LONDON Friday tips round-up: Rolls-Royce, Aegis, Travis Perkins

Date: Friday 30 Jul 2010

  Rolls-Royce  is among the FTSE 100's band of defensives. The shares trade on a multiple of 15.5 times forecast earnings for 2010, putting the stock at the top of end of its historic range. 

While that may worry some, it's just a reflection of the market's preference for what is a relatively safe and promising investment. Keep buying says the Independent. 

The news from gold miner Centamin Egypt yesterday was mixed, as production fell in the latest quarter. However, management believe that it will meet full-year targets as production is ramped up through the rest of the year. The shares are trading on a June 2011 earnings multiple of 12.9 times, falling to 9.2 in 2012. Buy says the Telegraph.

Tobacco group BAT shares are trading on a December 2010 earnings multiple of 12.8 times, falling to 11.8 next year. With a solid prospective yield of 56.1%, which is expected to grow to 5.5p% in 2011, the shares remain attractive for income seekers, says the Telegraph.

At 236¾p, bus and train group National Express is trading at about ten times this year’s forecast earnings, in line with its peers. To get on board now ahead of October’s Comprehensive Spending Review and the detail of future departmental spending looks reckless. Those who have had the full benefit of a 40% surge in the shares since the winter may lock in some profit, suggests the Times.
Aegis has followed up its purchase of a stake in a Chinese buying and advertising agency earlier this year with the A$363m (£207m) purchase of Mitchell. The shares sell on about 11 times this year’s earnings. Expect some volatility as the Mitchell deal shakes out, but a good hold for recovery says the Times.

Geoff Cooper, the chief executive of Travis Perkins, sums up the market for building materials thus: “from appalling in 2009 to miserable now.” He is not looking for any great bounce in the short term. The shares are on 11 times this year’s earnings, but further progress, as in building as a whole, looks to be slow suggests the Times.

Bingo has often been the butt of jokes about the blue-rinse brigade and the inhabitants of sink estates over the years, but it appears to be making a comeback and more of the population seem to be calling out "legs eleven". The gambling groupRankFinsbury Foods'performance yesterday as it reported a fall in revenues in the year to June. Efficiency savings have enabled the group to deliver profits in line with expectations, while the company is operating within its banking limits. There is no divi, but the stock trades on a price-earnings ratio of just 2.6 times – it is still as cheap as chips. Buy says the Independent. 

There were no candles to blow out on a cake to celebrate Finsbury Foods'performance yesterday as it reported a fall in revenues in the year to June. Efficiency savings have enabled the group to deliver profits in line with expectations, while the company is operating within its banking limits. There is no divi, but the stock trades on a price-earnings ratio of just 2.6 times – it is still as cheap as chips. Buy says the Independent.