Thursday's tips round-up: Northern Foods, Topps Tiles, Speedy Hire

28th May 2009 06:14

Northern Foods shares are now trading on a March 2010 earnings multiple of 9.7 times, falling to 9.1 in 2010. This does not look too demanding after it recent restructuring. With a cracking yield of 7.3pc to support the shares, they remain a buy despite the relatively low dividend cover, says the Telegraph. The Times says hold.Topps Tiles shares were having a stellar quarter, up 177 per cent, even before yesterday's numbers. The Independent would take the opportunity to take profits. Sell. The Times says at 15 times earnings, and with no dividend on offer, the shares are up with events. Pass.The measly valuation of Speedy Hire shares will encourage some, as will yesterday's full-year results, which showed a 29.5 per cent drop in adjusted pre-tax profits, which were in line with expectations. It is impossible to back the shares, however, given the grim outlook. There are better places to put your money. Sell, says the Independent.Kentz's $115 million of cash gives it scope to fulfil its ambition in expanding offshore. Meanwhile, it is well placed to export its expertise to LNG markets, such as Australia and Papua New Guinea, where capital spending is starting to build. At 143½p, up 3½p, or four times earnings once the cash is ignored, buy on weakness, says the Times.While accepting that, in its sector, BSS is emerging as an outstanding name, the Independent says it would be happier to invest in markets that are showing signs of growth, rather than simply predicting them. According to the Panmure Gordon watchers, BSS yields just 2.8 per cent and the Independent says it would be looking for more than that to take a punt on what remains a fragile sector. Hold for now.The Telegraph says until Royal Dutch Shell gives confidence on future production, Questor maintains a hold stance.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.