Sunday share tips: Invensys, BT Group, Centamin

12th May 2013 20:59

Engineering outfit Invensys seems to have finally gotten its hands around its problematic pensions deficit, such that it is no longer a deterrent to would-be investors. In fact, should the company maintain its guidance for its pensions deficit steady - when it unveils its annual results - that may well clear the last remaining obstacle to a bid. In fact, once a premium is factored in then the bid price could reach about 4bn pounds - with Schneider Electric of France and America's Emerson thought to be the most likely suitors. Ironically, that would suffice to clean out said pensions liabilities. No surprise then that the company´s share price has doubled in the last twelve months, writes The Sunday Times´s Matthew Goodman. Those who think the government is not about to truly rain on big pub companies´ parade may want to "settle in at the bar" at Enterprise Inns. Yes, bad weather at the start of the year and political meddling may take their toll but far more important is what the company will say about current trading conditions when it delivers its interim results this week, on Tuesday. That comes as the debt-laden company has been offloading pubs to raise cash and re-organising its finances after the recent financial crisis, The Times´s Goodman says. BT Group´s prospects are looking brighter than they have for many years, even if for now The Sunday Telegraph´s Questor team is sticking to its 'hold' recommendation on the shares. That comes despite the company having stolen a march on competitors BskyB and Talk Talk. Simply put, by offering free sports to its broadboand subscribers it may have in one fell swoop not only increased its market share in broadband but also de-valued its competitors sports businesses. Yes, Sky´s response has yet to arrive, but the above seems to be - nevertheless - correct. The shares are trading on a 2014 earnings multiple of 11.8, falling to 10.9, and with the prospective yield set to rise to 4.1. Investors in Egypt-focused gold miner Centamin reacted very poorly to Friday´s disclosure of 'negative undertones' in a report from the Egyptian State Commissioner's Office to the Supreme Administrative Court, which is hearing its appeal of a previous negative ruling on its license to exploit the Sukari mine. That seems to contradict the office's initial review and the Supreme Court's decision to suspend the administrative court ruling which allowed Centamin to keep operating. However, there appears to be no merit in the moves to revoke Centamin's licence and the company continues to operate, so embattled investors should continue to hold, Questor says, although the first hearing on the next June 19th is likely to be inconclusive. 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