Wednesday tips round-up: Unilever, Centrica, Thomas Cook...

29th Sep 2010 06:45

Unilever shares have underperformed of late, although they have started to bounce from recent lows. However, they are still more than £2 below their recent high of £20.15 seen in December. They hit a low of £16.88 at the end of August.The long-term growth will come from emerging markets, where more than 50pc of profits are now generated. They are trading on a December 2010 earnings multiple of 14.5m falling to 13.1 next year. The yield is 4% and the shares are still a buy for their emerging market growth says the Telegraph.Close Brothers' attempt to build a tripartite financial services business has been hampered by the continuing underperformance of its asset management division. Across the group, operating profits from continuing operations rose by £11m to £99.3m, despite a £15m writedown from a couple of unfortunate investments from before the financial crisis ? one the decision to invest in the floundering Plus Markets. The shares are on about 11 times' earnings and yield an attractive 5.6%, but for now rate little more than a hold says the Times.Centrica stepped in swiftly to pick up parts of Connaught's compliance business for the knock-down price of £11.2m yesterday. Centrica's share price did not react much to the deal. But every little helps and at 13 times this year's forecast earnings with a tasty 4.2% yield, they are by no means pricey. Buy says the Independent.Thomas Cook's full-year update on Tuesday had positives and negatives - but the market focused on the negatives. The Telegraph believes this has created another buying opportunity and maintains a positive stance on the shares. The shares are trading at a discount to sector peer TUI Travel and offer a higher yield. Thomas Cook shares are trading on a September 2011 earnings multiple of 6.5 times, compared with Tui on 8.9. Thomas Cook has a prospective 2011 dividend yield of 6.6%, compared with Tui on 5.4%. Buy says the Telegraph.At 14.5 times this year's forecast earnings, falling to 9 times next year's, hedge fund giant Man shares are not cheap. Income seekers will be attracted by the yield, but pull out until there are more concrete signs of revival. Sell says the Independent.Qinetiq, the military gadget maker, confirmed yesterday, defence spending uncertainty has led to delayed orders and limited visibility for the future. It is not for the faint hearted, as sentiment in the wider sector is likely to remain depressed for some time. But for those willing to take a punt, there is scope for revival at Qinetiq. Buy says the Independent.Ricardo advises vehicle makers and sees huge opportunities from the forthcoming legislation tightening CO2 emissions, which kicks in for the UK in 2012 and four years later in the US. Stripped of the German operation, operating profits fell from £15.1m to £12.6m for the full year, although the dividend is held at 10.7p. High enough for now says the Times.Pawnbroker Albemarle & Bond argues that it is not only a recession story and that last year's 37% rise in profits before tax to £20m is actually the nineteenth consecutive year of profits growth. Further growth will be slower, and the house broker Collins Stewart has the shares on about ten times' earnings. An off-beat punt on further economic hard times suggests 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.