Thursday tips round-up: Asos, Land Securities, JD Wetherspoon

20th Jan 2011 06:33

Shares in the online fashion retailer Asos have almost quadrupled since February, but some brokers believe they are near their peak. If Asos can continue its explosive growth, then that massive rating is justified and one day we could be looking at our own Amazon or eBay. But this is not a stock for widows and orphans, according to the Times.Hardly surprising for Britain's biggest property developer, but the past two years have not been pleasant for Land Securities. Last September Land Secs posted net assets of 737p a share, a discount to NAV at last night's price of about 5 per cent. This is a little better than its two big quoted peers but suggests no reason to chase, though the shares yield about 4.2 per cent. Hold, says the Times. Bosses Land Securities have been feeling rather chipper this week. Investors should be pleased with the healthy 2011 target dividend yield of 4.2 per cent, but rival British Land offers 5.2 per cent. In truth, the shares look more or less fairly valued. There should be some upside but it depends on the economy. Worth holding, then, the Independent thinks.JD Wetherspoon pubs, as anyone who has gone into one cannot fail to notice, are startlingly cheap. When the finance director and chief operating officer of Wetherspoon walked out in October after an unspecified row with the founder Tim Martin, there was a suspicion that this was over whether to keep investing, keep prices low and accept some margin dilution or instead cut costs. The average forecast puts the shares on 13 times this year's earnings. About right, given the uncertainties, says the Times.Its shares on a forward-earnings multiple of 13.6 are also not all that cheap anymore. But the Independent believes Wetherspoon's, which will open about 50 new pubs this financial year, is well placed to prosper in a tough trading environment. And with crackdowns to come on supermarkets selling cheap booze, we'd stick with JD and buy, the newspaper recommends. 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.