Thursday tips round-up: Wetherspoon, Soco, Character

21st Jan 2010 06:01

The economic backdrop remains tough but Wetherspoon's value-for-money offer and unmatched retail skills will ensure that it is among the winners. At 463p, or 13 times earnings, hold on for recovery, advises the Times. The Independent agrees and says the shares are too pricey to recommend buying more, but the company is doing well, so stick with it. Hold.Soco International does not issue shares lightly. The last time that the mid-cap oil explorer raised equity was at its float in 1997 and, given its run since ? the shares closed yesterday at £14.55, up nearly sixfold from their 260p debut ? long-term backers have no cause to complain. With the uncertainty created by the convertible bond out of the way and Soco now firmly on the front foot, it is a much better prospect than before. Buy on weakness, says the Times.According to the much-loved theme tune, Postman Pat thinks he's a very lucky man. Shareholders in Character Group, which owns the rights to make toys of the Greendale postie and his sidekick Jess, may not feel quite so felicitous. Character designs, develops and distributes toys, games and gifts to 30 countries around the world. Also on its roster are Fireman Sam, Scooby Doo and, um, the Terminator. Certainly, the Terminator full head mask and voice changer is a winner (and great fun for terrifying friends and family), and this year the shares - to paraphrase the original Arnold Schwarzenegger movie - might well be back. Buy, writes the Independent.Optos, the small-cap eyecare specialist, has sharpened its focus. Under Roy Davis, its new chief executive, the Dunfermline-based company has spent the past year reversing the effects of recent expansion. That has meant withdrawing its machines ? retinal imaging devices that can map 80 per cent of the inner layer of the eye ? from locations where they are underused. Recession has played a part, too. About 80 per cent of its devices are in America and, with optometrists charging patients about $35 (£21.50) a test, its sales are clearly exposed to consumer demand. At 106p, up 10½p, or 11 times forecast 2011 earnings, hold, says the Times.Biotech is, and always will be, one of the most high risk sectors, but you could do worse than to back Oxford Biomedica. 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.