Tuesday tips round-up: Robert Walters, Hammerson, AB Foods
Robert Walters' shares, at 149¾p, now trade on 6.5 times 2008 earnings with a 3.5pc prospective dividend yield. Cheap, considering the 20 times earnings the shares tend to trade on in good times. But a recession would see earnings forecasts slashed and, with them, the shares. Tempting as Robert Walters may seem, this is not the time to take a punt. Sell, says the Telegraph.
Hammerson trades on a prospective price/earnings ratio of about 25, which may look expensive but is historically cheap. In January 2007 it was 40. While general property gloom persists, there could be better times to buy the stock this year. Hold, says the Telegraph.
On a price/earnings ratio of 15, shares in AB Foods are not cheap, but they remain a better bet than many FTSE 100 peers, given the current market volatility. Hold, says the Times.
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Darwen is expected to make profits of £2.4m in the current year but the excitement will centre around progress on the development of hybrid buses. At the placing price of 30p, it is valued at £15m. Speculative, says the Independent.
Goals Soccer Centres' shares, up 7p at 330p, are trading on a multiple of about 22 times 2008 earnings. That is not cheap and does not provide much margin for slippage, but the development potential - both here and overseas - makes them a "hold", says the Times.
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