Friday tips round-up: Booker, Investec, Great Portland

21st May 2010 06:48

There is cash in cash and carry ? at least at Booker, which showed black ink on its balance sheet yesterday for the first time since returning to the stock market three years ago. At 40¼p, the shares are trading at 12 times current-year earnings ? not stretched, given the combination of strong earnings growth and cash generation. Buy says the Times.The difficulty for investors in engineer Rotork is that at 17 times 2010 earnings, it looks fully priced. The broad range of niches within energy and power generation that it serves means it never suffered the sort of precipitous drop in sales felt by its sector peers. At yesterday's £13.34, time to take some of profits says the Times.There was much to like about the results from Investec, the Anglo-South African banking and fund management group. The company's asset management business has been performing rather well. Trading on a forecast multiple of just under 10 times, against a long-term rate of about 11.8 times, they look to offer decent value if the company can continue its progress and if its loan losses remain on the downward trend they were showing in yesterday's statement. Buy says the Independent. Great Portland Estates has the advantage of having one of lowest loan-to-value ratios in the property sector, along with £477m in undrawn facilities to push into the market. It's time to buy says the Independent.Sir John Rose, the chief executive of turbine maker Rolls-Royce has sold about half of his shares in the company. The shares are now trading on a December 2010 earnings multiple of 15 times, falling to 13.6 next year. Investors should follow Sir John and sell says the Telegraph.The woes in the Gulf of Mexico have turned the spotlight back on safety in the oil and gas industry. And that is exactly the space in which Cape, the provider of maintenance services to the energy sector, plies its trade. The shares should be helped by a planned return to the dividend list this year ? analysts have pencilled in a payment of 6p a share, equivalent to a 3 per cent yield ? and a move from AIM to the main market, where Cape is a candidate for the FTSE 250. At 205p, down 19¼p, buy on weakness says the Times.With defensive-looking revenues and at a time of increasing contract wins, Cape is a compelling investment case. Buy says the Independent.Brit Insurance shares shares are trading on a December 2010 earnings multiple of 7.3 times, falling to 5.8 next year. They are a buy for the 8.1% yield in turbulent times writes the Telegraph.Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.