Wednesday tips round-up: Imperial Tobacco, JD Sports, Synchronica

23rd Sep 2009 06:46

Imperial Tobacco yesterday issued a full-year update that reassured the market on various points. In particular, there was some concern at the half-year results that the company would not raise the full-year dividend by as much as everyone had expected.The shares stands at just over 11 times forecast earnings for 2009, compared with British American Tobacco on 13 times. On an enterprise value measure - which includes the company's debt - to EBITDA Imperial is also at a discount to BAT. The stock yields a healthy 4.2%. Hold on for further gains says the Telegraph.JD Sports Fashion is moving away from the sports retail pack. The chain, which sells sporty casual wear, yesterday said that first-half profit was up by 14pc, ahead of even the most optimistic forecasts. At a time when rivals like JJB Sports and Sports Direct are flagging, JD is leagues ahead. Trading on 7.6 times next year's earnings, the stock yields 2.17pc. A strong buy says the Telegraph.At 594p, up by one quarter since July, JD shares have little to drive them higher for now. However, at seven times earnings, neither can they be deemed too steep. Hold on says the Times.JD has shrugged off the recession and will get a boost from sales of England football shirts during next year's World Cup. And given its good behaviour over recent years, its shares look a safer option for investors than betting on glory for the national squad. Buy adds the Independent.For London property developer Minerva, yesterday was, in part, payback time. The group's shares shot up by 25.4% after the company, which is responsible for the redevelopment of the Walbrook and St Botolphs, announced that it had refinanced a debt pile of more than £750m. Hold on to Minerva shares if you own them. Don't rush to buy otherwise says the Independent. Synchronica makes software to sell to mobile networks so that people with normal, non-"smart" phones can have always-on email on their handsets. Synchronica stock looks undervalued - with a PE ratio of less than 10 times against a sectoral average of 16 - and the prospects are good. Buy says the Independent.You might not guess from yesterday's numbers that Ricardo is an engineering consultant to the motor industry. Full-year revenues were down 2%, pre-tax profits up 1%and earnings per share ahead 13%. Equally, Ricardo's order book is no lower than it was a year ago. It added trading in the first six months of its new financial year will be "substantially lower" than the last, but on a longer term view the Times says buy on 14 times current year forecasts and yielding nearly 4%.The scope for CVS Group, Britain's biggest owner of veterinary practices, to acquire practices, which can be funded from cashflow, is undiminished. At 167p, or 11 times earnings, hold on says 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.