for the rest of the estate as the renovation programme is expanded.  

This programme isn’t cheap but group profitability is still rising with EBITDA up to £16.5m in H1. With net debt at the end of H1 up to £110.8m due to acquisition costs, the company’s dividend will probably remain around its current 10.2p per year for the time being. But with top line and bottom line growth, a decent valuation and an attractive yield, I still think McColl’s is worth considering.

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Ian Pierce has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Devro. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

But this pause for breath is hardly surprising given the company’s stratospheric share price ascent — McColl’s has seen its stock value swell by a third during the past two months alone.

Thanks to the purchase of close to 300 convenience stores from The Co-Operative Group last year, the Brentwood-based business saw total sales rattle 31.1% higher during the 13 weeks to August 27, it announced today. Revenues were up 15.8% in the year to date.

Celebrating the result, chief executive Jonathan Miller said: “The 298 newly integrated convenience stores have driven strong revenue growth, and our existing estate has continued to perform well, delivering a second consecutive quarter of positive like-for-like sales growth.”

Like-for-like sales growth in the quarter was much more muted by comparison, having said that. McColl’s saw such sales edge just 0.7% higher during the period, with revenues rising 0.7% in its supermarkets and 0.3% across its newsagents.

Looking ahead, Miller added: “We continue to look at opportunities to further enhance organic growth, and are pleased by the progress we are making with our convenience store refresh trial.

“Customer feedback has been positive and the early performance has been very strong, with significant sales uplifts and increased participation in key convenience categories, including fresh and chilled food.”

Still too risky

City brokers expect McColl’s to record an 8% earnings uplift in the year ending November 2017, and to follow this with a 29% advance in the following 12-month period.

And current projections leave the business dealing on what would appear very attractive valuations. Indeed, a forward P/E ratio of 15.3 times is near enough on the widely-considered value benchmark of 15 times.

For me, however, this is not low enough to tempt me to invest right now.

While sales across the country’s convenience stores may be outperforming the larger stores owned by the likes of Tesco and Sainsbury’s, such stores are not immune to the rising competitive pressures in the British grocery industry. And the environment is becoming ever-tougher as the industry’s big players boost their own positions in the convenience segment, and the likes of Aldi and Lidl continue on their aggressive expansion programmes.

With sterling’s decline also pushing up costs, and rising inflation heaping extra pressure on shoppers’ spending power, I reckon the difficulties McColl’s faces to keep sales on an upward tilt are too great right now.

Media mammoth making noise

I believe that those seeking a genuinely-hot growth stock should check out Future (LSE: FUTR) instead.

The number crunchers believe Future will see earnings tear through the roof in 2017, with current estimates suggesting a whopping 153% advance in 2017. And the Bath business is expected to follow this with a 35% rise next year.

While a forward P/E ratio of 21.1 times may look toppy on paper, Future’s corresponding PEG multiple of 0.1 indicates that it’s actually a brilliant bargain given its projected growth trajectory.

Indeed, unlike McColl’s, I reckon the media giant is worthy of serious consideration right now. It completed the purchase of the Home Interest Division from Centaur Media just this month and its stunning progress around the globe and potential for more earnings-driving acquisitions should add to its appeal. 

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Treading water

Despite today’s interim results being in “in line with market expectations,” one company that stands out as a value trap more than any other is, in my opinion, Debenhams (LSE: DEB). After all, those expectations weren’t exactly sky high.

In the six months to early March, gross transaction values rose 2.5% to just under £1.68bn with like-for-like growth in the UK increasing 0.5%. Group EBITDA fell 2.5% to £149.1m with performance in the UK impacted by increases in rent and the National Living Wage. Overall profit before tax slumped 6.4% to £87.8m. 

Perhaps the most interesting part of today’s release was the announcement of a new strategy, Debenhams Redesigned. The £679m cap now aims to deliver growth by making itself a destination for “Social Shopping“, based on the idea that the leisure experience — and mobile use — is now an important part of the consumer experience. 

Elsewhere, Debenhams plans to increase the number of staff in customer-facing roles, declutter its stores and replenish stock at a faster rate. One distribution centre and 10 warehousing facilities have been earmarked for closure, with 10 UK stores also likely to be shut over the next five years.  

While CEO Sergio Bucher states that Debenhams prospects are dependent on it delivering “differentiated and distinctive brands, services and experiences,” I think it will struggle to do this in the cut-throat retail environment. This, combined with the fact that additional capex of £20m (on top of the current £130m) will be needed between FY2018 and FY2020 to upgrade its mobile systems, supply chain and store estate makes me suspect that the shares won’t recover any time soon.

