Wednesday tips round-up: BP, Segro, Dunelm

28th Apr 2010 06:36

The tragic situation in the Gulf of Mexico has taken the shine off what was an excellent performance from BP in the first quarter of the year says the Telegraph.The shares are trading on a December 2010 earnings multiple of 9.2 times, falling to 7.9 next year. They were first recommended at 487½p on February 4 2009 and are up 25% compared with a market up 32%. Buy for the solid dividend yield says the Telegraph.Commercial property group Segro offers decent value, trading at 0.84 times net asset value per share, and offering a yield of 4.4%, which should compensate for the rather inert share price. The Independent is also attracted to what the group can squeeze out of the portfolio it acquired when it bought Brixton Estates last year. Buy.While homeware retailer Dunelm's powerful rate of growth has slowed to a more modest 3% over the nine weeks to last Saturday, Dunelm said that its gross margin was up by 80 basis points over the period. Dunelm's shares have had a good run recently, despite profit-taking from investors yesterday, and trade on a multiple of 15.2 times 2011 forecast earnings. Hold for now, but buy on any weakness says the Independent.Social housing maintenance specialist Connaught is trading on just 5.9 times enterprise value-to -forecast earnings for 2011. That's too cheap. Buy says the Independent.At 550p, the recently floated African Barrick Gold trades at a discount to its issue price, and at 13 times 2011 earnings, is considerably cheaper than rival Randgold. However, on the view that a higher multiple is earned, rather than instantly achieved, await further progress before buying in suggests the Times.History has shown that when a British retailer takes its first steps into America, it is often a good time to sell but the planned expansion of mail order specialist N Brown across the Atlantic might cause less alarm. The group confirmed yesterday that it would launch a US pilot of Simply Be ? its brand for women in their thirties up to size 32 ? in the summer. For now, Brown is doing fine at home. Its shares gained 5% yesterday as adjusted pre-tax profits of £93m comfortably beat City forecasts. At 265p, up 12½p, or ten times current-year earnings, the shares still trade at an unwarranted 15 per cent discount to Brown's clothing peers. Buy says the Times.Faroe Petroleum is flush with cash ? but it wants some more. Faroe yesterday tapped shareholders through an unexpected two-for-three £65m rights issue at 100p ? its biggest fundraising since floating in 2003. Bolstered with the proceeds, the company is fully financed for the next three years. The shares have nearly doubled on the year, helped by two discoveries west of the Shetlands. Take up the rights says the Times.Veterinary market consolidator CVS continues to do deals and although the share price progression is likely to be slow and steady, the group is emerging as the UK's leading consolidator in a growing market. The shares remain a buy 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.