Thursday tips round-up: Anglo American, Thorntons, Pendragon
Although Chinese interest in Africa should underpin sentiment, as should Anglo American's status as a potential take-out target, the shares, at £31.61, or 11 times 2008 earnings, are up with events. Hold, says the Times.
Thorntons had become a somewhat tired brand a couple of years ago, but appears to have positioned itself back into the premium market, benefiting from the consumer trend towards higher-quality treats. Shares are not cheap, trading at 15 times 2008 forecast earnings, but with the recovery on track, there is further to go for. Add, says the Independent.
Pendragon's shares are hovering near an all-time low and trade on just 6.5 times earnings with a 12pc yield. However, the valuation, historically, has been lower and with poor visibility for the rest of 2008, the shares are still worth avoiding for now, says the Telegraph.
Millennium & Copthorne is a paradox for the City. Good performance meets questionable governance. The company may face difficult challenges ahead but existing investors should not check out just yet, says the Telegraph. The Times and the Independent agree and also say hold.
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Altona, which listed in 2005, has exploration licences in the Arckaringa basin, which contains more than 7.5 billion tonnes of coal. It wants to build a plant that converts coal into more environmentally clean energy sources including gas and synthetic fuels.
The coal-to-liquid technology is already proven. It provides 30 per cent of South Africa's petrol and fuel needs although not enough to meet the demands of the mining companies. Altona, which raised £2.7m through a placing last April, is valued at £17m. Speculative, says the Independent.
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