Tuesday tips round-up: BAE Systems, AB Foods, CSR...

14th Sep 2010 06:50

BAE shares have been poor performers since the start of 2009 and various analysts believe the fall has been overdone. Further clarification in the spending review might set nerves at rest, but for now BAE shares sell on a relatively inexpensive seven times this year's earnings with the buttress of a yield approaching 6%. Buy says the Times.Another slowdown on the high street will only spur demand for AB Foods arm Primark's offerings, so growth should tick back up in due course, driving higher earnings for the group as consumers turn away from more expensive retailers. ABF's other businesses are also doing well, while its shares remain affordable. At 14.6 times prospective earnings for 2011, this horse will continue to gallop ahead of its peers. Keep buying says the Independent.Share buybacks are not usually a tactic of cash-hungry high-tech companies. Yet CSR is to spend $50m buying back its own stock, a move designed to kick-start the Cambridge semi-conductor maker's sluggish share price. Concern, though, over the long-term picture has not eased and there are new fears about CSR's ability to win back market share in the smartphone market with its new product set. Hold on for a better entry point says the Times.Gold miner Centamin, which started mining at the beginning of the year, will now miss this year's 200,000 ounce production target by 15 to 20% this year, although it is still on track to achieve next year's forecast ? 500,000 ounces. The shares are trading on about 1½ times' net present value, which is conservative for the sector but reflects the relatively unproven nature of the assets. Hold says the Times.There is plenty of growth in the PZ Cussons' emerging-markets businesses, particularly Nigeria. But with an uninspiring dividend yield of 2% and a stable share price, just a hold for now says the Independent.Galleon Holdings has no involvement in shipping. It is a media entertainment company that makes reality shows, drawing a return from selling them to emerging markets. It had a tough start to the year, making a half-year loss of £700,000, but brokers expect profits at the full year, when the effects of an overhaul in China kick in. Trading on eight-times-forecast full-year earnings, it's hardly expensive and while not for the risk-averse, it's a buy for those of a mind to speculate 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.