FKL.L Share News (FKL)

The fundamentals for both BHP Billiton and Rio Tinto look good now their iron ore tie-up in Australia has finally happened. Spot iron ore prices are currently around one-third higher than contract prices, indicating the latter will move in line, and Chinese steel production continues at high levels. Rio's aluminium operations should also benefit from rising production costs in China. At £19.10 for BHP, and £31.69 for Rio ? about 20 times next year's earnings apiece ? hold on says the Times.At eight times 2010 earnings, contractor Carillion looks inexpensive and there is a prospective yield of about 5% to go with it, which makes the stock doubly interesting. While not an enthusiastic supporter of this business, on valuation grounds, it looks to be worth a flutter, so the Independent says buy but be prepared to cut and run and take profits if the shares show significant gains in the coming months. Shares in the Lloyd's of London insurer Novae have fallen by nearly one third since May, hurt by disappointment that premium rate rises have been subdued and by a continuation of the company's historic returns, which lag those of its peers. Novae, which reported trade credit losses this year, remains vulnerable to recession, especially to worsening claims in lines such as professional indemnity. At 296p, up 19p, or less than nine times 2010 earnings, pass says the Times.At 392½p, or 22 times earnings, Falkland Islands Holdings provides an each-way bet on Falklands oil among those for whom the all-or-nothing play of pure exploration is too extreme. With FIH's UK businesses, such as the Gosport ferry, generating annuity-like income, there are dividends, too. Buy says the Times.Things are looking up at Renishaw. The engineering company has reversed the voluntary pay cuts it introduced at the start of this year, with employees set to receive their full salaries from the beginning of 2010. If the recovery falters even temporarily, Renishaw may be knocked off course. There is much to recommend this company, but the shares are high enough for now. Hold says the Independent. As part of yesterday's preliminary results, Wichford raised its dividend, giving investors a yield of more than 6%. However, unlike other property companies, Wichford's shares have lagged in the last quarter, largely amid concerns about its burgeoning debt pile of £517m, against net assets of just £47.7m. Investors may be cautious anout any company that is leveraged so highly. Hold for now says the Independent.The expected uptick in Arica-focused oil group Afren's production can be seen in the company's earnings multiples. The shares are trading on a heady December 2009 multiple of 86.6 times - but this falls to just six next year and five in 2011. Buy says the Telegraph.The thing to remember about bid target Shanks is that the company is not distressed. It recapitalised its balance sheet in May and is well placed for an economic recovery. The company is not under financial stress of any sort. Once industrial activity improves, the company should start to throw off cash. The private equity house interested in the company will understand this very well - and that's why it has pounced now. Hold until the bid situation is resolved 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.