Tuesday tips round-up: Dunelm, Cranswick, LMS Capital

14th Jul 2009 06:43

Dunelm Group's share price performance over the last year is almost a mirror image of that of most retailers. The out-of-town homeware group has seen its stock gain 80% in the last 12 months as a series of upbeat trading updates and results have made the group the belle of the retail sector. Numbers yesterday were predictably good, but beat the estimates of most analysts, sending the stock up by 11.8%, even so this is not the optimum time to buy the shares. Hold for now says the Independent.The bigger attraction is Dunelm's roll-out potential, which, given £21m of net cash and its stepped-up plans to open ten stores in its new financial year, remains firmly intact. At 235½p, or 14 times earnings, hold on agrees the Times. Cranswick says that the last six months are among the strongest the group has ever seen, and while the hot weather of recent weeks has given the company a fillip as people opt for more barbecues, consumers are increasingly recognising the health benefits of pork. Hold for now says the Independent.The shares are trading on a March 2010 earnings multiple of 9.9 times, falling to 9.2 times next year. The shares are yielding 3.7%, which looks secure because of the group's good cash generation. Buy adds the Telegraph.LMS Capital is best considered a miniature 3i, without the balance sheet baggage. It has no direct debt and virtually no debt in its investee companies. It also brings a diverse geographic and sectoral exposure that private investors might struggle to replicate themselves. A 50% discount to net asset value per share means the scope for capital growth is sufficient compensation for the lack of dividend. Buy says the Times.Venture Production shares are trading below Centrica's offer price, so the market is not pricing in a done deal for Centrica. If the offer does not happen, the shares are likely to fall - but the business is sound, well managed and strategically important to the UK. For now, the stance is hold says the Telegraph.Resilience is a common trait of Low & Bonar's products, such as the PVC-like material that covers the O2 and the Mound Stand at Lord's. At 24½p, or less than six times earnings, and dividend payments set to resume next year, tuck away says the Times.PR firm Huntsworth is doing well despite the recession. The group expects full-year profits to be close to, or slightly below, last year. Clients want more for their money and, of course, everyone is keeping an eye on bad debts.Even so, the Independent is impressed by the group's performance. Buy. 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.