Tuesday tips round-up: Telecity, Ryanair, Vantis

3rd Nov 2009 06:41

Telecity designs, builds and operates data centres ? warehouses, if you like, albeit ones that contain racks of computers that require vast power supplies and links to multiple telecoms carriers. Telecity enjoys a high proportion of recurring sales and, with mostly fixed operating costs, strong operational gearing. Hold on says the Times.Telecity's price to earnings ratio is 10 times the estimates of full-year 2010. That's not demanding. The stock can go higher says the Independent. Buy.Oil explorer BowLeven plans to sink four wells next year, the busiest drilling campaign in its history. At 86¾p, the shares are unlikely to travel too far until drilling gets under way. But BowLeven is also one of the few stocks in its sector that has the potential to double or treble by the end of next year. Worth a flutter says the Times.Aim-listed accountant Vantis secured a big mandate in the course of the year: as joint liquidator to Stanford International Bank, handing it the job of tracking down the $7bn that went missing through an alleged fraud by Allen Stanford, the American financier. Such work is lucrative, but the long gap between starting work and getting paid inevitably puts strains on working capital. Avoid says the Times.Vantis, the quoted accountant, has become embroiled in one of the more intriguing financial controversies of recent times, which has rather flown under the radar. Upcoming court cases limit what can be reported, but it basically involves the use of rules designed to encourage charitable giving. The recovery operation will do well, but the Independent wouldn't be investing at this time. Avoid.Ryanair is well placed to weather further weakening in passenger demand. Ryanair has net cash of more than €2.5bn (£2.3bn) and a diverse mix of 950 routesIf the deal is done with Boeing over new aircraft, investors are in a position to benefit from a robust business facing improving customer demand. If the deal isn't done, Ryanair's growth may stagnate but shareholders should enjoy healthy dividends from a company with significant cash on its balance sheet. Buy says the Telegraph.Chloride, which provides guaranteed power supplies to the likes of Heathrow Airport's Terminal 5 and Arsenal's Emirates stadium, has not had a bad recession. Don't expect a huge windfall in the short term, but the prospects are good slightly further out. Buy says the Independent. As soon as the global economy starts motoring, Chloride is well-place to soar. But, the shares, on 14.5 times earnings are an expensive play due to rumours that America's Emerson Electric, which put in a 270p takeover bid last summer, might be planning another approach. If you've got the shares already you could be on to a winner, if not hold out until bid speculation dies down says the Telegraph.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.