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Wednesday tips round-up: British Land, TUI Travel, Wolfson
10-02-2010 06:37
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The poor sentiment on British Land shares which have underperformed European peers by nearly one third over the past ten months has yet to fully lift.
But British Land's retail side, the company's core, remains strong and it has £2.8 bn of undrawn facilities. At 446¼p, and yielding nearly 6%, it should be given the benefit of the doubt. Hold says the Times.
Despite TUI's sunnier comments on this summer, tour operators are not out of the woods yet. But TUI - which trades on a relatively modest 2010 price to earnings ratio of 9.5 times - looks well-placed to benefit from a sustained recovery once it arrives. Buy says the Independent.
Trading on a 2010 price to earnings ratio of 10 times, care home group Southern Cross is not pricey, and on a sector basis, looks attractive. But just as it recovers from its woes, so the gaping hole in the public finances could well scupper any strong improvement. Hold says the Independent.
Margins are still under pressure from lower selling prices at China Biodiesel, and despite improvements towards the end of the year, revenue for the full year is expected to come in only broadly flat on 2008. But with general optimism about the growth potential in the Chinese market, China Diesel is a buy suggests the Independent.
The nature of underwriter Beazley's specialty business whereby claims typically are paid out five years after the risk is underwritten means that it will gain from rising interest rates. Further, its ability to maintain a combined ratio at 90% over the past four years conveys a lack of volatility for which it should be rewarded. At 103½p, or five times 2010 earnings, the shares remain a buy says the Times.
Wolfson disclosed yesterday that, after doubling the number of product launches in 2009 (from 17 to 34), its chip designs have been incorporated into 250 new devices. The problem is that about two thirds of these gadgets are not yet on the market, meaning that Wolfson's quarterly sales are dependent on the vagaries of its customers' launch schedules. With margins holding firm and net cash a comforting $98 m, at 137¼p, hold says the Times.
Contractor Kier is expected to be profitable this year and next and, after recent share price falls, the shares are yielding 6% this year. The group issues its interim results on February 24. Ahead of the announcement, the stance on the shares remains buy as they have been oversold says the Telegraph.
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.
But British Land's retail side, the company's core, remains strong and it has £2.8 bn of undrawn facilities. At 446¼p, and yielding nearly 6%, it should be given the benefit of the doubt. Hold says the Times.
Despite TUI's sunnier comments on this summer, tour operators are not out of the woods yet. But TUI - which trades on a relatively modest 2010 price to earnings ratio of 9.5 times - looks well-placed to benefit from a sustained recovery once it arrives. Buy says the Independent.
Trading on a 2010 price to earnings ratio of 10 times, care home group Southern Cross is not pricey, and on a sector basis, looks attractive. But just as it recovers from its woes, so the gaping hole in the public finances could well scupper any strong improvement. Hold says the Independent.
Margins are still under pressure from lower selling prices at China Biodiesel, and despite improvements towards the end of the year, revenue for the full year is expected to come in only broadly flat on 2008. But with general optimism about the growth potential in the Chinese market, China Diesel is a buy suggests the Independent.
The nature of underwriter Beazley's specialty business whereby claims typically are paid out five years after the risk is underwritten means that it will gain from rising interest rates. Further, its ability to maintain a combined ratio at 90% over the past four years conveys a lack of volatility for which it should be rewarded. At 103½p, or five times 2010 earnings, the shares remain a buy says the Times.
Wolfson disclosed yesterday that, after doubling the number of product launches in 2009 (from 17 to 34), its chip designs have been incorporated into 250 new devices. The problem is that about two thirds of these gadgets are not yet on the market, meaning that Wolfson's quarterly sales are dependent on the vagaries of its customers' launch schedules. With margins holding firm and net cash a comforting $98 m, at 137¼p, hold says the Times.
Contractor Kier is expected to be profitable this year and next and, after recent share price falls, the shares are yielding 6% this year. The group issues its interim results on February 24. Ahead of the announcement, the stance on the shares remains buy as they have been oversold says the Telegraph.
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.
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