Wednesday's tips round-up: Cineworld, Melrose, Sage
With last month's replacement of Cineworld's Carlton Screen Advertising deal with a joint venture with Odeon also removing a significant uncertainty, the shares, at 130p, or nine times 2008 earnings, are worth tucking away for the long term, according to the Times. The Independent also says buy.
Melrose Resources is well hedged against movements in commodity prices; it has contracts that fix the price of its gas and calculates oil revenues using a price at more than 30 per cent less than the market value. Buy, says the Independent.
On around 13.2 times forecast earnings, yielding 3.8pc, the Sage shares don't look particularly expensive. But wait to hear Sue Swenson's US turnaround plan before taking another look, says the Telegraph.
Combined with a difficult outlook and L&G's recent outperformance against its peers, the shares, at 122.9p, offer little short-term interest. Avoid, says the Times
(Article continues below)Advertisement
At £14.82, up 67p yesterday, Derwent shares trade at a 21 per cent discount to a net asset value per share up 8.4 per cent over the year to £18.62p. Hold on, recommends the Times
Investors with a nervous disposition should probably avoid Ted Baker. If the world's financial crisis deepens, every retailer will be hit, irrespective of how great their brand is. But for those hoping to pick a winner in troubled times, Ted Baker could be it. Hold for now, says the Independent.
Land Securities is a hold, according to 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.
