Tuesday tips round-up: Ithaca Energy, Amlin

5th Mar 2013 07:29

Oil explorer Ithaca Energy was off a touch on Monday, after having taken a hit on Friday, when it announced the purchase of Valiant Petroleum. While some nerves may be understandable the oil team at Westhouse Securities points out that the fact the deal could pay for itself in two years may have been overlooked. In fact, the transaction could see Ithaca become a target in its own right.Amlin, the biggest listed UK insurer, was one of the worst hit in 2011 because of its heavy exposure to Asia, including the unfortunate events in Japan and the New Zealand earthquakes and the Thai floods. That forced the company into a £193.8m loss in 2011 and into paying an uncovered dividend. For last year however its combined ratio improved notoriously, to 89% from 108% in the year before. Furthermore, it seems to have managed to turn around its European operations, including those acquired from failed Belgian outfit Fortis in 2009. The shares sell on little more than eight times' earnings and yield just short of 5.7%, making them among the cheapest in the sector. Attractive for the yield alone, Tempus says.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.