Tips Watcher Alert (UK)

Thursdays tips round-up: Hochschild, FirstGroup, ENRC

The mining sector has become something of a dangerous place to put your money in recent months, with the industry having to contend with volatile prices, merger speculation and grumpy Chinese buyers. With Hochschild, at least punters avoid some of these hazards. Further cost savings are expected, and with the shares trading at an unjustified discount to the sector, we reckon it is worth a bet. Buy, says the Independent.

FirstGroup shares were recommended on May 14 at 356p and they are just a touch below that level now. However, with the shares trading on a March 2010 earnings multiple of just 8.8 and an impressive yield of 5.8pc, the stance on the shares remains buy, writes the Telegraph.

ENRC shares jumped 6 per cent to 825.5p yesterday, comfortably above their 2007 float price of 540p. This values them a hefty 23 times the average earnings forecast by analysts for the full year. It’s an extravagant premium for a niche miner in a volatile sector, not least when Mr Sittard warns that although sales volumes are rising, prices will not recover to 2008 levels. Too expensive, writes the Times.

The Independent thinks that shares in Shore Capital have some way to go, and this level, despite yesterday's increase, remains an attractive entry point. There is clearly a risk that disaster will return to the financial markets, but there is no greater risk of that happening than a crisis afflicting another industry. The paper says it would buy Shore now, watch the stock rise and collect the dividend. Buy.

Aviation is not out of the woods but it is not getting worse, says Menzies, and airlines will want to shed more non-core businesses in the upturn. Even after yesterday’s gains, the stock is attractive, says the Times.