Wednesday, August 11, 2010

LONDON Wednesday tips round-up: TUI Travel, DSG International, Pendragon...


Date: Wednesday 11 Aug 2010
stock vector : modern bonus sign
While the short-term looks a little gloomy, tour operator TUI Travel is adamant it is well-placed for medium-term prosperity.

Meanwhile, the collapse of Goldtrail Travel has cut capacity and highlighted the benefits of fully protected package holidays. The 10% fall in the shares — down 22½p to 203.1p — could also prompt TUI, the German shipping group that owns 54% of the shares, to pounce on the rest. Hold says the Times.
DSG International expected sales of TVs to slow down after the World Cup's final whistle, but the owner of Currys and PC World will be concerned by the British Retail Consortium's declaration yesterday that electricals are weak across the board. Computer sales, it said, were "promotion-led", ie cheap.The company has declined to provide a timeframe for reinstating its dividend. Despite its recent momentum and progress, the next year will be a tough one for electricals chains, so the cash may not be forthcoming immediately. Hold says the Independent.

Strong results from 
Pendragon look like good news for the recession-whipped car industry. The automotive retail group saw revenues up by 16% to £1.8bn and underlying pre-tax profit booming by 48% to £15.7m in the first half of the year. But the combination of the end of scrappage and worries about a double dip in the economy  threaten to drag consumer confidence back down. If investors must test drive the automotive sector, Pendragon's respectable valuation makes it is as good a stock as any. But it is still a punt on a highly uncertain future. Hold says the Independent.

Market researcher 
YouGov has been particularly visible in the UK this year as it provided reams of polling data around the general election, yet the group is currently looking across the Atlantic for its expansion plans. YouGov shares have been languishing under 40p for the past two months, the result of a nasty first-half loss. The company may be premature to claim it has "turned the corner", but its ambitious plans make it worth investing for the medium term, the Independent reports.

Analysts are divided over whether 
Interserve’s lowly rating of 5.6 times 2010 forecasts and its 8.6% yield merited a buying opportunity — especially as the company needs to find a new finance director. Yet with shares trading at almost exactly half the 2006 peak of 420p, a re-rating looks overdue. Buy says the Times. 
stock photo : Crayon
Telecoms equipment specialist BATM Advanced Communications is a throwback to the days of the tech boom. The group slid to a loss in the first half of the year amid problems with a large customer, thought to be Nokia Siemens Networks. BATM looks risky at this level so hold on for more clarity says the Times. 
source:digitallook

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