Date: Tuesday 10 Aug 2010
Wm Morrison, the supermarket chain, trades on a 2011 price to earnings ratio of 11.9, which makes it one of the cheapest European food retail stocks.
Morrisons will face a constrained consumer over the next year, but its plans to become a "nationwide" grocer by further expanding in the south, progressive dividend policy and robust financial position make it a buy says the Independent.
Morrisons will face a constrained consumer over the next year, but its plans to become a "nationwide" grocer by further expanding in the south, progressive dividend policy and robust financial position make it a buy says the Independent.
If investors are looking for a punt on the construction sector Morgan Sindall might not be a bad bet, especially as the group maintained its 12p dividend yesterday, giving investors a chunky 7.5% yield. With cash up 55 per cent to £138m, and a forward order book £500m healthier (at £3.7bn) than at the start of the year, this yield is well protected. Hold says the Independent.
Hill & Smith, which makes crash barriers for motorways, is hoping that government cuts do not cause an accident for its backers. The company said yesterday that profit in the first half of the year jumped by 4.9%, helped by a rise in overseas orders. But the chief executive , Derek Muir, said that the firm's full-year earnings would be hit to the tune of £15m to £20m as the Government eyes up transport for a painful dose of public spending cuts. Avoid says the Independent.
Hill & Smith shares trade at around seven times earnings and yield about 4.5%— but the spending review could put pressure on their price in mid-October. If the shares continue to weaken, it may present an opportunity for the longer term. Buy says the Times.
Taken in isolation, the sale yesterday by Mitchells & Butlers of its ten-pin bowling business for £39m does not move the dial in any significant way. But in the context of the strategic path laid out by John Lovering, the former Debenhams boss parachuted in as chairman in January, it is a key stage on the road back to stability and credibility. One concern is the combined 40% stake held by Joe Lewis and the racing tycoons JP McManus and John Magnier, but, in time, M&B may put the travails of the past three years behind it and once again become a normal company. Buy says the Times.
Shares in RM have fallen by almost a third, from 195p at the end of June to 137p yesterday and the stock is cheap as it trades at 8.4 times earnings. However, only 12% of its revenue is derived outside the UK — which pales in comparison with Promethean, Britain’s other listed education technology play, which derives less than 10% of its revenue on home soil. Hold on to RM until it expands its horizons says the Times.
source:digitallook
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