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Friday tips round-up: Shaftesbury, Sportingbet, Findel
Thu, 09 Feb, 2012
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Friday tips round-up: Shaftesbury, Sportingbet, Findel
Fri, 13 Aug 2010, 05:25:00
Shaftesbury
's valuation looks increasingly compelling. Several analysts upgraded their year-end net asset value forecasts yesterday, typically by about 3 per cent. The yield, estimated by Evolution Securities to be 2.9 per cent by next year, is already decent, but the Independent would argue that there is still juice left in the shares. Property groups, especially those that have a large exposure to retail markets, are starting to get gloomy about their prospects. Shaftesbury is positively sunny in its outlook. Buy. The Times says Shaftesbury's shares trade at a premium to its peers, so if consumer confidence falters further there may be little short-term upside from here. Only hold.
Sportingbet
trades on a multiple below 10 times forecast earnings for this year, according to Collins Stewart. At the same time, it offers a prospective yield of over 2 per cent; that figure rises to nearly 3 per cent on the broker's estimates for 2012. To lose out on the World Cup may be regarded as a misfortune; to miss out on investing in Sportingbet would look like carelessness. Buy, says the Independent.
Findel
, the ailing home-shopping and educational supplies business, kicked off a review of its business last month after reporting losses of £76.1m for the financial year, which it euphemistically described as a "challenging" period. David Sugden, the chairman who joined in April, may be able to pull some rabbits out of the hat with his review, and Findel does have profitable businesses, including Kitbag and Kleeneze. But the Independent doesn't think it's out of the woods yet. Sell. Shares in
PayPoint
surged last month after the National Lottery Commission rejected its rival's plan to offer phone top-ups and payment processing through its own network but investors have woken up to the threat that the regulator could change its mind after Canadian-owned Camelot proposed remedies to ease anti-competitive concerns. PayPoint remains confident that its rival's plea will fall on deaf ears and that the Lottery Commission will stand by its original decision. Yet certainty could yet be months off, which may translate into an overhang while the issue is resolved. Shares trade at a modest nine times projected earnings, which is undemanding but holding on for clarity at this point, according to the Times.
Inmarsat
plans to spend $1.2bn (£765m) on three new satellites from Boeing to increase its mobile broadband network. This will give the group global high-speed coverage by the end of 2014. The most interesting part of this deal is that Boeing also entered into a distribution partnership with Inmarsat to provide capacity to users within the US government. Strategically, this partnership looks very sound indeed. All Inmarsat has to do now is deliver. Hold, says the Telegraph.
Lincat
is the last man standing in the listed kitchen equipment sector. It once vied with its bigger rivals Aga Foodservice and Enodis for investor attention, but they have fallen into foreign hands. Visibility is an issue for Lincat. It deals with resellers rather than directly with end customers so it was not able to determine whether the recession-defying sales growth was a result of pent-up replacement demand or new café openings. Yet its valuation of 7.2 times 2011 forecasts and yield of 6.1 per cent is too attractive to pass by, particularly in a consolidating sector, says the Times. Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
Related Newspaper Articles:
Investment Column : Shaftesbury
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The Independent
Investment Column : Sportingbet
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The Independent
Investment Column : Findel
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The Independent
Questor:Inmarsat
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Telegraph
Questor:Balfour Beatty
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Telegraph
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