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Pin to quick picksTaylor Wimpey Share News (TW.)

Share Price Information for Taylor Wimpey (TW.)

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Share Price: 149.80
Bid: 149.80
Ask: 149.95
Change: 1.05 (0.71%)
Spread: 0.15 (0.10%)
Open: 148.45
High: 150.50
Low: 147.55
Prev. Close: 148.75
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Thursday tips round-up: Rightmove, Legal &General, Taylor Wimpey

Thu, 04th Aug 2011 06:49

The phenomenon that is Rightmove chalked up another rock-solid performance in the six months to June. The online property advertising platform seems unstoppable. The shares are a strong hold, even on a gloomy view of the economy and the housing market. Investors of a more sunny disposition should buy, says the Times. Legal & General's strategy of focusing on cash generation seems to be paying off nicely. The life insurer beat City expectations by generating £427m of net cash in the six months to June, up from £337 million and £302m in the previous two halves. The full-year dividend seems likely to be close to 6p, putting the shares at 104.5p on a prospective yield of 5.7 per cent, with more hikes in prospect next year. Trading at a 25 per cent discount to embedded value, they look cheap, even in these jittery times. Buy, says the Times.The Independent's take is that, trading at a 21% discount to L&G's embedded value (the value of all in force businesses) with a prospective yield of nearly 5 per cent, which will rise, the shares offer huge value. L&G also has none of the European exposure of Aviva, or Prudential's governance issues. In fact, we can hardly think of a good reason not to add to our holdings. Buy, the newspaper says.The many investors who bought into Taylor Wimpey in the rescue capital-raising of May 2009 have done OK thus far. The shares have gone up by a third from the 25p placing price after the debt-burdened housebuilder was stabilised successfully. Chief executive Pete Redfern is making progress in the core British business, lifting the operating margin from 6.1% to 9.3% and confident of hitting double figures next year. He has also achieved build cost savings of 10 per cent and reports improved customer satisfaction. With mortgage availability so constrained, progress may be slow, but shareholders should hold on, says the Times.Ukrainian iron ore producer Ferrexpo said earnings before interest, tax depreciation and amortisation had soared by a stellar 86% to $401m, as revenues rose by more than 60% to $855m. The stock market, it seems, was not anticipating the strong results, leading to a fall of more than 10 per cent over the 10 preceding days, a movement which presents a buying opportunity, in the Independent's view. Location, location, location has always been the cliché when it comes to property, and for Capital & Counties it has turned out to be true. Looking ahead, it seems likely that the group's re-development plans for Earls Court will be the focus for the stock in the near-future, after the planning application was submitted in June. This would definitely provide some upside. That said, the stock is up more than 20 per cent since the start of this year, meaning that a negative result on the application could trigger profit taking. We would therefore wait before buying. Hold, says the Independent.Compass, the world's largest food service company, has proved very resilient through the downturn. However, there has been weakness in the share price recently because of the gloomy market backdrop and as the group faces strong comparisons in the future. The shares currently trade on 14.4 times 2011 forecast falling to 13 next year. The yield is 3.5%. As a defensive play in turbulent times, The Telegraph says buy.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.---RG
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Year-to-date sales rate till Feb. 26 at 0.62/outlet

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