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Tuesday tips round-up: e2v, Workspace, DS Smith...

Tue, 07th Jun 2011 06:43

e2v technologies is a maker of specialist technology for high-performance systems that was spun out of the old Marconi business by its management when Marconi collapsed in 2002. It is one of the Tempus tips for 2011, and one of the best-performing. The shares were tipped at 91p on January 1; they closed last night off 6½p at 127p, a gain of almost 40% since the start of the year. Adjusted operating profits were up from £15m to £38.2m last year. Progress will be slower, though analysts' forecasts look unambitious. The shares sell on 11 times this year's earnings. I suspect that by the end of the year, that investment gain will be rather wider. Buy, says the Times.Workspace, the provider of office space for small and medium-sized businesses, toasted a more than doubling in annual pre-tax profits yesterday and unveiled a major change its top management team. Largely for valuation reasons, we think that caution may be justified on Workspace, despite its buoyant performance and a 10% rise in its final dividend to 0.825p. The Independent gives Workspace a hold rating.There was always an assumption that DS Smith would sell Spicers, its office products wholesaling side, even before the auction got under way at the weekend in the traditional way ? a leak to the Sunday papers. Don't expect much guidance when the company releases results on June 23. The eventual proceeds will be useful for in-fill acquisitions. For now, the shares sell on less than 11 times the current year's earnings. Hold for developments, recommends the Times.SocialGO provides its customers with tools to build their own social network and it updated the market about its progress ahead of its annual general meeting. This year could be crucial for SocialGo, as it is preparing to launch its second version this summer, designed to make its core product appeal to a wider audience and make it easier to use. However, the company is currently still suffering an annual loss of over £1m. We are still holding off before suggesting investors pile in, as much depends on the new software, but we will watch with interest. Hold, says the Independent.It was another bad day for shares in SuperGroup, which fell 7% to close at 969p. They had already plunged 7% on Friday as the City got wind of a "20% off everything" promotion at the weekend. The one-off promotion was available only to customers who registered online and was designed to boost the as yet undeveloped internet business. But it is a measure of the nerves over SuperGroup's share price that the initiative should have aroused such concern. A couple of brokers put out reassuring notes yesterday. Numis Securities thinks that fears of overstocking because of the tough climate on the high street are overdone. But the shares still trade on 23 times' this year's trading, which suggests little reason to buy, the Times says.---BCPlease 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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