Budget airline and rejuvenated Peugeot are top picks for Threadneedle's Davies

TIP OF THE WEEK

William Davies, head of European equities at Threadneedle, reveals four stocks that are driving his portfolio into 2011

Ryanair We like Ryanair as it operates in an industry that is consolidating as the major players merge and reduce in number. Most importantly, it has a successful position as the lowest cost operator and a successful brand built around offering good value to its customers. The group has operated with high yields and has suffered less than its competitors in a difficult market over 2010 (air traffic control disputes in Europe, volcanic ash cloud disrupting flights and so on). Ancillary charges (for example, for credit card payments and excess baggage) are a useful source of added revenue...