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Sunday share tips: tinyBuild, Ocean Harvest Technology

Sun 09 April 2023 18:05 | A A A

No recommendation

No news or research item is a personal recommendation to deal. Hargreaves Lansdown may not share ShareCast's (powered by Digital Look) views.

(Sharecast News) - The Sunday Times's Lucy Tobin told readers to buy shares of game developer tinyBuild.

Yes, the size of the video games market in the UK had shrunk by 5.6% in 2022, as Britons came out of the pandemic and the cost of living crisis squeezed purses.

But whereas in March 2021 the shares were changing hands on a price-to-earnings multiple of over 50, nowadays they were trading at 6.2.

And according to analysts at Liberum "the valuation looks wrong", Tobin said.

The software developer also had a burgeoning pipeline of upcoming titles to look forward to with games including I Am Future, Once Upon a Time in Roswell and Pigeon Simulator.

Together with its back catalogue, that was expected to push sales from $63m in 2022 to $74m by 2024 and $84m by 2025.

"Some titles may wobble, but gaming still has a big following. tinyBuild is a reliable developer of popular titles and its shares are in the bargain basement. Buy."

The Financial Mail on Sunday's Midas column recommended shares of recently-listed Ocean Harvest Technology to its readers.

Ocean Harvest had built a network of seaweed harvesters, mostly in South East Asia, who would then ship it to its processing facility in Vietnam where it made pellets, meal, powder and granules that were crafted to suit the various types of animals.

Revenues were up by 67% to €2.5m in 2022 and further rapid growth was expected for the current year.

Farmers spent over £30bn per year on animal feed and the market was expected to grow at an annual clip of 6% - with natural products increasingly favoured.

Seaweed had a very beneficial effect on animals, leading them to eat less, grow more and cutting down on premature deaths.

In the case of dairy cattle and hens, both had been shown to become significantly more productive.

Having listed in London during the previous week, the company was soon expected to switch to reporting in sterling.

"Demand for meat and fish is rising and demand for animal feed is growing in sync," Midas said.

"Natural additives help farmers to do more with less and seaweed is up there with the best of them, making animals healthier, happier and more productive. Ocean Harvest Technology is a true pioneer in this field and the shares, at 17.6p, should go far."

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