Shares in Burberry are cheap, given the growth prospects on the way for the company.

Burberry, which suffered from as a label of choice for chavs, is currently trading at a discount to the wider luxury goods sector, including rivals such as Gucci, LVMH and Hermes. Shares in Burberry fell as much as 5% last week, as sales in the fourth quarter last year were below forecast.

However, Burberry, which has about 175 shops and concessions, expanded into India, Turkey and Poland in the quarter, and plans to increase retail space by 9% in the second half. The long-term strategy is to move more into retail. At their current price, the shares are a buy.

Savills BUY

Estate agent Savills, the bestperforming British property stock in 2005, reported last week that fullyear profit would be ahead of expectations after an "exceptionally strong" December. Money has flowed into the commercial property market in the UK on the back of strong investor demand, and shares in Savills should increase further.

The UK is Europe's largest commercial real-estate investment market, and London's West End is home to the world's most expensive offices.

Analysts at ABN Amro have raised their estimates for pretax proitt to £56m compared with £50.2m last year. Savills is a good long-term buy.