Thursday tips round-up: Tullow Oil, Carillion, Cape

9th Jul 2009 06:05

The Independent reckons Tullow Oil is a risky bet, which is not helped by volatile oil prices, but said the company offers enough for a speculative punt. Buy.The Times says the longer-term issue of how Tullow will commercialise its Ugandan discoveries remains. Yet, at 863p, a busy drilling programme in West Africa in the second half of this year and the prospect of steadily rising production revenues after this year's blip give reasons to hold on.After forecasting double-digit profit growth in 2009, Carillion's earnings next year should slow ? while the prospect of a general election, causing a likely hiatus in public sector decision-making, is set to provide a further drag. But at 252p, or less than seven times earnings, and yielding 5.4 per cent, those concerns are already priced in. Hold, says the Times.It may be because of Carillion's exposure to the construction industry that it is rated lower than others in the sector, but the Independent would argue that trading on 6.5 times 2010 consensus earnings estimates, and yielding 5.6 per cent, the shares have room to improve. Buy.Cape does not pay a dividend. However, with revenue visibility improving and the company continuing to win new contracts and positive moves on the debt position, the shares remain a buy, according to the Telegraph.Telecom Plus is prospering even in times of cheaper oil and gas. Recession and the search for alternative sources of income have helped it to accelerate the rate of recruitment of its distributors, up 10 per cent over the past three months to 30,000. That is important, given that their number is a reliable indicator of future sales. However, at 284½p, or 16 times earnings, and the shares trading ex-dividend tomorrow, there will be better times to buy, says the Times.For an author, the Booker Prize is about as good an accolade as it gets. For an investor, its shares are not such a bad result either. The fact that analysts at Evolution say there is room for further growth in the price only strengthens Booker's case. Buy, says the Independent.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.