Derek Mitchell, manager of the £462m Royal London UK Opportunities fund
"Rockhopper, an oil exploration company based in the Falklands, is a stock held by almost all of the funds at Royal London.""The share price is very volatile, and because it is not part of our benchmark it carries a high risk profile. However, we believe the company is worth at least twice as much as £2.40 a share."
"It has found a substantial amount of oil, but the market seems to think the company will have a problem commercialising its discovery."
Rockhopper has an FE Risk Score of 812; by comparison, BP has a score of 166.
"We also have a high-conviction position in Meggitt."
"In recent years, US airlines haven’t bothered to renew their fleets. However, the upward trend of oil prices has increased the importance of engine efficiency, which led to an order of more than 400 new planes from American Airlines last week."
"The main beneficiary will be Boeing and Airbus, but the likes of Meggitt, which processes parts of planes, will also get a big boost."
Julie Dean, manager of the £162.5m Cazenove UK Opportunities fund
"Xaar is a global supplier of digital inkjet print heads. Strong earnings growth is anticipated due to demand for its ceramic tile printing system.""This technology will enable ordinary ceramic tiles to look just as good as marble or granite but at a fraction of the cost. The biggest challenge the company has is managing the business’s rapid growth – a nice problem to have in the current environment."
"Howden Joinery sells kitchens to builders. The use of trade depots rather than retail outlets and their strict focus on stock control gives them a real edge. This is translating into good volume growth despite a tough UK consumer environment; however, the stock trades on a price/earnings ratio of just nine times, which is far too cheap."
Howden Joinery has a 3.37 per cent weighting in Dean’s portfolio, making it her seventh-biggest holding.
Marina Bond, manager of Rathbone Recovery
"Advanced Medical Solutions develops wound-care treatment. Its newest product – LiquiBand – makes the company particularly attractive."
"LiquiBand has a 70 per cent market share in the UK despite the presence of Johnson & Johnson. The product has recently been launched into the US market, and has had a decent uptake."
"J&J has the biggest market share in the US – if LiquiBand gets anywhere close to getting a 20 per cent market share, it will do very well indeed."
"RPC has led the way in shifting the packaging industry from metal and glass to plastic, which is cheaper, lighter and more versatile. The company has a good market share, and is the leader in innovative products."
"Its most recent venture is a plastic Heinz baked-bean container, which can be put back in the fridge after use."
Joanna Shatney, manager of Schroder ISF US All Cap
"YUM, which franchises quick-service restaurants, is set to benefit from its 50 per cent exposure to emerging markets.""Restaurant chain market share in China is only 3 per cent and allows for continued penetration."
"In the US, YUM continues to sell its assets as part of its refranchising strategy. This reduces its volatility, and allows it to direct its resources into international markets with stronger growth prospects."
Graham Spooner, investment adviser at The Share Centre
"Mobile banking and payment technology provider Monitise has very good growth potential."
"A new deal with Visa makes the stock particularly appealing – Monitise now has access to Visa’s 1.7bn cardholders."
"Takeover rumours are also circulating the markets. The share price has risen by 35 per cent since our initial ‘buy’ recommendation in May and we would not be surprised to see some short-term profit taking; however medium-term attractions remain."
Monitise has an FE Risk Score of 421 – more than four times as high as the FTSE 100.
"Cape – an industrial services company – is another good option. The company expects to benefit from new plants in emerging markets and aims to maintain ageing equipment in developed markets."
"It has increased its capital expenditure by 30 per cent in anticipation of an increase in demand for its services."
"Despite the strong rise in the share price it is relatively cheap compared to 2012 earnings forecasts, so we suggest medium-risk investors to drip feed into the company."
Nick Skiming, manager of Ashburton Global Americas Equity
"Green Mountain Coffee Roasters’ coffee system eliminates the need to make several cups at a time, thus reducing unnecessary waste and cost."
"Being on such a rich multiple makes this business quite risky, but it has stable revenue and little cyclical impact."
"GMCR hopes to double its market share in the American household from 7 to 16 per cent in the near-term, and is expanding its range beyond coffees to tea, providing investors with multiple avenues of revenue growth."