Tuesday tips round-up: Informa, Serco, Premier Foods

30th Jun 2009 06:42

FTSE 250-listed Informa has a solid business, whose publications tend to be in niche, subscription-based titles that do not suffer as badly as its more commercial counterparts in a downturn. Its Academic and Professional & Commercial divisions are still growing, and management has also kept a tight control on costs. Hold says the Independent.Serco has secured a £180m five-year contract from the Australian Government yesterday to run seven adult immigration detention centres across the country. Looking out for the imprisoned and unemployed are not the sort of niches that might set pulses racing, but the momentum behind the trends in public sector outsourcing that they represent remains strong. On 16 times current-year earnings ? a discount to Capita, its rival ? there is every reason to hold on says the Times. Premier Foods' near-term attraction is a neat split between branded and own-label foods, providing protection against consumers trading down, and a repaired balance sheet. However, at 37½p, or seven times earnings, and no dividend on offer, the shares are no more than a hold says the Times.Some brokers have questioned the sustainability of Hovis baker Premier's operating margins, particularly in its grocery division. However, its shares trade on a forward price-earnings ratio of 7.4 times and they are fairly priced. Hold says the Independent.It says something about Asos's stellar record that sales growth from the online fashion retailer of 52% over the past two months is considered a disappointment. The longer-term buy case rests on Asos's ability to replicate its domestic success overseas. At 361p, or 21 times earnings, look to buy lower down says the Times. Consumables maker Bunzl shares have been left behind in the recent market rally and growth fears appear overdone. They are trading on a December 2009 earnings multiple of just 9.4 times and yielding a secure 4.3%. The shares are a buy says the Telegraph.Yesterday, Centamin Egypt said it had achieved what it had been working towards for the past 14 years. The mine is now functional and gold is being produced with the first gold bar poured from its Sukari mine. Hold the shares for now as a lot of good news is in the price says the Telegraph.Titan Europe, which makes wheels for everything from tractors to mining trains, as well as tyres and braking systems, has been hit hard by the recession. Last August, its shares were more than 160p. Since late October they have never broached 35p. With only ambiguous signs of economic recovery anywhere, and little but grim news from the eurozone, Titan is a sell unless you have a long time to wait. Sell 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.