Friday tips round-up: Antofagasta, JJB Sports, Kingfisher
Antofagasta's full-year copper production is now forecast to be at least 6% lower than in 2006, while molybdenum production, a copper by product used by the steelmaking industry, is also going to be lower after a 14% drop in third-quarter production.
In ordinary times there is enough bad news in this announcement to recommend a flat-out sell on Antofagasta. Antofagasta is lucky - its buoyant market, driven by Chinese demand, gives it a get-out-of-jail-free card at the moment. Even so, no one ever went bust taking a profit, so holders should think about banking some gains without heading for the exit completely says the Independent.
JJB Sports "remains cautious" about 2008. Investors should take their cue from the company - remain cautious. For anyone in the stock, barring a miracle there are better places to have your money over the next 12 months and even tougher times may lie ahead. Bite the bullet and sell says the Independent.
Even in these uncertain times, multi-utility Telecom Plus's valuation of 10.2 times this year's projected earnings and 9.1 times fiscal 2009 forecasts looks compelling. Buy says the Independent.
Kingfisher looks set to enter the New Year facing a significant headwind it may struggle to overcome. The company yesterday said that, "A compelling offer in the right environment will continue to attract customers". Unfortunately Kingfisher is neither. Sell says the Telegraph.
Compass's trick must be in continuing to boost margins - 40,000 outlets, 25m customers and 400,000 staff give its considerable scope for refinement - to continue to produce double-digit gains in operating profits. On 17 times current year earnings, Compass is not conspicuously cheap. But the capacity of Compass's balance sheet to fund further share buybacks and as its self-help measures take deeper hold, there are reasons enough to hold on says the Times.
(Article continues below)Advertisement
Halma manufactures the safety systems that surround us no matter where we are. From fire systems in commercial buildings to security sensors, there are few buildings that Halma hasn't had a hand in somewhere. The company generates good cash flow and has cut debt, despite increased levels of investment. The shares trade on a slight discount to the rest of the sector and should offer good value in trying times. Buy says the Telegraph.
A record of 9% annual compound earnings growth over the past decade and a one-way shift in emissions legislation mean that platinum refiner Johnson Matthey, at 19 times current-year earnings, is worth holding says the Times.
Britvic has since recovered from three profit warnings in the Spring. It has focused new product launches on the rapidly expanding stills sector and cut costs. Analysts forecasts vary widely, making an exact valuation difficult, but price targets are in the range of 360p to 390p a share, suggesting limited potential up-side from the current price level says the FT.
Assura has evolved into an operator of more broadly based medical facilities - so-called polyclinics - which also encompass pharmacies and outpatient clinics. The growing premium of the shares to their 121p net asset value indicates that Assura is increasingly being valued off earnings, but that re-rating has farther to run. Buy 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.
