LONDON Tips Watcher Alert (UK)-Thursday tips round-up: Stagecoach, Standard Chartered, Imagination

Stagecoach, the bus and rail operator, proclaimed itself pleased with yesterday's half-year results: pre-tax profits were Ł75.5m, versus Ł105.2m this time last year, while earnings per share dropped to 9p, from 12.1p in 2008. The wheels could certainly come off, but on balance, we're happy to hop on Stagecoach at this stop. Buy, says the Independent.

It will not be until full-year results in March that shareholders inStandard Chartered get a clearer picture of its exposure to Dubai. But Ł14.62, or 12 times 2010 earnings, remains reasonable value for double-digit profit growth. Hold, writes the Times.

The broader trend that underpins Imagination’s growth — the rise in chip-intensive smart phones from 10 per cent of mobile sales to an estimated 40 per cent within three years — is intact. Next year’s US launch of Pure should provide a further fillip. At 224p, or 22 times next year’s earnings, buy on weakness, according to the Times.

The Independent agrees. It says the licensing revenue is also expected to show stronger growth, although it is harder to predict. Despite that slight uncertainty and potential threats from the wider economy, the stock has further to go. Buy.

Companies whose businesses are in long-term decline — as Photo-Me’s undoubtedly is — can generate strong returns as they fade. For example, operating margins should be boosted by purchasing efficiencies. But at 28˝p, or 20 times earnings, the shares are up with events. Pass, says the Times.

Today's Headlines

Imagination Technologies (IMG) | Price: 224.00p | Change: 2.94% | P/E: 60.5 | Div Yield: 0.0% Profile Prices News Charts Financials Broker Views Investment Column:Imagination Technologies The Independent | 10-Dec-2009 Tempus:Imagination Technologies Times | 10-Dec-2009 Photo-Me International (PHTM) | Price: 39.00p | Change: -13.33% | P/E: 205.3 | Div Yield: 0.0% Profile Prices News Charts Financials Broker Views Investment Column:Photo-Me International The Independent | 10-Dec-2009 Stagecoach Group (SGC) | Price: 157.70p | Change: 5.27% | P/E: 6.9 | Div Yield: 3.8% Profile Prices News Charts Financials Broker Views Investment Column:Stagecoach The Independent | 10-Dec-2009 Standard Chartered (STAN) | Price: 1,462.00p | Change: 1.74% | P/E: 13.6 | Div Yield: 2.9% Profile Prices News Charts Financials Broker Views Tempus:Standard Chartered Times | 10-Dec-2009