Date: Sunday 16 May 2010
Inter-dealer broker Tullet Prebon saw its shares crash last week after the company said takeover talks had ended.
The Telegraph feels the falls have been overdone and now is a good opportunity to buy. Tullett's revenues fell 12% to £312m in the first four months of 2010 compared with the same period a year ago. However, it argued that business continued to be "robust" and management expects to have a better second quarter.
Tullett shares are trading on a December 2010 earnings multiple of just 7.2 times, falling to 6.8 in 2012. Rival ICAP shares are trading on a March 2011 earnings multiple of 11.6 times. The downside for Tullett shares should be limited because the current valuation is supported by the yield, which currently stands at a worthwhile 4.9%.
Shares in telecoms giant Vodafone have come off highs, which means its dividend is looking attractive. The shares are now yielding almost 6.1%. Full-year results come on Tuesday, which look set to show a slight improvement in revenue and flat profits. The consensus view is for revenues of £44.3bn, up from $41bn, and operating profits of £11.4bn compared with £11.8bn. The shares remain a buy for their cash-flow and attractive dividend yield says the Telegraph.
The Mail on Sunday looks at London Stock Exchanges's retail bond market and suggets more cautious invetors could look at those from Tesco, paying a coupon of 5.5% and maturing in 2019, and from Imperial Tobacco, paying 6.25% and maturing in 2018. Both companies are strong, solid and extremely unlikely to go bankrupt any time soon the paper says.
Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
No comments:
Post a Comment