Thursday tips round-up: Balfour Beatty, BHP Billiton, Mitie

13th Aug 2009 06:07

Balfour Beatty has an enviable balance sheet, a strong order book and diversified income streams. It is likely to be a beneficiary of infrastructure spending in continuing stimulus packages and fears about future public spending have been overdone over the past few months. The shares remain a buy at these levels, according to the Telegraph.At 8 times next year's earnings, and yielding a solid 4 per cent, hold on, adds the Times. The Independent reckons investors should buy the stock. The shares do trade on a discount to the rest of the sector, but with £12.5bn of secure orders on the way, we reckon the stock will head north. Buy.For some time now, plenty of companies, both in the mining sector and elsewhere, have pinned their hopes on the emerging markets, specifically China and India. Whacking great big GDP figures, and seemingly insatiable demand, meant until recently group's such as BHP Billiton could rely on some very big orders.There is no getting away from the fact that yesterday's numbers were bad, even if expected. The Independent would be prepared to wait until the full impact of the Chinese stimulus package has worked through before jettisoning the stock. Cautious hold.For a company once best known as a hoarder of cash, Mitie Group seems to have no aversion to spending it. Yesterday, the FTSE 250 support services specialist put an end to months of speculation by buying the technical facilities management division of Dalkia, part of France's Veolia.Dalkia's appeal is limited by its price, which at a multiple of ten times operating profits, is not obviously cheap. Yesterday's £43 million share placing to part-fund the deal is also likely to mop up short-term demand for Mitie's shares. But, given the estimated 9 per cent boost to next year's profits, and Mitie's strong track record of integration, the shares, at 235p, or 12 times next year's earnings, should be bought on weakness, says the Times.The assets that HSBC Infrastructure Fund invests in are at their operational stage, which means that their income streams are predictable. The company may look further afield in the future, but for now this looks like one of the most conservatively managed infrastructure funds around. Investors should buy these shares for the income, says the Telegraph.The opportunity now is for Aquarius to use its financial strength to buy platinum group assets in adjacent territories at reasonable prices. The problem is that South Africa remains susceptible to power supply problems while short-term movements in platinum prices are hard to divine. This suggests that, at 268½p, or 20 times 2010 earnings, and with no dividend on offer, there will be better times to buy, according to the Times.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.