Its consumer division, which aims to sell RAC members other financial products, from car insurance to legal advice, is spluttering. Investors should seek their thrills elsewhere.PRINTING.COMThis has made great progress in spreading stores specialising in leaflets, letterheads and business cards. Hold.RACA peek under the bonnet showed not everything at RAC was firing on all cylinders in 2004. Premier Oil, a London-listed exploration and production group, released a positive drilling update from its interests in the country this week, which may make Premier a takeover target. Although investors will be compensated for the large issuance of equity needed to fund the deal with a special 45p-a-share dividend, Rensburg's recent swift rejection of a 610p-a-share offer by Rathbones could be a big mistake. If things stay as they are, take the 45p and run.PREMIER OILMauritania is one of the exciting unknown quantities in the oil world. Companies with interests in this West African country have, in recent months, caught the attention of investors in a big way.
It must seek bigger and more complex projects and widen its geographical scope in the UK if it is to continue its achievements, and now seems a good time to take profits.RENSBURGShares in Rensburg, the boutique asset manager, have been suspended for the past two months, as the group plans an ambitious reverse takeover of Carr Sheppards Crosthwaite. It has managed to - and continues to promise to - double the size of the company every five years. Buy and tuck away.AB PORTSSouthern ports are congested and Associated British Ports, which handles 25 per cent of the UK's seaborne trade, is dramatically increasing the scale of its operations on the Humber. Investors are starting to look through a dull 2005 to the opening of two new projects in the area next year.
Hold.ST MODWEN PROPERTIESSt Modwen's speciality is the refurbishment of rundown assets such as high-street shopping centres or old factories. The company has spent hard on product development and is also making progress with a new suite of products for trading the more complex financial derivatives beloved of hedge funds. Wait before moving.ROYALBLUERoyalblue's software is used by the world's leading investment banks for trading equities, and for an increasing number of other functions, including financial information. Belatedly, management's bonuses are tied to cash flow and return on equity targets, but confidence can be rebuilt only piece by piece. But we have dismissed the key financial question - why is Compass making less money from its investments than the investment costs? - as being only a temporary issue. It seems the lure of cruising - all those endless buffets and cabaret shows - has outweighed any negative impact from the Aurora, which got no farther than the coast of Devon last month. The Aurora is one of its 77 ships.There is always a risk that fuel costs will spiral faster than expected, but with the market growing so strongly, the shares, which have doubled since Carnival swallowed Princess, still look worth splashing out on.COMPASSThere is nothing wrong with having a global catering giant, as long as it is largely managed locally, and there are some advantages in getting better deals from suppliers.
