Friday tips round-up: Go-Ahead, Halma, Marston's

4th Dec 2009 06:40

Bus and train group Go-Ahead is retaining some legacy contracts at Heathrow that are scheduled to run until 2011, and it is holding on to the Meteor car parking business, but the focus is firmly on public transport. Cue the acquisition of Plymouth CityBus, which has a fleet of more than 170 buses and carries about 14 million passengers every year. Taken together, it is all good progress. And while Go-Ahead may not have the global reach of rivals such as First Group, it has fine prospects. Buy says the Independent.Engineer Halma is one of only three British companies to have consecutively raised their dividends in each of the past 25 years. At 243¼p, Halma trades at 15 times earnings, a premium to its sector. But that rating seems deserved given the low volatility of operating margins, the resilience of profits through good times and bad ? and the consistency of its dividend policy. Hold says the Times. Hedge fund BlueCrest AllBlue produced one of the best performances in its sector in 2008, with net asset value up 13 per cent in a year in which hedge fund indices fell more than 20%. In common with its peers, AllBlue, down ½p at 152¾p, pays no dividend. But its ability to generate capital growth irrespective of stock market volatility makes the shares a long-term buy says the Times.Brewer and pub group Marston's shares look shares look reasonably priced, trading on a 2010 price-earnings ratio of nine, but it could Marston's a long time to turn around and recommend investors treat it with caution. Hold says the Independent.Redhall does difficult things in places where others may not wish to go ? complex engineering and maintenance tasks in "high hazard" areas. It has skills that are likely to become in increasingly short supply, given Britain's nuclear ambitions. The need to supply security-cleared engineers also provides a barrier to entry. Either Redhall's shares will be re-rated, or a larger rival will swoop. Buy says the Times. Domino's Pizza is a well run company that produces a significant amount of cash - that's why the shares are trading on such a high rating. They are currently trading on a December 2009 earnings multiple of 22.8 times, falling to 20.6 next year. The yield is a relatively uninspiring 2.4%. There is a risk that the trend for eating in rather than eating out will reverse as economic prospects brighten, but that is still some way off. Buy says the Telegraph.Dentsply is one of the world's largest suppliers of dental products and should benefit from this trend. The shares are trading on a December 2009 earnings multiple of 18.4 times, falling to 16.7 next year, which is pretty full. Take profits says the Telegraph.Yesterday's first-half results cannot mask the fact that plant hirer Ashtead operates in a tough industry. Pre-tax profits before discounts fell to £20.1m from £76.6m the year before. Secondly, after a revival in the equity markets in recent months, brokers suggest the stock is too expensive. Hold says the Independent.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.