Date: Friday 23 Jul 2010
Yesterday’s interim results from Capita provided fuel for the bulls. The company reported the strongest bid pipeline for many years – up 47%, compared with the same point last year, to £4.4bn.
The interim numbers were in line with City expectations on the revenue front – but profits were ahead of forecasts. The shares are trading on a December 2010 earnings multiple of 17.2, falling to 15.5 next year. Although there are undoubtedly challenges ahead, there are also many opportunities for outsourcers and the shares remain a buy, says the Telegraph.
Kingfisher’s 2011 multiple of 11.8 times forecast earnings represents a slight premium to the sector, many City analysts think this is justified by its global reach, its potential to improve its gross margins through group sourcing, for example, and its enviably strong balance sheet. Despite Kingfisher facing a tough consumer environment in the UK and in other countries this year, its share price is set to rise – albeit modestly – so buy says the Independent.
For now, the market is inclined to give Tate & Lyle’s chief executive Javed Ahmed the benefit of the doubt. The shares are selling on a little more than ten times’ earnings and have the support of a yield of more than 5%. Worth picking up, especially on further weakness says the Times.
Mike Lynch, the founder and chief executive of Autonomy, has always had a strained relationship with parts of the City, and Autonomy shares have headed backwards after five of the past six quarterly announcements. Brokers have the stock trading on 18 times’ 2011 earnings, which, historically, is undemanding. A big acquisition in the autumn is already fully funded. Buy — but perhaps not in the run-up to any results says the Times.
Colt, formerly Colt Telecom and born as City of London Telecoms, has little exposure to spending cuts, with less than 5% of revenues in Europe and less than 1% in the UK coming from the public purse. The group is well financed and has a good spread of business across Europe. But the shares, on more than 12 times’ this year’s earnings, look well up with events says the Times.
Petropavlovsk shares tend to ebb and flow with the value of the shiny stuff, which is hardly surprising given that it is primarily a gold producer. And as investors have rediscovered their nerve over the last month or so, the price of gold has fallen and so has the miner's share price. There was disappointing news yesterday, when Petropavlovsk said it predicted that its full-year gold output would be at the lower end of previous guidance, and that its first-half output fell by 26%. Even so, the recent sell-off is unjustified, so buy says the Independent.
The interim numbers were in line with City expectations on the revenue front – but profits were ahead of forecasts. The shares are trading on a December 2010 earnings multiple of 17.2, falling to 15.5 next year. Although there are undoubtedly challenges ahead, there are also many opportunities for outsourcers and the shares remain a buy, says the Telegraph.
Kingfisher’s 2011 multiple of 11.8 times forecast earnings represents a slight premium to the sector, many City analysts think this is justified by its global reach, its potential to improve its gross margins through group sourcing, for example, and its enviably strong balance sheet. Despite Kingfisher facing a tough consumer environment in the UK and in other countries this year, its share price is set to rise – albeit modestly – so buy says the Independent.
For now, the market is inclined to give Tate & Lyle’s chief executive Javed Ahmed the benefit of the doubt. The shares are selling on a little more than ten times’ earnings and have the support of a yield of more than 5%. Worth picking up, especially on further weakness says the Times.
Mike Lynch, the founder and chief executive of Autonomy, has always had a strained relationship with parts of the City, and Autonomy shares have headed backwards after five of the past six quarterly announcements. Brokers have the stock trading on 18 times’ 2011 earnings, which, historically, is undemanding. A big acquisition in the autumn is already fully funded. Buy — but perhaps not in the run-up to any results says the Times.
Colt, formerly Colt Telecom and born as City of London Telecoms, has little exposure to spending cuts, with less than 5% of revenues in Europe and less than 1% in the UK coming from the public purse. The group is well financed and has a good spread of business across Europe. But the shares, on more than 12 times’ this year’s earnings, look well up with events says the Times.
Petropavlovsk shares tend to ebb and flow with the value of the shiny stuff, which is hardly surprising given that it is primarily a gold producer. And as investors have rediscovered their nerve over the last month or so, the price of gold has fallen and so has the miner's share price. There was disappointing news yesterday, when Petropavlovsk said it predicted that its full-year gold output would be at the lower end of previous guidance, and that its first-half output fell by 26%. Even so, the recent sell-off is unjustified, so buy says the Independent.
The plastic packaging supplier RPC cheered investors recently with a trading statement that showed its revenues, sales and prices were all up. It trades on a multiple of just 8.7 times forecast earnings for 2011. RPC is either as cheap as (plastic) chips or there's a sting in the tail they're not telling us about. Buy says the Independent.
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