The surprise admission that Shell has had to cut its estimates for proved reserves by 20 per cent knocked its shares for six and prompted up to five class action lawsuits in the US. If this latest Shell bungle serves to oust its embattled chairman, Sir Philip Watts, it will be worth going the round trip in its shares.

Sir Philip’s failings as a communicator were said by Shell’s spin-doctors to be eclipsed by his “brilliance” as head of exploration and production (E&P). But the doubtful reserves were booked under his watch at E&P and he ought to take responsibility and go.

Even if he digs in, Shell’s shares discount disaster, so mere droplets of better news will push up the price. Full-year net income was 35 per cent higher at $12.7 billion and cashflow from operations was a record $21.9 billion. Shareholders want more: Sir Philip’s exit. Hold, along with shares in ENI and Schlumberger.

SPECIALITY RETAILERS AND LUXURY BRANDS

L’Oréal’s 19.5 per cent stake in Sanofi-Synthelabo, the phar-maceuticals enterprise, would be diluted to less than 10 per cent if the latter’s hostile bid for Aventis, its larger rival, succeeds. L’Oréal would no longer bask in the cosmetic glow of its share of profits generated by Sanofi, but it should reap higher dividends from the merged group.

The 1.8 per cent dip in the group’s full-year sales to

€14 billion (£9.57 billion) does look ugly, but L’Oréal is resilient, not least because its major shareholders, Nestlé and the Bettencourt family, have given up double voting rights, so levelling the playing field for all shareholders. Hold.

Richemont, which embraces Cartier, Van Cleef and Jaeger-Le Coutre, lost 4 per cent of sales in translation from weak dollars to strong euros in the fourth quarter, despite higher sales in constant currency terms. Jewellery and fashion sales fell, but watches clocked up an 11 per cent increase. Hold.

Bulgari’s 2003 sales were €759 million, against €774 million in 2002. It was hit hard in the first half by the virtual halt in high-end travel as a result of the outbreak of Sars and the war in Iraq. But the high-spenders are back this year and Bulgari’s launch of new products should put the sparkle back in its shares. Hold.

Tod’s, the Italian luxury leather goods manufacturer, scored an 8.1 per cent rise in 2003 sales at €387 million. Its leisurewear brand, Fay, posted a 24.5 per cent rise in sales to €64.9 million. Tod’s is poised to leap ahead in sales and profits as it contracts its wholesale distribution and expands its 95-strong network of directly-owned stores worldwide. Hold.

BAA’s third-quarter sales and operating profit to December 31 rose 4.2 per cent to

£499 million and 8 per cent to £149 million respectively. The UK airports business saw revenue rise 8.1 per cent to £455 million and operating profit

10 per cent higher at £130 million. Sales at its UK airport shops climbed 9.5 per cent to £138 million. Hold.