Right now, shares in Debenhams change hands for nine times earnings and come with a 6.4% yield, covered almost twice by profits. With shares dipping over 3% in early trading however, the market seems as unconvinced by the new strategy as I am.

Safer bet?

As Debenhams continues to struggle, convenience store operator McColl’s Retail (LSE: MCLS) looks a far better value proposition.

Back in February, the Brentwood-based small-cap reported a 1.9% rise in total revenue to just over £950m over 2016 — the company’s sixth consecutive year of sales growth. Gross margin also rose slightly to 25.1% thanks to a bigger convenience mix, including fresh food and food-to-go (the latter delivering double-digit like-for-like growth).

More recently, total like for like sales were down 1.3% in Q1, giving McColls its fourth consecutive quarter of improvement. The company also reported “no discernible impact on customer behaviour” from the EU referendum.

While these numbers won’t set pulses racing, it’s McColl’s growth strategy — including the acquisition and integration of 298 former Co-op stores — that make me bullish on its shares. If all goes to plan, this could lead to net profits almost doubling by the end of 2018.

Like Debenhams, McColl’s stock trades on an appealing valuation (11.5 times 2017 earnings) and offers a high yield (5.2%). Unlike Debenhams, it’s forecast to post earnings per share growth of 16% in 2017, rising to 30% in 2018. Assuming it can hit these targets, I think the 21% rise in the company’s shares since last April could be just the start of good things to come.

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Paul Summers has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Today’s full-year trading update from McColl’s shows that it’s making good progress in a challenging market. Although revenue increased by 1.9% for the full year, on a like-for-like (LFL) basis it fell by the same amount. However, recently acquired and converted stores fared much better, recording LFL sales growth of 0.8%. This shows that if the company can roll out its store conversion programme and successfully integrate the 298 stores acquired from the Co-op, its top-line performance could improve.

In fact, in the new financial year the convenience store operator is expected to record a rise in earnings of 18%. This improved performance hasn’t yet been factored-in to the company’s valuation, since it has a price-to-earnings growth (PEG) ratio of just 0.6. As such, it has a wide margin of safety that could mean that even if Brexit causes a difficult period for the retail sector, McColl’s could significantly outperform its peers.

Furthermore, a yield of 5.8% is well-covered by profit. In the current year earnings are expected to cover shareholder payouts 1.7 times, which indicates that there’s room for dividend growth even if profit growth stalls. As such, it seems unlikely that McColl’s dividend will come under threat by Brexit, although its growth rate may be hurt somewhat over the medium term. Still, with such a high yield it remains a top notch income play.

Growth opportunity?

One retailer that lacks appeal at the present time is Sports Direct (LSE: SPS). Although its value proposition may prove popular if Brexit causes a squeeze on disposable incomes, Sports Direct continues to offer lacklustre growth forecasts. In the current year, its bottom line is due to fall by 45%. This could severely damage investor sentiment and send the company’s shares downwards.

While Sports Direct is expected to return to growth next year, its PEG ratio of two indicates that its improved outlook is already adequately priced-in. It also lacks a dividend, so it’s difficult to see how its share price will be positively catalysed in future.

As such, at a time when the retail sector is enduring a tough period that could worsen due to Brexit, it seems logical to buy McColl’s and avoid Sports Direct. The former’s dividend outlook is highly positive, although it’s as much a growth opportunity as an income one as its acquisition programme continues.

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Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Sports Direct International. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

McColl’s saw total sales edge 1.8% higher during the 13 weeks to 28 August, a result driven by its ambitious investment strategy. Chief executive Jonathan Miller confirmed that results for the fiscal year remain in line with the board’s expectations. He added: “We remain focused on the key elements of our clear strategy: to increase market share, grow our convenience product range and deliver great customer service, which we are confident will cement our position as a leading neighbourhood retailer.”

McColl’s is on track to reach the 1,000-store landmark by the end of the calendar year, the firm noted — it currently has 953 convenience outlets in operation following the acquisition of 36 stores in the last quarter.

McColl’s announced the purchase of 298 stores from The Co-operative Group in July for £117m, a deal the firm has described as “transformational” and which is expected to complete in 2017.

