Tuesday tips round-up: UK Coal, Centamin Egypt, H&T
Britain's largest coal miner gave a sombre update yesterday with the news of another death at one of its mines. The fatality at its Kellingley mine has halted production for a week. UK Coal also has more than 40,000 acres of land, where it used to have working mines. Much of the land is agricultural, which is expected to double in value in the next five years.The company remains confident that development of the land should also coincide with an upturn in the property cycle. Investors are likely well and truly fed up with the stock, but should continue to hold on if they have lasted this long, says the Telegraph.
The Independent prefers some of the bigger international miners, but thinks there is still potential for profit in the Yorkshire hills and, while UK Coal continues to look speculative, investors that buy now could do very nicely indeed.
Centamin Egypt shares have rocketed up by 13pc since last Wednesday (even after falling back slightly yesterday). A bid is very likely. Centamin controls one of the largest gold resources in Africa not held by a major miner. Yesterday's rumour was that Canada's Eldorado is stalking the company. AngloGold Ashanti is perhaps a more likely bet. Any price is likely to be north of 150p a share, valuing the company at more than Ł1.5bn. Hold on for further gains, reckons the Telegraph.
One beneficiary of the gold rush is H&T Group. The pawnbroker said yesterday that it was trading “well ahead” of market expectations. The move into the gold market is more about short-term opportunism than long-term gain, and management admitted as much yesterday by keeping its profits forecasts for 2010 intact while raising 2009 predictions. It is trading at about ten times 2009 earnings, which seems close to its potential peak. Hold says the Times.
Today's Headlines
Centamin Egypt (CEY) | Price: 129.00p | Change: -1.89% Questor:Centamin Egypt H & T Group (HAT) | Price: 301.00p | Change: 5.17% Investment Column:H&T Group Tempus:H&T Group Mcbride (MCB) | Price: 222.60p | Change: 9.57% Tempus:McBride Scotty Group (SCO) | Price: 46.00p | Change: -6.15% Investment Column:Scotty Group UK Coal (UKC) | Price: 91.00p | Change: -4.46% Investment Column:UK Coal Questor:UK Coal |
| P/E: n/a | Div Yield: 0.0% 
| P/E: 13.7 | Div Yield: 2.2%
| P/E: 17.0 | Div Yield: 2.7% 
| P/E: n/a | Div Yield: 0.0% 
No comments:
Post a Comment