LONDON Thursday tips round-up: BP, BG, Sage

BP unveiled a $32.2bn (£20.7bn) charge related to the oil spill on Tuesday. This is not a full and final figure for the costs involved in the catastrophe, but a rough assessment. The Telegraph feels that a hold rating on the shares is appropriate. If you want to put new money into the sector and generate income, buy Royal Dutch Shell. 

BG shares have underperformed over the past 18 months, held back by the low gas price. Analysts have them on about 14 times’ this year’s earnings and on a 25 per cent discount to net assets. Hold, tuck away on further weakness, says the Times. 

There is an opportunity for profiting from Sage: as the market recovers as the group has lagged its peers since the last quarter of 2009. Jefferies puts its price at just 12.9 times forecast full-year earnings, a 40 per cent discount to rivals. Take the hint. Buy, says the Independent. 

Croda's interim numbers beat expectations and the group upped its dividend payment by an impressive 50pc. The organic growth story continues and the dividend story is strong. The shares remain a buy, although new investors may wish to wait and see whether there is any post-result pull-back in the price before diving in, says the Telegraph. 

Over the past couple of years, real volumes have been falling by about this rate, but BAT puts this down to the recession and believes that economic recovery will see them start to rise by perhaps 0.5 per cent a year. The dividend is up a thumping 19 per cent to 33.2p, the policy being to pay about a third of the year’s payment at the halfway stage. BAT shares have done rather well this year and sell on about 13 times’ forward earnings, but there is the buttress of a 5 per cent yield. Hold, says the Times. 

Given yesterday's results, perhaps it's no wonder that the Lloyds Banking Group performed a U-turn on its pledge to sell its near 60 per cent shareholding in St James's Place Capital. The specialist life insurer and fund manager's sales came in well ahead of the City's forecasts. At a 17 per cent discount to Panmure's estimate of the shares' 2010 embedded value, the Independent says keep buying. 



Yesterday there were further signs that the turnaround is gathering strength 
when Renishaw issued full-year figures, posting a threefold rise in adjusted pre-tax profits. The news on the order book and the company's outlook statement were just as pleasing, suggesting continued strength in the months to come. Nonetheless, the Independent is still a backer of the company. It would confidently recommend buying Renishaw on any signs of weakness. Otherwise hold for the long-term potential.