Underlying problems

But a fall in like-for-like sales suggested that all is not peachy over at McColl’s. The retailer saw takings at existing stores dip 2% in the year-to-date, with sales in its newsagents and standard convenience stores diving 3.7% in the period.

McColl’s isn’t immune to the huge competitive pressures battering the grocery sector, a phenomenon that is affecting small and large operators alike.

FTSE 100 colossus Tesco (LSE: TSCO) has been fighting a losing battle for years thanks to the rapid emergence of cut-price chains Aldi and Lidl. The Cheshunt business saw total sales dip again during the three months to 16 August, according to Kantar Worldpanel, this time by 0.4%.

And the price wars are likely to get ever-more-bloody in the weeks and months ahead should Britain lurches into recession, as many have predicted, and household incomes come under intensified attack.

Besides, the ongoing expansion of its rivals — from the aforementioned German chains to upmarket operators like Marks & Spencer — both online and on terra firma is likely to keep earnings at Tesco on the back foot.

So which should you buy?

These problems make Tesco a risk too far for canny stock selectors, in my opinion, particularly given its huge P/E rating of 26.6 times for the period to February 2016. This is at serious odds with the established benchmark of 10 times for stocks with patchy earnings outlooks, and leaves the business in danger of a huge share price retracement.

By comparison, McColl’s deals on a far more delectable P/E ratio of 10.8 times for the year to November 2016. And an estimated 10.2p per share dividend yields a fantastic 6.1%.

While both firms carry their share of risk, I reckon McColl’s is the superior stock for those seeking exposure to the British grocery segment.

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The power equipment provider — which collapsed to four-year lows last week — advised that total revenues leapt 15% during January-June, while rental revenues advanced 13% from the year-ago period.

Lavendon therefore “remains confident of delivering its expectations for the full year,” it advised, and with good reason: market share grabs are helping to drive sales higher in the UK, Lavendon’s largest single market.

Meanwhile, investors fearing a Brexit hangover can take heart from Lavendon’s hefty overseas exposure. The Middle East and Continental Europe are responsible for 29% and 27% of group revenues respectively, and sales in these regions continued to climb in the first half.

I believe a forward P/E rating of 6.8 times makes Lavendon an attractive stock selection looking ahead.

Medical marvel

Healthcare giant BTG (LSE: BTG) hasn’t fared so well in Thursday business however, the company dealing 3% lower despite a promising trading update.

But I view this as nothing more than profit-booking after recent strength — BTG had seen its share price explode 10% since the referendum as cautious investors piled-in to the relative safety of medical stocks.

BTG advised that “overall performance and trading since April 1st are in line with expectations,” adding that revenues guidance of £485m-£515m for the full-year is unchanged.

However, the firm advised that this is based on an exchange rate of £1/$1.45. Should sterling average £1/$1.35 for the remainder of 2016, revenues are likely to clock in at £510m-£540m, BTG said. However, higher R&D and other costs and currency hedging contracts would offset these gains.

While BTG changes hands on a P/E rating of 29.1 times for 2016, I believe the firm’s splendid product pipeline fully merits such a premium, and I expect earnings to surge as drugs demand rises in the coming years.

Shop around

Convenience store McColl’s (LSE: MCLS) has seen its share price jump 16% following hot acquisition news late on Thursday.

The retail play has snapped up 298 shops from The Co-operative Group for £117m in cash, it advised. McColl’s will raise £13.1m through a share placing in order to finance the deal.

Chief executive Jonathan Miller said: “This opportunity substantially accelerates our growth strategy and expands our neighbourhood presence for the benefit of our customers.” It adds to the 933 stores already McColl’s operates across the country.

While the convenience sector is seen as a hot growth channel for the grocery sector, question marks remain over whether recent success here may have peaked. Indeed, the Local Data Company (LDC) notes that 228 towns and cities reported a fall in the number of such outlets in 2015.

The impact of Brexit on consumer spending power could also pressure takings at McColl’s looking further ahead, particularly if the supermarket price wars heat up.

So while McColl’s deals on a cheap forward P/E rating of 9.9 times, I reckon growing competition in this marketplace makes the firm a risk too far at present.

The post Should you buy McColl’s Retail Group plc, Lavendon Group plc and BTG plc following recent news? appeared first on The Motley Fool UK.

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Clearly, this would cause investor sentiment to improve in the short run and evidence of this can be seen in the FTSE 100’s rise of 2% today at the time of writing.

