Tuesday tips round-up: Wm Morrison, VT Group, RM
Wm Morrison shares have hit the skids in recent days as investors grapple with what to do about the curveball thrown at the group by the departure of chief executive Marc Bolland for M&S.Given the uncertainty, Morrison is a speculative buy, not least because the shares will be choppy as speculation over the succession mounts and names are linked to the job (the rumour mill has already started). But those with a strong stomach may be rewarded if they tuck in says the Independent.
First half profits from maintenance specialist Mitie jumped by 12.5%, with the firm adding it is confident of hitting full-year targets. The stock currently trades on a p/e of 12 times, putting Mitie shares at a discount to rivals like Serco and Capita. The dividend yield, at 3.2%, is decent enough, but after a good run hold says the Independent.
At 235p, Mitie shares have marked time in recent months — and may tread water still, given fears that underlying growth could falter from here. But at 11 times next year’s earnings, and the balance sheet strong, they remain reasonably valued. Hold adds the Times.
Consumer electronics group Armour shares appear relatively inexpensive, standing as they do at little more than a third of the company's asset value. At around 14p, they are trading at around the same levels as mid-September 2008, when Lehman Brothers went under. That makes them undervalued. Buy says the Independent.
Today's Headlines
Armour Group (AMR) | Price: 15.00p | Change: -11.11% Investment Column:Armour Group Mitie Group (MTO) | Price: 233.80p | Change: -0.55% Investment Column:Mitie Tempus:Mitie Group Morrison (Wm) Supermarkets (MRW) | Price: 276.70p | Change: 0.22% Investment Column:Morrison RM Group (RM.) | Price: 162.00p | Change: 5.59% Questor:RM VT Group (VTG) | Price: 566.00p | Change: 1.80% Questor:VT Group |
| P/E: 9.3 | Div Yield: 2.1% 
| P/E: 13.7 | Div Yield: 2.9%
| P/E: 15.9 | Div Yield: 2.1% 
| P/E: 10.5 | Div Yield: 3.8% 
| P/E: 16.7 | Div Yield: 2.5% 
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