Friday tips round-up: Colt, William Hill, Go-Ahead...

22nd Oct 2010 06:50

Long-term watchers of Colt Group could be mistaken for thinking of the telecoms company as a perpetual restructuring machine. Over the past decade, and under various chief executives, the business has cut costs and restructured itself on numerous occasions in order to complete its transition to a data-centric business capable of withstanding the continual decline in voice revenue.Colt has gradually moved in the right direction over the past five years and is on more stable footing than it has ever been as it both profitable and cash generative. Yet its meagre rating of 8.5 times next year's projected earnings is a reflection of both its growth profile and the dearth of dividend payments. Wait for a stronger signal that growth is around the corner before buying says the Times.After a grim early part of the year, results are finally moving in William Hill's favour, and this means that full-year profits are set to come in towards the top of the range of analysts' forecasts for operating profits of between £247m and £262m. On a rating of 8.9 times forecast full-year earnings, the shares offer value even against a slightly uncertain political and regulatory backdrop. As such we would be willing to place a bet on the shares doing well from here. Buy says the Independent.Fund manager Henderson is trading on an undemanding 13.8 times forecast full-year earnings. With the age of austerity just beginning in Britain and doubts lingering about the US, markets could stay choppy for a while. So, despite a long-term favourable view, it remains only a hold says the Independent.Debenhams provided long-suffering shareholders with some pre-Christmas cheer yesterday with its plan to reinstate the dividend at the interims in 2011. The move put a turbo-charger under the chain's shares, which closed strongly ahead. However, even for well-run retailers like this, life will not get any easier over the next 12 months because shoppers will have less money. Therefore, despite trading on a 2011 forecast multiple of just 8.3, be cautious. Hold says the Independent. The real positive from the Spending review for Go-Ahead was the fact that there was no slashing of the Bus Service Operator Grant. This will be maintained until 2012 and then cut by 20% over three years. This is a far better outcome than expected. The grant reimburses bus companies for 80% of the fuel duty on certain services that would otherwise be unviable. So, as was the theme with all the measures in the Comprehensive Spending Review, there will be cut backs, but it is not as bad as had been feared. Buy says the Telegraph.May Gurney is an infrastructure services group, so worries over austerity cuts have weighed heavy on the shares - indeed the whole sector. Things have not turned out that bad. In fact, it looks like there will be many opportunities ahead. The shares remain a buy says the Telegraph.Carillion is a construction and support services company. The shares started spiking when Mr Osborne started talking about investment in rail infrastructure. The company has a relatively small highways and rail business - so this is good news. There was a lack of specific detail in the statement, but this should come. Buy says 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.