Thursday tips round-up: Marstons, British lenders, Dunelm

4th Oct 2012 07:08

The Times Tempus column tips Marston's, which is investing spare cash in new-build freehold pubs offering informal eating and drinking in a pleasant environment. The benefit of this strategy was evident in yesterday's pre-close trading update. Marston's revealed that a revaluation of its pub estate had valued the new food-led pubs built since 2009 at a premium to construction cost of more than 50 per cent. Although the pub industry has yet to see any signs of a sustained recovery, when it does Tempus thinks Marston's will be near the head of the field.In the glue factory of European banking, British lenders have in recent years earned the dubious distinction of being among the best looking horses. The main reason for this is that having had their crisis four years ago, British banks were forced to muck out their stables with a sense of purpose and thoroughness their Continental peers have yet to discover. If the sky falls in and the world experiences a new crisis, then British banks will be among the best banking sector shares to own, though obviously having no exposure at all would be preferable. However, if doomsday does not come and the Eurozone holds together, then investors with UK bank shares could find themselves rewarded for their perseverance as valuations start to recover and dividends begin to flow again. For those who would dare to go wandering round the glue factory to find their nag, the British representatives could well be among the best horses to ride until this crisis is well and truly over. Hold, Questor says. Tempus writes that Dunelm Group is now the country's largest homeware shop, and plans to expand the number of its stores to 200 from 118 over the coming years. It states that the shares look to be more than a mere safe haven in a rocky sector. Trading at 14.6 times next year's profit forecast it advises that a few more shares could furnish a portfolio.ABPlease 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.