Wednesday tips round-up: Debenhams, Hargreaves Services, Ashmore

16th Sep 2009 06:43

Debenhams is in a far better position than it was at the start of the year. The demises of Woolworths and Adams have given the company the opportunity to build on its historically low market share in children's wear. It is also growing in sportswear, another target area. However after the strong first-quarter run by its shares, gains will be harder from here, especially given undiminished strains on consumers and January's planned rise in VAT. Even so, at 81¾p, or ten times earnings, hold on says the Times.Shares in quality breeding pigs and bull semen group Genus are trading on a June 2010 earnings multiple of 17.9 times, falling to 16 in 2010. The yield is 1.7%. They are a buy based on the recovery of the US dairy market, its expansion plans and the unstoppable trend of increasing demand for food says the Telegraph. UK coal miner Hargreaves posted its results for the year to May 31 yesterday and they were exceptional. Pre-tax profits rose 46.5% to £26.2m on revenues that were 24.3% ahead at £503.1m. The group's business model has been so successful that it has produced an annual compounded rate of earnings per share growth of 50% for the last four years. This is very impressive. Yielding 2%, they are a buy says the Telegraph.Rising imports of liquefied natural gas may put further pressure on coal but its place in maintaining diversity of energy supply means that it is unlikely to disappear in a hurry soon. At yesterday's 643p, or seven times earnings, and profits still forecast to grow in double digits, the Times is also a buyer of Hargreaves as is the Independent.Fund manager Brooks Macdonald has a growing branch network, an expanding stable of IFAs, which bring it business, and an appealingly transparent fee structure that should help it to maintain momentum. But at 386p, or 15 times earnings, the shares have rallied by nearly one third since July. Look to buy lower down suggests the Times.Fund manager Ashmore is bullish, but valued at 16.3 times it trades ahead of its peers, which are just under 15 times. Hold for now, but Ashmore certainly could prove fruitful in the future suggests 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.