Analysts say Boeing is a promising play for investors because of its impressive new family of aircraft, such as the Dreamliner. Jeff Topping / The National
Analysts say Boeing is a promising play for investors because of its impressive new family of aircraft, such as the Dreamliner. Jeff Topping / The National

In the news: Boost profits with the iPad and Dreamliners



The stock market has astonished everybody with a bright and positive start to what was predicted to be 12 months of fear and negativity.

Many private investors are more bullish than they were just a few months ago and will be looking for ways to play the next leg of the recovery.

Nothing is certain, of course. With the eurozone crisis still playing out and western governments still wondering how they will ever repay their debts, this could be another false dawn.

And if the oil price continues to spiral, or Israel attacks Iran, the recovery could quickly go into reverse.

Still, the future is looking a little bit brighter - and investors should be thankful for that.

We asked five global share analysts to name their preferred stock tips for the future. Here is where they recommend putting your money.

Boeing

Investors should book a flight with aircraft manufacturer Boeing, says Dan Dowding, the chief executive (Middle East and Asia) at IFAs Killik & Co in Dubai. "Boeing is one of the world's leading aerospace and defence companies. It already has a full order book because its production capacity is sold out for the next five or six years.

"In that time, it should build an incredible 3,500 aircraft worth US$273 billion [Dh1 trillion] in total."

Boeing is divided into two operating divisions: its commercial and defence arms.

Boeing Commercial Airplanes is developing an impressive new family of aircraft, including the 737 Max and 787 Dreamliner, Mr Dowding says. "It has refreshed its product line and ramped up its production of commercial airplanes. Demand is likely to remain strong, even if passenger growth slows, because many airlines will still want to replace older aircraft with more fuel-efficient versions. China alone needs an estimated 4,000 planes over the next 20 years."

Boeing Defense, Space & Security has a stable, well-diversified product portfolio and development programmes in high-growth areas such as unmanned and cyber-warfare.

"US defence budget cuts are a threat, but the market has already priced in a significant drop in military spending. And if the US does cut military spending, its allies in the Middle East and Asia may increase theirs as a result," Mr Dowding says.

Boeing generates plenty of cash and has plenty of scope to boost its profit margins.

Apple

Size isn't everything, but sometimes it can't be ignored.

Apple is now the biggest company in the world and deservedly so, says Rob Burgeman, the divisional director at Brewin Dolphin, the investment manager. "Some believe Apple is so dominant that it can only go downhill, but we believe it has plenty of scope to climb even higher."

Apple has a dominant market position in the segment that it created itself, the iPad, and this looks likely to be reinforced with the recent launch of the iPad 3, Mr Burgeman says.

"It has a relatively small share of the smartphone market at 25 per cent, but this is growing fast following the latest iPhone launch. And it has just 10 per cent of the PC market, so again, that allows plenty of scope for growth."

Apple is also rumoured to be launching a television set at the end of this year. "Who would bet against it revolutionising the TV marketplace in the same way that it has revolutionised other markets?"

The company has a ridiculously healthy balance sheet and has just started paying dividends. "Investors in Apple can now get a dividend yield of around 1.8 per cent a year."

Despite strong recent share-price growth, its shares still look relatively cheap, Mr Burgeman says.

A common way of working out whether a company is good value is to divide the share price by its company earnings to produce its price to earnings (P/E) ratio. A P/E of 15 is thought to represent fair value. "Apple is trading at a relatively cheap P/E ratio of 13.8. That looks very tempting to me."

Vodafone

Jeremy Batstone-Carr, at stockbrokers Charles Stanley & Co, is sceptical about the recent stock market fight back. "The market has been driven by central bankers loosening liquidity, but I don't think it can run much further. Western countries have massive debts and rapidly ageing populations, and will struggle to grow their way out of debt. Given all the problems, nobody should expect a stock market bonanza."

Mr Batstone-Carr prefers to invest in defensive stocks and plumps for Vodafone, the global mobile phone giant. "In what could be a low-growth future, you should look for companies generating lots of cash and paying attractive dividends. Vodafone is one of them. It is currently on a forecast dividend yield of 7.3 per cent a year. That's far better than you could get from any savings account."

