White goods online retailer AO.com makes a lot of staff being 'positive', which is all well and good. Unfortunately, investors in the company also seem to be taking the company's advice, which may end in tears. On the day of its flotation, markets duly pushed the outfit's market capitalisation up to 1.7bn pounds from the 1.2bn pounds at which it started trading. Just last September the company's own bankers valued it at £300m, but now it is trading at an aggressive multiple of over four times forward sales. Does the company have huge margins? Well, it reported £7m in net income for the year to the end of March 31st on £275m in revenues. Furthermore, the sector in which it operates faces deflationary headwinds. "The shares trade at over 100 times 2015 earnings before interest, taxation, depreciation and amortisation. Talk about a positivity test," says The Financial Times. Companies such as Travis Perkins remain a good way off investing in any continuing boom in housing. Nevertheless, they do not benefit from greater house building per se. Rather, it is the increase in housing transactions which tends to go hand in hand with the above where it makes its money, as new homeowners splash out on new kitchens and bathrooms or repair and maintenance. Indeed, 80% of its revenues originate in repairs and maintenance, plumbing included. Housing approvals currently stand at two-thirds of their peak levels so there is still plenty of room for further growth, but the question of how much is already baked into the share price remains. "Further growth may not be so stellar, but at 16 times' earnings they remain a good way of investing in any continuing housing boom," writes The Times' Tempus. 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.AB