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Thursday tips round-up: ARM, Senior, 600

Thu, 28th Apr 2011 07:16

Arm Holdings super-smart chips drive almost every smartphone on the market and its reach is now expanding well beyond advanced mobile phones. The stock trades on a huge multiple, which KBC Peel Hunt estimates at 54 times its estimated earnings for 2011. The Independent has Arm as one of its stock picks for the year, and we continue to stand by it even though some analysts believe the growth of the smartphone and tablet industry is priced in. Buy, the paper recommends.With the stock having increased more than 260 per cent over 2009 and 2010, investors in Senior cannot be blamed for feeling a little disappointed that this year has seen the industrial manufacturer fail to push on. Yet if there are no nasty surprises then an upgrade in forecasts is possible, suggesting that its performance so far this year has been little more than a pause ahead of further gains in the long-term. Buy, says the Independent.Lasers and machine tools are among the engineering products made by 600 Group. The company has borne the brunt of the recession, incurring two years of losses before moving into the black for the first six months of the current trading period. Its core markets are beginning to recover, exemplified by its order book up by one third from the period last year. The shares appear worth investigating. Buy, says the Scotsman.Yesterday's first-quarter update from temporary power group Aggreko was solid. The company has a very impressive business model and solid prospects and the Telegraph keeps a buy recommendation, although new investors may wish to see if the shares retrench a little after such a strong run.One analyst called BP's political misread in Russia a "schoolboy error". This appears to be fair comment - Bob Dudley, chief executive, should have played the situation better. This situation has created a cloud of uncertainly over the shares - but if the deal eventually goes through, exploration in the Arctic will offer significant opportunities. The Telegraph still prefers Royal Dutch Shell, because of its clearer growth strategy and higher yield. The rating on BP shares is now hold until the Russian situation is clearer.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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