Weekend tips round-up: Petra Diamonds, Wasabi, Hilton Food...

16th Jan 2011 11:56

Petra Diamonds has benefited from a recovery in diamond prices - and it has put in a very strong share price performance over the past few months.The price of rough diamonds is now above the peak seen in 2008, before the credit crisis really hit home. Petra said last week that, in the six months to December, it produced 582,102 carats, which was below expectations. However, the company confirmed that it was on track to met its full-year production target of 1.3m carats.The miner remains the Telegraph's preferred way to play rising diamond prices. The sector has attractive fundamentals, with new supply being limited, and rising demand. When the US economy picks up, demand will increase further. Petra shares remain a buy.Wasabi Energy invests in environmentally friendly projects and companies. It has made three investments - it owns 23% of a company that turns waste matter into electricity, 50% of a company that helps prevent water from evaporating in dams and reservoirs and almost all of a firm that produces electricity at low temperatures. Wasabi is a small firm that began trading on Aim in December. Since then the shares have risen from 2.1p to 2.4p. At this price there is significant potential. Cautious investors should steer clear, but those with an appetite for risk should buy says the Mail on Sunday.On Friday, state-of-the-art meat-packing company Hilton Food posted yet another "steady as she goes" update. Current consensus forecasts for the year see earnings per share rising 8% in 2010, with growth accelerating this year to 10% and 14% in 2012. The company has a strong balance sheet, with little debt and it is very cash generative so it should be able to fund any opportunities for expansion that arise. The rating is hold, as the valuation looks full for now, given the weak consumer backdrop, the Telegraph writes.Worries over government spending on new infrastructure projects have weighed heavily on the shares but Balfour Beatty's long-term prospects look good - and last week's trading update confirmed that everything was on track in the current year. The company currently has an order book of £15bn, which should underpin forecasts this year and next. The shares are yielding 3.8%, which is likely to increase, and are trading on an earnings multiple of just 8.9 times in the current year. Buy says the Telegraph.Animal pharmaceuticals group Dechra's half-year update earlier this week showed that the strategy of moving into the US market is paying off. Sales in the region rose 18.7% compared with last year, underscoring the growth case for the company. In the US there are more than nine times as many dogs as there are in the UK and 10 times as many cats and horses than in the UK. The shares are trading on a June 2011 earnings multiple of 15.4 times, falling to 13.2 in 2012. The shares are yielding 2.12%. 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.