Sunday tips round-up: Ocado, Titan, Rockhopper

Soon-to-float online grocery group Ocado is certainly in a growth market. The online food sector is expected to almost double over the next five years from £3.7bn to £7.2bn.

Ocado needs to be a major player in this growth for its model to work. Its strategy is all about increasing customer numbers, increasing how frequently they shop, offering more product categories and expanding geographically.

Average orders per week are currently around 70,000 and this is expected to grow to 222,000 by 2014. Given that the average order size is £116, it is set to see bumper sales in the future.

But there are too many structural and operational risks. It should be remembered that Ocado also has strong online rivals in the shape of Tesco, Asda and J Sainsbury. Avoid Ocado says the Telegraph.

Titan Europe makes huge wheels for tractors, dumper trucks, mobile cranes and similar large vehicles used by farmers, construction groups and miners. Titan shares have had a good run since last month's trading statement, rising from 26p to 46p. But there is still plenty of mileage in the stock. Buy says the Mail on Sunday.

Rockhopper is an oil explorer based in the Falklands and there is every indication that it has made a truly significant offshore discovery in the past few months. While there are plenty of indications that Rockhopper will prove a deeply rewarding investment, there is always a chance that the well will disappoint. Investors should make sure they book some profits - then stay on board for what could be an exciting ride says the Mail on Sunday.


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