Strong teams at top key to success
PAT McCann, the chief executive of the Dalata Hotel Group — which owns the Maldron Hotels, and the previous boss of the Jurys Doyle group, has business acumen to burn.
McCann kicks off his share tips with Glanbia. “Glanbia has a strong management team and will benefit from their recent restructuring,” said McCann. “Furthermore, they've a strong and evergrowing presence in the United States.”
McCann's second share tip for 2013 is the insulation maker, Kingspan. “This company has a strong management team. There's also been a good recovery in some of their key markets, such as Europe. Kingspan are in an area where there's a lot of focus now such as energy conservation and insulation. At some point, housebuilding will kick off in Ireland and Britain again — I think 2013 will be the start of that, which would be good news for Kingspan.”
McCann's belief that there could be a recovery in the housebuilding market next year is also behind two other stock tips of his — the cement maker, CRH and the DIY retailer Grafton Group.
“CRH have done some good acquisitions this year and there could be more acquisitions on the cards next year. You might also see a recovery in US markets next year, with more infrastructure projects coming on stream — which would be good for CRH. I think Grafton will do well in 2013 as I see the DIY market beginning to recover again. I think people will have the confidence to start reinvesting in their homes in 2013.”
McCann's fifth share pick is financial services company IFG. “This company has good strong management. They could be part of a consolidation play next year, whether that be a takeover by themselves or another company taking over IFG.”
McCann's final share pick goes to the company which he set up the Dalata Hotel Group with in 2007, TVC Holdings.
“The company has a lot of cash on its balance sheet,” said McCann. “It is also in a good position to make acquisitions in 2013, which would enhance the profitability of the business.”