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Friday tips round-up: Standard Life, Cineworld, Clarkson...

Fri, 11th Mar 2011 06:56
Standard Life suffered a rough session as its shares fell more than 7% after it issued full-year results.Stripping out various one-offs, yesterday's figures came in roughly in line with expectations, with operating profit rising to £425m from £399m a year earlier. Sales of long-term savings were healthy in 2010. Combined with a solid forecast dividend yield of about 5.5%, Standard Life's plan is worth backing says the Independent. Buy.Standard Life has its sights set primarily on the UK market and hopes to exploit the £1.4trn in pensionable assets it believes are up for grabs in Britain. Standard Life believes more UK businesses will need its services as more employees pay into pension schemes. The group is currently a market leader in this sector. In addition to this, the implementation of the retail distribution review will ban commission payments to intermediaries. The company's shares have risen by just under 10% over the past year making the investment one to hold on to says the Telegraph.Cinema operator Cineworld's box office is already a tenth higher than a year ago, with The King's Speech effect and the prospect of even more 3D movies still to come through. The stock is on an undemanding multiple of 10.2 times forward earnings, with a healthy yield of 4.8%. Buy says the Independent.Shares in Clarkson firmed up after the shipping broker posted better-than-expected full-year figures yesterday. The uptick came against the backdrop of a recovery in dry bulk volumes, with Clarkson reporting growth in market share across all its broking divisions. Pre-tax profits rose by 44% to £32.4m, while earnings per share were up nearly 40% at 125.4p. One point of caution is the uncertainty regarding the global economic picture. Any major wobbles on the macro front could hit shipping. But Clarkson stands out, boasting a strong balance sheet, which should help to see it through any surprises in the months ahead. Buy says the Independent.Computacenter has £100m in the bank, allowing for cash it cannot spend, and borrowing facilities of about the same that are easily accessible. The company is always cautious about looking forward, and first-quarter results this year will have to compete with strong trading a year previously, which included a large one-off contract. The shares, at 436p, are on less than 12 times this year's earnings and remain a firm hold says the Times. Funeral group Dignity shares, up 20½ p at 738½p yesterday, now sell on less than 15 times earnings. Future growth looks limited, but worth tucking away as a defensive stock says the Times.Reed Elsevier, the magazine and education group, was upbeat about 2011 when it announced full-year results. The publisher expected a "gradual recovery" in sales after flat revenues in 2010. Hold 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.

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