Sunday tips round-up: Barratt Developments, RSA, Greene King...

27th Feb 2011 11:59

There is no doubt that the UK housing market is in trouble. However, an investment in Barratt Developments is not a play on a recovery in the market - it is based on increasing margins.Because the group snapped up land cheaply during the downturn, if prices stay flat then margins will increase. Also, analysts have calculated that the group is trading at an approximate 50% discount to net asset value, which means the shares appear to be discounting Armageddon. The shares are trading on a June 2011 earnings multiple of 41.3, which is high, but this falls to 13.8 in the year to June 2012. Buy says the Telegraph.RSA Insurance is a yield play, with a prospective yield of 6.6%. It is covered 1.5 times by earnings, which is low, but it should still be secure. Buy says the Telegraph.Pub group and brewer Greene King's acquisition of Blackburn-based pub restaurant group Cloverleaf marks a further step in the group's strategy of expanding its food operations. The strategy has helped deliver rising sales, profits and dividends while rivals struggle. With dividends set to total 22p this year, the group is yielding 5% at the current price. Buy says the Mail on Sunday. Retailer Mothercare issued a profit warning earlier this year that sent its shares crashing. The growth prospects for the group are abroad where it already derives half of its sales. Cautious investors should cap their losses now but hold if you are willing to invest for the long term says the Mail on Sunday. Primary Health Properties is an excellent share to own for investors seeking income. The prospective yield in 2011 is 5.5% and the company has long leases on its properties, meaning this income stream should be secure for many years. The company is one of the largest providers of GP surgeries, pharmacies and other medical facilities across the country. It has a relatively low risk model because it builds properties to order, not speculatively. Buy says the Telegraph.Kier's construction and outsourcing business appears to have a very low valuation indeed when the value of its land bank and the group's cash balances are considered, Of course, the risk is what management do with the cash. The shares remain a 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.