Tuesday tips round-up: Standard Chartered, SABMiller, Hardy...

19th Oct 2010 06:41

Is Standard Chartered the world's best bank? It has been said in some quarters, and quite seriously. StanChart has grown profits year on year and, while it didn't exactly laugh in the face of the financial crisis, it sailed through it more smoothly than virtually any other Western bank.On 15 times full-year earnings, though, StanChart is anything but cheap with a prospective yield of just 2.3%. Standard is a very good bank but its shares sit at an enormous premium and, while it wouldn't put anyone off from holding the stock, there are opportunities to make better returns out in the market at the moment suggests the Independent.SABMiller, one of the world's largest brewers, yesterday became the latest multinational to raise a glass to soaring sales in emerging markets, which offset a decline in its more mature territories. The shares, which have soared this year, jumped again yesterday to close just shy of a 12-month high of 2088p. As a result, they are starting to look relatively pricey on a forecast multiple of 18.6 times 2011 earnings. Just a hold, says the Independent.Nanoco makes quantum dots. Quantum dots can actually be found in televisions, and are causing quite a stir among television manufacturers. The reason? They offer better colour quality and brightness than white LEDs and use less power. Nanoco has already succeeded in signing up a string of clients in Japan, and now the talk is that it could land contracts in South Korea. The numbers were on track, with revenues rising from £1.9m in 2009 to £2.9m in the year to 31 July. While the losses rose, analysts are expecting profits by 2012, so buy says the Independent.Yesterday Beazley, the marine and commercial property specialist, revealed that it had made a 300p-a-share approach to Hardy Underwriting, valuing its smaller rival at £155m. Hardy seems to see the logic of a combination but has dismissed the proposal as far too low. Beazley needs to move swiftly to ensure that the spotlight does not turn on what might be seen as its own weaknesses. This deal will be all about price, as judged by Hardy's shareholders. Watch from the sidelines says the Times.Car dealer Vertu shares powered 5p ? or 17.9%? higher yesterday to 33p, putting it on almost 12 times this year's prospective earnings. January's VAT rise and consumer jitters are cause for caution. Avoid say the Times.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.