Friday tips round-up: WH Smith, Hyder Consulting, Halma

14th Jun 2013 07:17

WH Smith´s latest trading update was underwhelming to say the least, showing a 7.0 per cent fall in like-for-like sales at High Street stores for example. Yes, there was a one-off factor in the form of very difficult comparables with last year and the company continues to reward investors with share buy-backs. However, for now it continues to face stiff competition from rivals, while changes to its operations will take time. Then there is the exit of its Chief Executive, which the market has not taken well. Her replacement, Steve Clarke, is considered a safe pair of hands, but successions can be difficult to pull-off, as investors at Greggs know all too well. The market may need some persuading before the shares start to rise again, so hold says The Times´s Tempus. Hyder Consulting has solid prospects and is inexpensive.The group's businesses are plugged into some major bullish investment themes. These are urbanisation, increased investment in mass transit schemes worldwide, low carbon design to tackle climate change and water and power scarcity. Reflecting that, the company was able to raise its dividend pay-out by much more than was expected, by 33%. The shares are trading on a 2014 earnings multiple of 9.8, falling to 9.3. This does not seem overstretched for a company which has put in such a strong underlying performance. The Daily Telegraph´s Questor team thinks the recent fall is a buying opportunity.Halma is a very diverse outfit, operating in multiple business segments, but with one common denominator, it is focused on 'niches'. That has seen the company log ten successive years of record results and raise its dividend in 34 out of its 40 years of trading. Bluntly put, that explains why the stock sells on an expensive 17.5 times this year's earnings. Yet there seems no reason why this rate of progress cannot be maintained, Tempus writes. 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.AB