Friday April 11, 06:53 AM
Friday tips round-up: DSG, Hays, Thomas Cook
LONDON (ShareCast) - Investors should not be tempted by DSG's potential yield of more than 13% as the dividend is likely to be slashed to pay for a sales showroom revamp. When a company gives warning on profits twice in quick succession,
it may be worth waiting for the next one before counting on a share price that offers good value says the Times (1832.HK - news) .The Telegraph adds that normally it would consider buying the shares at such depressed levels. The stock trades on just 7.3 times 2008 earnings, rising to 7.8 times 2009. However, there are huge structural issues affecting DSGi. Right now, it can't see the bottom of this. Sell. With shares in commercial property companies on the slide over heightened fears for rental growth, GP surgery specialist Primary Health Properties (LSE: PHP.L - news) may have offered a small respite for a battered sector. The shares are still at a 23% discount to NAV, indicating that another fall in capital values is priced in. With a yield of 5%, hold on says the Times. Don't rush out to offload Hays (LSE: HAS.L - news) , which put out a bullish trading statement yesterday, just yet. The group operates at the lower end of the recruitment sector, placing those earning salaries of between £15,000 and £50,000 a year. That part of the market is holding up fairly well, says the company, but the share price probably has further to fall and most reckon the economy will get worse before it gets better. However, given the multitude of pies in which Hays has fingers, it is worth keeping an eye on. Cautious hold says the Independent. Thomas Cook (LSE: TCG.L - news) chief executive Manny Fontenla-Novoa reckons that holidays are the last thing that people skimp on and that they would rather spend less when they get to wherever they are going. He has research to prove it, too, he says. "The summer holiday is a must have," he says. Sceptics could also consider the company is buying back shares, which should convince anyone sitting on the fence says the Times. Hold. Despite all the cheer, Thomas Cook remains consumer facing and while many people will insist on their summer holiday, it will suffer with a recession. Hold off for now to see which way the weather blows says the Telegraph. Hardy Oil and Gas reported an 18.6% fall in full-year net-profits yesterday and for a company that has seen its shares fly in the last 12 months, investors may not consider the numbers to be good enough. The problems last year centred on one of the company's wells becoming unusable, which hit the final numbers. Hold for now says the Times. Outsourcer Xchanging (LSE: XCH.L - news) trades on around 21 times forecast earnings, in line with the rest of the sector, but with good visibility and a strong market position, the Telegraph believes it justifies a premium. Buy.
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.
|
Send Article by Email
