Newspaper Tips & Round-Up

LONDON (ShareCast) - Recruiter Michael Page (LSE: MPI.L - news) issued its first-half trading update yesterday, saying that second-quarter profit fell by 45% to £83.8m. Perhaps more worryingly for investors is that it does not see things improving before the start of next year. The Independent dislikes the whole sector and believes the rising unemployment rate counts against it. Avoid.

Previous recessions indicate that fee declines of up to 10% can be expected. Last October's 165p is likely to have been the low. But, at 234¾p, or 50 times the best guess of next year's profits, and the yield a modest 3.5%, neither is there a compelling short-term reason to buy. Pass adds the Times (1832.HK - news) .

Big Yellow would be the Independent's pick in the self-storage sector, but the stock is cyclical. With plenty of commentators now predicting a double-dip recession, wait for a little while before buying Big Yellow. Buyers today could yet get caught out badly. Cautious hold says the paper.

Building materials giant CRH (Dublin: CRG.IR - news) claims to be seeing the first signs of increased activity from government stimulus spending on infrastructure; something that, as America's biggest supplier of asphalt, it is well placed to benefit from. At €;15.98, or 11 times next year's earnings, buy on weakness suggests the Times.

The Telegraph looks at the oil sector. Of the oil majors, BP is a buy because of its dividend. For future production growth, it has a buy stance on Tullow Oil (LSE: TLW.L - news) , Dana Petroleum (LSE: DNX.L - news) , Afren (LSE: AFR.L - news) and Venture Production (LSE: VPC.L - news) . In liquefied natural gas, BG Group (LSE: BG.L - news) is the preferred play and there is a buy stance on three oil service companies: Wood Group, Petrofac (LSE: PFC.L - news) and Cape (LSE: CIU.L - news) .

Support services group Cape's valuation is undemanding despite a 206% surge in the share price over the last six months. The shares trade on a price earnings ratio of seven times, a discount to the rest of the sector, and continually strengthening energy markets still make it a buy says the Independent.

David Page, chairman of Clapham House (LSE: CPH.L - news) , claims that green shoots are "invisible" and that any restaurant business that manages to maintain profits over the next two years will be doing well. His main objective, rightly, is reducing its debt rather than opening new eateries, but the potential of GBK remains significant. That is why Capricorn Ventures, the owner of Nando's, is sitting patiently on a 25% stake. Other shareholders should follow suit. At 67½p, hold on says the Times.

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