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Wednesday tips round-up: Britvic, Mothercare, BG

Wed, 15th Jul 2009 06:37

The sun shines, ergo, the drinks companies do rather nicely. When the group in question, Britvic, owns the Robinson squash brand and Wimbledon turns out to be more entertaining than usual, you would expect it to release good news to the market. Britvic is likely to have a good time of it over the next 12 months, and the Independent would take a punt on the market catching up at a later date. Buy.Britvic shares are now trading on a September 2009 earnings multiple of 11.5 times, falling to 10.4 times next year. With analysts expected to upgrade their forecasts, the current multiple will fall as consensus forecasts rise. The shares are also yielding 4.4%, which is well worth having. Shares in Britvic remain a buy says the Telegraph.Maternity and babywear group Mothercare is one of the exceptions to the gloom in the retail sector. The company's first-quarter trading update should be strong. In total, the company has seen 15 consecutive quarters of like-for-like growth, a remarkable performance in any business, especially given the current market conditions. A current year earnings multiple of 16 is deserved and falls to 14.7 in 2011 then 13.9 in 2012 on growth estimates. Buy says the Telegraph.If you look at a graph of oil explorer Melrose Resources' performance, it ebbs and flows pretty much in line with the price of the black stuff. An equity to raise £11.2m will speed up the drilling of its Kaliakra appraisal well in Bulgaria and its Egyptian field development. It is its Bulgarian gas projects, however, that are really exciting. The shares might do little beyond the oil price, but the yield is among the best in the sector. Buy says the Independent.Bookies are proving relatively resilient in the recession, which is good news for the betting industry technology company Alphameric. Joe Lewis, the super-rich investor who also has a stake in Ladbrokes, has been increasing his stake - a fact that is worth watching closely. The valuation, at 9.8 times this year's forecast earnings, is undemanding, and the yield, at 5.5%, is good. Buy says the Independent.Forget the nags. Shares in Alphameric, which beams live racing footage into bookies' shops, have proved the better bet this year ? more than doubling since January. The problem is that the next batch of UK media rights do not come up for grabs until late 2011, meaning that Alphameric has limited short-term scope to extend its reach to other racecourses. Meanwhile, bookies are deferring spending on new IT systems ? Alphameric's other business ? amid the consumer downturn. The shares have run far enough for now. Pass says the Times. Yesterday, BG took delivery of its first cargo of liquefied natural gas (LNG) to its newly commissioned Dragon terminal in Milford Haven. Meanwhile, BG last month secured a foothold in US shale gas through a $1.3bn joint venture. Further clarity on BG's progress, together with an update on its Tupi deepwater discovery in Brazil, should come with first-half results on July 29. At £10.03, or 15 times earnings, hold on says the Times.Marine services group James Fisher has not been immune from recession: its coastal tankers (which ship oil from refineries to local depots) have suffered from lower volumes. However, any weakness should be more than offset by growth elsewhere while, after an 18-month hiatus, Fisher is well placed to make bolt-on acquisitions. At 401p, or nine times earnings, buy on weakness 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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28 Aug 2009 09:45

Midcap round-up: JKX Oil, Melrose, SVG Capital, ...

Oil explorer JKX Oil saw the lower oil prices crimp profits for the half-year but said its second half performance is expected to be in line with expectations. Pre-tax profit slumped to £44.6m from £83.5m before revenues fell to $78.5m versus $116.8m in the same period last year. Revenues were wei

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26 Aug 2009 16:27

London close: Footsie runs out of steam

Wall Street's inability to hold onto new home sale-inspired gains was the final nail in the coffin for London, bringing to an end a six-day winning streak. Much of the blame lay with the UK-listed miners who hogged the list of largest losers on weaker metal prices. Antofagasta was among the worst

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26 Aug 2009 14:32

London afternoon: RBS buoyed by pension moves

Equity prices are mixed with a lower bias. The Footsie continues to drift lower, weighed down by underperforming resource stocks. Pre-tax profits plunged at Tullow in the first half of the year as the firm felt the pinch of the slide in oil prices. The oil company posted a pre-tax profit of £34.

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26 Aug 2009 12:09

London midday: Resource stocks a drag

Given that resource stocks are in the dog-house the Footsie is doing well to be only moderately in the red on a day of mixed results for blue chips. Pre-tax profits plunged at Tullow in the first half of the year as the firm felt the pinch of the slide in oil prices. The oil company posted a pre-t

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26 Aug 2009 08:12

Melrose ups production guidance

Oil and gas firm Melrose Resources saw first half revenue and profit tumble as a result of lower oil prices and the planned cessation of production from its Galata field. Revenue in the six months to 30 June 2009 fell to $97.6m from $234m the year before. The company achieved an average price per

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11 Aug 2009 07:35

London pre-open: Small gains ahead

London's top stocks look set to open marginally higher with traders expecting Footsie to add 5 points in early trading. Clive Cowdery's insurance investment vehicle Resolution will be catapulted into the FTSE 100 index after life insurer Friends Provident accepted a new £1.86bn bid on Tuesday. Fr

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11 Aug 2009 07:23

Melrose cheers successful Kaliakra well

Melrose Resources said gas samples obtained from its Kaliakra No.2 well in Bulgaria confirmed that the reservoir has very good properties, with an average porosity in excess of 30% high gas productivity. Given the quality of the reservoir, it was not necessary to run flow tests in the well and it h

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14 Jul 2009 12:59

Small caps round-up: NetDimensions, Ocean Power, Qonnectis...

Training software provider NetDimensions traded in lien with expectations in the first half of 2009. Cash balances at the end of June stood at $6.8m, up from $5.3m at the end of 2008. The company said its cash balance is equivalent to 16.5p in cash per share, a few pence above the current share pric

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8 Jul 2009 17:04

London close: Footsie dives as miners reverse course

The decline of the Footsie gathered pace in the final hour as miners, which had provided some measure of support for the blue-chip index for most of the day, turned lower. As global equity markets continue to retreat life assurance stocks were the main losers. Aviva, Legal & General and Prudential

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8 Jul 2009 15:36

London afternoon: Downward drift continues

The majority of blue-chip stocks remain lower on the day, though heavily weighted miners are limiting the extent of the fall on Footsie after positive broker comment this morning. Investec has upgraded Rio Tinto and BHP Billiton, advising its clients to take advantage of recent share price weakne

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8 Jul 2009 12:02

London midday: Footsie still flat

On another directionless day with little in the way of company news to guide sentiment, Footsie sits just in the blue. Heavily weighted miners are limiting the extent of the fall on Footsie after positive broker comment this morning. Investec has upgraded Rio Tinto and BHP Billiton, advising its c

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8 Jul 2009 09:00

London open: Down as banks await fate

Footsie has slipped in early dealings after a three-digit fall on Wall Street last night. Miners are going well despite the fall on Wall St overnight led by Rio Tinto, BHP Billiton and Antofagasta. Banks will be in focus later on when Chancellor Alistair Darling unveils the government's White Pape

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8 Jul 2009 07:19

Melrose on target at half-way point

Oil and gas firm Melrose Resources is proceeding as expected at its oil and gas fields in Egypt, although recent government elections have held things up in Bulgaria. Production averaged approximately 16,000 barrels of oil equivalent per day (boepd) on a net entitlement basis versus current full ye

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19 May 2009 08:15

Melrose Resources ramping up production

Oil and gas firm Melrose Resources has raised its production forecast for 2009 by around 5%, reflecting continued strong performance of its Egyptian assets and the earlier than expected start of production at its South Zarqa and North East Abu Zahra projects. The net entitlement production forecast

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