Vodafone's share price has dipped slightly in recent months, so don't expect to see runaway capital growth. "Vodafone has enjoyed strong sales growth in emerging markets, notably India, but it is a cautious stock for these uncertain times."

Mr Batstone-Carr says not everybody shares his pessimistic outlook. "If you are more bullish and expect the global economy to continue recovering, you might invest in mining stock BHP Billiton. If China keeps growing, demand for commodities and national resources will remain high and BHP Billiton should reap the rewards. The stock also gives you exposure to the rising oil price, as do the oil majors such as BP, Exxon and Royal Dutch Shell."

Mr Batstone-Carr urges investors to play it safe right now. "There's an old stock market adage that you should 'sell in May and go away'. This could be a good year to do just that."

Pearson

Pearson is best known as the owner of London's Financial Times and Penguin, the book publisher. But its real value lies elsewhere, says James Griffin, the portfolio manager at Fidelity MoneyBuilder Growth, the investment fund. "Pearson is a global leader in the move to digital online education, which is being embraced in the US and, increasingly, emerging markets. It describes itself as 'the world's leading learning company' across 70 different countries and we believe it will be the dominant, long-term winner in this sector. Its education arm generates two thirds of the company's revenue."

Mr Griffin also recommends WPP, the global marketing, advertising and communications company. Although listed in the UK, it has a highly successful franchise in fast-growing emerging markets. "This has cushioned the impact of the slowdown since the financial crisis and now the company boasts exceptional long-term growth prospects."

PPR

In these cash-strapped times, a little luxury goes a long way, says Peter Kirkman, from JP Morgan Asset Management. "French multinational PPR has a global portfolio of luxury, sports and lifestyle brands that are distributed in 120 countries worldwide. It owns the Stella McCartney, Gucci and Puma brands and its recent earnings results beat analyst expectations, driven by luxury revenues."

In 2011, PPR saw its revenues rise 11 per cent and its recurring net income rise by an impressive 26 per cent. Investors should benefit from continued growth in emerging markets, particularly China, where consumers are hungry for established western brand names, Mr Kirkman says.

If PPR is a play on the increasingly confident emerging-market consumer, fashion retailer Guess? Inc should benefit from any recovery in consumer confidence in the West.

In the final quarter of 2011, its revenues increased by 3 per cent to a record $776 million. European sales fell slightly, but American sales rose 5 per cent and Asian revenues soared 27 per cent. "Guess? Inc is one of our highest conviction stock choices and should move higher as housing and consumer confidence data in the US improves further," Mr Kirkman says.

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait

Dr Amal Khalid Alias revealed a recent case of a woman with daughters, who specifically wanted a boy.

A semen analysis of the father showed abnormal sperm so the couple required IVF.

Out of 21 eggs collected, six were unused leaving 15 suitable for IVF.

A specific procedure was used, called intracytoplasmic sperm injection where a single sperm cell is inserted into the egg.

On day three of the process, 14 embryos were biopsied for gender selection.

The next day, a pre-implantation genetic report revealed four normal male embryos, three female and seven abnormal samples.

Day five of the treatment saw two male embryos transferred to the patient.

The woman recorded a positive pregnancy test two weeks later. 

Company%20Profile
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COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A

The Transfiguration

Director: Michael O’Shea

Starring: Eric Ruffin, Chloe Levine

Three stars

Ain Dubai in numbers

126: The length in metres of the legs supporting the structure

1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch

16 A380 Airbuses: The equivalent weight of the wheel rim.

9,000 tonnes: The amount of steel used to construct the project.

5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place

192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.

Name: Brendalle Belaza

From: Crossing Rubber, Philippines

Arrived in the UAE: 2007

Favourite place in Abu Dhabi: NYUAD campus

Favourite photography style: Street photography

Favourite book: Harry Potter

Nayanthara: Beyond The Fairy Tale

Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni

Director: Amith Krishnan

Rating: 3.5/5

Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199

Super heroes

Iron Man
Reduced risk of dementia
Alcohol consumption could be an issue

Hulk
Cardiac disease, stroke and dementia from high heart rate

Spider-Man
Agility reduces risk of falls
Increased risk of obesity and mental health issues

Black Panther
Vegetarian diet reduces obesity
Unknown risks of potion drinking

Black Widow
Childhood traumas increase risk of mental illnesses

Thor
He's a god

INFO

What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.

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