We round up the Sunday newspaper share tips. This week, Midas takes a look at mining firm Bluejay Mining, the Sunday Telegraph eyes Playtech and the Sunday Times considers whether it’s time to sell shares in online estate agent Purplebricks.
Bluejay Mining’s shares are 17p and deserve to rise considerably as the Greenland site moves into commercial production
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Rod McIllree has been working in Greenland for 11 years, the last three of which have been spent developing one of the largest and highest-grade ilmenite projects in the world with his company Bluejay Mining.
It’s listed on AIM, shares are 17p and deserve to rise considerably as the Greenland site moves into commercial production, says Midas.
The firm currently operates along almost 20 miles of coastline in north-west Greenland, but the entire site, known as Pituffik, covers 60 square miles so there is considerable potential for expansion.
Local infrastructure is robust as well, so the ilmenite, which is used to make titanium dioxide, can be transported to ports and shipped overseas with relative ease.
Buyers are already showing interest and the company expects to send out samples to prospective customers this year, with production starting at the end of 2018. Analysts expect production of about 100,000 tons next year, rising to more than 300,000 by 2020.
Bluejay is focused on the Pituffik project, but it owns licences elsewhere in Greenland and it has a large copper site in Finland too, which may well be sold to generate extra cash.
Midas verdict: Buy.
Teddy Sagi, the colourful billionaire behind Playtech, is intent on diversifying his fortune and recently sold a tranche of shares in the firm, says James Ashton in this week’s Questor for the Sunday Telegraph.
In his sights he has a number of property interests and flexible working spaces and his £36.5m sale raised £337m and left him with a 6.3 per cent stake in the businesses he founded in 1999.
Playtech shares are close to an all-time high and the firm is valued at £3bn and Sagi now remains an adviser to the firm.
The company provides the software and services behind may online gambling sites and most of its income comes from powering online casinos.
By the end of the year it’s estimated Playtech will be at on €467m of cash, rising to €722m by the end of 2019 leaving plenty of room for acquisitions to boost its technological expertise, says Ashton.
The shares are trading at 12 times next year’s forecast earnings and Ashton says they are worth buying.
Purplebricks makes money by charging a set fee to sellers, whether they sell or not, and you’ll be charged extra for viewings
The online estate agency Purplebricks has taken off like a rocket this year, but like all estate agents you have to take some things on trust, says John Collingridge in this week’s Inside the City column for the Sunday Times.
Despite it having prominent backing with Neil Woodfood owning 27 per cent, and its shares soaring to 444p, Collingridge says it won’t say how many homes it actually sells.
It makes money by charging a set fee to sellers, whether they sell or not, and you’ll be charged extra for viewings.
If you defer the fee until after the sale, the debt is sold to Close Brothers and you are obliged to use eZie Conveyancing unless you pay a break fee.
Some staff have reduced their stakes in the firm and Collingridge says maybe they’ve got the right idea.