Date: Friday 11 Jun 2010
Home Retail's shares now trade on a 2011 forecast multiple of less than 10, which puts them at a nice discount to the retail sector, while speculation over a potential takeover bid, perhaps from the world of private equity, perhaps from Asda, is unlikely to go away. Worth a look for speculative buyers says the Independent.
To back Premier Farnell is an investment in the global recovery in manufacturing investment — and in the track record of chief executvie Harriet Green. It is a company tied to the economic cycle and will suffer should recovery stall, notwithstanding its plans to diversify geographically.
The surge in the share
Distributor Premier Farnell trades on a multiple of 15.4 times 2011 forecast earnings, which declines to 13.7 times on forecast 2012 earnings. The prospective yield remains solidly above 4%, which is better than what you get in the broader market. Put all that together and this company is a clear buy says the Independent.
Allocate makes software that helps clients to organise staff, focusing on the defence, maritime and healthcare markets. On an undemanding 11.1 times forecast 2012 earnings and with fund managers from Gartmore, Jupiter Asset Management and BlackRock all taking significant stakes. Buy says the Independent.
Hargreaves Services, the coal supply-chain group and owner of the Maltby Colliery in Yorkshire, has walked away from its mooted purchase of UK Coal. Trading on a May 2010 multiple of 7.5 falling to 6.2pc in 2011, the shares offer good value. Buy says the Telegraph.
Go-Ahead is one of the UK's largest bus operators. It has a fleet of more than 3,500 buses, which carry about 1.6m passengers every day. The company operates regulated services in London and the South East as well as deregulated services in places from Tyne and Wear in the North East to Brighton on the South Coast. The shares have been falling with the market since mid-April and they are now trading on a June 2010 earnings multiple of 10.3 times, falling to 10.1 next year and just 9 in 2012. This appears cheap. Buy says the Telegraph.
Another day, another Daisy deal. The small-cap corporate telecoms reseller, which has snapped up more than 30 companies over the past few years, has added the Northumberland-based mobile phone reseller Fone Logistics to its chain of assets for £3.6m. However, Daisy has a good track record in rolling up underperforming rivals and will no doubt be attractive to a larger rival once it achieves scale. With the shares ½p dearer at 96½p, the stock trades on an undemanding rating of 9.3 times FinnCap’s 2011 forecasts and looks good value if it keeps performing. Buy says the Times.
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