Companies: AMO    DNO    FCAM    IMG   

Amidst Altium’s array of recommendations in the last month there were no less than six ‘top sells’. Fully listed semiconductor specialist Imagination Technologies, may be trading in line with expectations, but analyst Ian Robertson reckons the group has risen ‘too far’ and advises investors to take profits.

Elsewhere in the electronics sector, internet television (IPTV) set-top box maker Amino is branded as overvalued, despite recent falls. The company is getting ‘a fair proportion of what IPTV business there is, but it is far from being a mature industry or technology and we have doubts as to how Amino adds value’. In the printing sector, caution is advised at Domino Printing, where ‘the shares are overvalued given the relatively low revenue growth.’

In the financial arena the Altium team forecasts two years of profit decline for fund manager F&C Asset Management, as it ‘will lose £2.5 billion of institutional funds’ by the end of the third quarter and consequently may well experience ‘a vicious circle of departures of key managers and… contracts’. Analyst Martin Cross admits the 5.4 per cent yield offers a degree of compensation, but notes that other blue chips can do better. For instance Lloyds ‘yields one per cent more and is forecast to show six per cent EPS growth this year’.