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Sunday tips round -up: Electrocomponents, TT Electronics, Kewill

Sun, 15th Nov 2009 10:32
There are two main reasons to hold shares in distributor Electrocomponents. The first is the chunky yield and the second is the group's strong operating leverage to an upturn.In the six-month period to September 30, pre-tax profits slipped 58.1% to £24.8m on revenues that were 15.3% lower at £447.2m. The company confirmed it was on track to meet its full-year cost reduction target. The shares have risen 19% since July and are still a buy.TT Electronics shares were more than 240p in January 2007. Today they are 81p. At this level they offer a real opportunity. The company will benefit, like many others, as economic conditions recover, but its own internal improvement programme should deliver additional gains. Profits of £6.9m are forecast for 2010 and further growth is anticipated in 2011. Supporters believe this stock should double by the end of next year. Buy says the Mail on Sunday. Logistics software group Kewill shares have risen by an impressive 25% since January and the outlook is promising. Along with last week's interims, Kewill announced it was raising £7.5m to fund acquisitions. The company does not plan any large-scale bids, but it is keen to expand the reverse logistics arm. Many brokers reckon Kewill is a classic bid target itself. Hold on to the shares and find out if they are right, the Mail on Sunday suggests.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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