Wednesday tips round-up: BT, Workspace Group

The purchase of EE by BT will likely be inked at some point early next year, with the price tag at or around the £12.5bn price given. BT had begun work on building out its own mobile network from scratch, but an acquisition is more sensible. To take note of, even if highly unlikely some observers have suggested BT might be asked to divest Openreach should it succeed in purchasing EE. There is also a question mark around whether the fixed-line telecoms operator will bid for some or all of the Premier League rights which will be auctioned in spring. So while the shares have performed well of late, given the above uncertainties investors would be best advised to hold off from buying. However, if you are already an investor in the company, then hold on to the shares, writes The Times´s Tempus.

Trying to call the top for any market is one of the hardest things to do. So it is too in the case of the commercial property market in London, for which Workspace Group is a proxy. Many have tried to call a top before, only to be proven wrong later. The shares trade on a premium to net assets of over 25%. The company, which typically takes derelict sites and converts them into useful office space, just recently raised £100m to finance its expansion. As well, its recent decision to buy out the banks who had an interest in its Glebe portfolio of properties in London means the firm will capture any upside should it be granted permission for residential development. Even so, the current rating on the stock is high and suggests no reason for an immediate purchase, Tempus says.