LONDON Friday tips round-up: Johnson Matthey, CWC, Helical Bar,

Date: Friday 04 Jun 2010

New emission control laws promise to drive growth for Johnson Matthey, which is the world's largest supplier of catalytic converters.

The heavy-duty diesel market, though dogged by some uncertainty about the timing of the recovery, offers particular grounds for optimism and all European light-duty diesel cars will have to be fitted with catalysed filters from next year (about 70% have them today). Buy says the Independent.

Johnson Matthey shares have risen 20% in the past year but have come under pressure in recent weeks to sit at 12.3 times consensus forecasts for 2011. That compares to a sector average of 11.6 times and with the medium-term outlook clouded by uncertainty, it does not yet look time to buy. Hold for now says the Times.

Overseas telecoms group CWC trades at 11.5 times profit forecasts for the current year, comparable to its international peers. However, the 9% dividend yield and the potential for a sudden recovery in tourism in the Caribbean should afford the company a premium rating, particularly as it is often linked with a private equity takeover speculation. Buy says the Times.

Helical Bar is a property group that prides itself on the diversity of its portfolio, which includes everything from retirement homes in Hampshire to retail parks in Poland. Mike Slade, the chief executive, sees looming ominously over the rest of the property market. He believes that it is already stalling again after a remarkable 14 per cent resurgence in capital values since July last year. A hold for those in it for the long-term says the Times.

At 297p, Helical Bar shares are trading at a moderate premium to next year's forecast net asset value per share of 294p. If the valuation looks pricey, it should be remembered that the shares are at something of a low ebb, having fallen sharply since testing the 360p level in April. Buy says the Independent.

The Real Good Food Company, which distributes non-refining sugar and makes of bakery products and ingredients, trades on a tasty looking multiple of just 3.9 times 2011 earnings. RGFC is bullish about current growth rates at its baking ingredients business Renshaw's, and the Hayden's sweet bakery unit that supplies cakes to retailers including Waitrose and M&S. Based on that, RGFC is a solid buy says the Independent.

There are better yields elsewhere, but Northumbrian Water has a policy of increasing dividends by around 3% for the next five years. In an uncertain market environment, the prospect of dividend growth makes Northumbrian one to keep in the tank. Hold says the Telegraph.