Tuesday tips round-up: Elementis, Genus, GW Pharmaceuticals

5th Jul 2011 06:36

Elementis traces its roots to 1844 and the Harrisons & Crosfield tea and coffee trading conglomerate, but it took its present shape in 1998, when the company focused on chemicals found in substances such as paint, cosmetics and, more recently, shale gas wells, where the flow of a substance needs to be controlled. Elementis, which trades on 15 times Brewin Dolphin forecasts, has shed its volatile past and consistently overdelivered on the earnings front. It looks to be in its element and could flow higher, says the Times.When it updated the market back in May, Genus, the Basingstoke-based group - which supplies both breeding pigs and high-quality bull semen to farmers - said it was on track to beat the previous 12 months, and yesterday's brief pre-close trading statement ahead of September's full-year results confirmed that view. Yesterday, the shares dipped 8p to 1,032p, but after gains of 20 per cent in 2011 - and more than 100 per cent over the last two years - we suspect some profit taking. The support behind the stock remains. Buy, says the Independent.GW Pharmaceuticals fell yesterday, despite launching its key product Sativex in Germany. That, perhaps, reflects the company's transformation from a plucky biotech plugging away at its cannabis-based treatments to a fledgeling pharmaceutical company after the full commercial launch of Savitex in Britain last year. a further re-rating is by no means guaranteed. Approach with caution for now, says the Times.Detroit has emerged as a new base for growth for the IT services company Datatec, which has bought out its Michigan-based rival Netarx. The stock has hit an all-time high of 350p in recent weeks and trades on the relatively cheap rating of 12.3 times consensus earnings. Enthusiasm is curtailed by its illiquidity on UK markets, but a Computacenter trading statement next week could reignite interest in the IT sector, says the Times.Life is not easy for the brokers who make their living looking after the smaller and medium-sized companies that bulge bracket investment banks largely turn their noses up at. The market for flotations and M&A work has certainly improved from the dark days of the credit crunch, but the good times are a long way from being back. That is reflected in the way shares in Cenkos Securities have performed. These shares are starting to look cheap at about eight times forecast full-year earnings. The dividend was cut last year, but should be raised if earnings improve, although yield is not something to count on. There is a buying opportunity here for those willing to roll the dice, 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.