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Friday tips round-up: Royal Bank of Scotland, BG, Galliford Try

Fri, 11th Sep 2009 06:48

Royal Bank of Scotland is in a mess and its chief executive, Stephen Hester, has made no bones about that fact. The shares have recovered strongly recently. Although the economic outlook appears better than it was and RBS should benefit, be wary of backing the lender at these levels until there is a bit more certainty to go alongside Mr Hester's clarity. So sell and consider again if the shares show weakness says the Independent.Galliford Try, which issued its preliminary results and announced plans to raise £126m in a cash call for a land grab yesterday, it has seen its stock up nearly 100% in the past six months. The group is one of the stronger names in a recovering sector. Stick with it and hold says the Independent.Galliford has timed its cash call well. Take up the rights adds the Times.The interesting bit about Falkland Island Holdings is its 15% shareholding in Falklands Oil and Gas (FOGL). Investors may look at the conglomerate instead of a direct investment in FOGL because it has a diversified income stream, an 8p dividend and doesn't rely on a big find. If there is one, however, shares will soar. Although yesterday's gain might have taken out much of the near-term upside, its prospects look good, so buy says the Independent.Bovine genetics specialist Genus reported a 15% rise in adjusted pre-tax profits to £32 million on revenues up 14% to £280m. The longer-term attraction ? its ability to help farmers to boost output amid rising demand for food from population growth and urbanisation ? remains undimmed. At 631p, or 17 times earnings, hold on says the Times.It was almost inevitable that there would be takeover speculation surrounding Gulfsands after its 50-50 partner in Khurbet East in Syria was snapped up by the Chinese. Sinochem is still in the process of finalising the Emerald Energy purchase and there has been talk that Gulfsands would be the next target, although it denied the rumours. Gulfsand shares are trading on a December 2009 earnings multiple of 15.9 times. Buy says the Telegraph.Eventually, the market is going to wake up to the quality of BG Group's assets. After this week's news from Brazil, that moment is drawing closer. The Guara field in the Santos Basin could really be a "megafield". It has recoverable reserves of 1.1bn - 2bn barrels of oil, compared with 500m recoverable from BP's find in the Gulf of Mexico, unveiled last week. The shares are trading on a December 2009 earnings multiple of 15.8 falling to 14 in 2010. The yield, at 1.1pc, has scope for future improvement. A core holding. Buy says the Telegraph.The extension of meat processor Hilton Food's product range and ever wider geographic reach provide scope for further growth. But at 180p, or ten times earnings, the shares are up with events. Hold says 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.
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