Sunday newspaper share tips

The Sunday Telegraph

Shares in Punch Taverns weakened in the spring as analysts cooled their interest in pubs groups amid fears that consumers were spending less. In contrast to rival Whitbread, which saw sales slow in the first few weeks of its financial year, Punch is seen as having a resilient business model. It receives a mixed income from rents and beer sales. With profits rising 37% at the time of its last interim results and its portfolio of community pubs serving more loyal customers than high street outlets, Punch shares are undervalued at 685p.

Halifax and Bank of Scotland owner HBOS last week became the third banking giant to warn about non-performing loans. But closer scrutiny of HBOS reveals it is less exposed to consumer credit problems than rivals such as Barclays - the UK's leader in credit cards. HBOS also told investors last week that its net interest margin was stable and revenues were 'usefully ahead' of last year. The recent weakness in the share price represents a buying opportunity at 811p.

Shares in Homeserve, the emergency repair and service company (935p), have more than doubled in two years but still have further to go. The company has grown by giving customers instant access to plumbers and tradespeople but there is only a 30% penetration rate in boiler repair cover, which is the most mature area of this market. It is increasingly becoming the tied insurance repairer for large insurance groups and with water damage the most common cause of insurance claims, this is a huge under-exploited market. Keep buying.

There is still value in greeting cards and wrapping paper company International Greetings (411½p). Last month's acquisition of Anker International will lift sales by £40m and is expected to boost profits by 25% to £2om. One broker has set a target price of 460p. Buy.

Also worth checking out are biotech company Protherics and life insurer Chesnara, the paper said.

The Business

Entertainment Rights boosted sentiment with the announcement that daily shows featuring Postman Pat will be shown on HBO in the United States this autumn. The firm is better placed than many of its rivals as it has more than one successful character in a portfolio that includes Basil Brush and Little Red Tractor. With a positive outlook because of the increasing number of television channels and DVD, Entertainment Rights shares are a good long-term investment at 27.25p.

Property maintenance firm Connaught registered another strong first half as the business won a number of big new contracts and completed the integration of three acquisitions made during 2004. First-half profits rose more than 68% to £3.6 million and turnover was up 8.1% at £114 million, while the group's order book now stands at £1.3 billion. With the ongoing push by the Government for better social housing continuing to drive the sector and Connaught also looking to expand outside England, shares in the firm still have room to rise from 590p.