As a bank that’s UK-focused and therefore highly dependent on the performance of the UK economy, a vote to remain should be good news for RBS’s share price. That’s not necessarily because a vote to stay in the EU would be better in the long run for the UK economy, but rather because it would mean less uncertainty in the short run. And with investors being averse to uncertainty, share prices for UK-focused companies such as RBS could benefit.

With RBS having a forward price-to-earnings (P/E) ratio of just 10.9, it appears to offer a relatively wide margin of safety. As such, and while its shares are likely to be volatile in the short run, it seems to be a sound buy for long-term investors.

Room for more gains

Also rising today are shares in convenience store operator McColl’s (LSE: MCLS). It’s up by around 6% despite no significant news flow being released by the business. As with RBS, a surge in support for the Remain campaign is most likely responsible for McColl’s rising share price and with the company’s valuation being exceptionally low, further gains could lie ahead over the medium-to-long term.

For example, McColl’s trades on a P/E ratio of just 8.7 and while the company’s bottom line is due to fall by 2% this year, it’s expected to return to positive earnings growth next year. Such a low valuation indicates an upward rerating is on the cards and even if that takes some time to be achieved, McColl’s has a top-notch dividend to keep its investors’ returns ticking over in the meantime.

In fact, McColl’s currently yields a whopping 7.6% from a dividend that’s covered 1.5 times by profit. While dividend growth may be somewhat lacklustre over the medium term, such a high yield has huge appeal for income-seeking investors.

Shares take a tumble

Meanwhile, shares in Circassia Pharmaceuticals (LSE: CIR) have tumbled by around 58% today after it released disappointing results from a phase III cat allergy study. Circassia found that there was little difference in the results between its treatment and a placebo, which it says is both surprising and disappointing.

With there being high hopes among investors for the potential treatment, it’s of little wonder that the company’s shares have fallen so heavily today. And in the short run at least, there could be further for them to fall.

Of course, Circassia will now review the full dataset and focus on its broader potential as a business. And in the long run, the company has the potential to make a strong comeback. However, while its shares are so volatile, it may be prudent to invest elsewhere.

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With McColl’s trading on a price-to-earnings (P/E) ratio of just 10.9, it appears to offer excellent value for money. As such, a bidder could buy the company with a significant margin of safety, thereby increasing the appeal of McColl’s at the present time.

Path to growth

Similarly, Rolls-Royce (LSE: RR) could also be a bid target, with the defence and aerospace company having a very lucrative operation despite recent challenges. Under its new management team, Rolls-Royce has a clear path towards growth and with its bottom line due to rise by 32% next year, it appears to be on track to deliver improved performance.

Furthermore, with the US economy moving from strength to strength, the outlook for the wider defence sector is rapidly improving. This could convince a potential suitor to acquire Rolls-Royce ahead of what could be a purple patch for the industry.

Value for money

Also in the midst of a turnaround is Imagination Technologies (LSE: IMG). It was in talks recently with Apple concerning a potential takeover and while they didn’t come to fruition, Imagination Technologies remains cheap and the company also has a bright future.

Under a new leadership team, it’s possible for the company to turn its financial performance around. Like Rolls-Royce, strong earnings growth is forecast for Imagination Technologies next year, with the company expected to grow its bottom line by 40%. And with it trading on a PEG ratio of just 0.6, it seems to offer excellent value for money, thereby making it a potential bid target for a sector peer.

Watch and wait

Meanwhile, Monitise (LSE: MONI) may prove to have less of a chance of being bought than McColl’s, Rolls-Royce and Imagination Technologies. That’s at least partly because the mobile payments solutions provider is struggling to turn a great product into a great business, with Monitise still being in the red, despite winning major clients and having a top-notch product.

Looking ahead, the payment technology space is likely to change at a rapid rate and while Monitise’s offering may be popular now, there’s no guarantee that will be the case in the coming years. As such, potential suitors may develop their own in-house capabilities or else look to partner with other companies, given the relatively high capital demands of such an offering. Therefore, while Monitise could turn its fortunes around, it seems to be a stock to watch rather than buy for potential acquirers and investors alike.

The post Are Takeovers Imminent For Monitise Plc, Rolls-Royce Holding PLC, Imagination Technologies Group plc And McColl’s Retail Group PLC? appeared first on The Motley Fool UK.

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• As the stock starts to fall, is it time to consider selling Rolls-Royce shares?

Peter Stephens has no position in any shares mentioned. The Motley Fool UK owns shares of Imagination Technologies and Monitise. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.