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Friday tips round-up: BT, Forth Ports, Wellstream

Fri, 02nd Jul 2010 06:50

BT, the former state-owned telecoms monopoly, which has previously shown little aggression, attempted to nutmeg BSkyB by dramatically undercutting the price its rival charges consumers to watch Sky Sports.BT, which is trading on a price to earnings ratio of 7.6 and has a dividend yield of 5.7%, is demonstrating the aggression it needs to return to near the top of the league. Buy says the Telegraph.Forth Ports looks well-placed with good earnings certainty, increased new business, a big surplus land bank and a fledgling but exciting renewables business. Acquisition or not, Forth Ports looks strong and notwithstanding a forecast multiple of 21.1 times 2010 earnings, buy says the Independent.Wellstream issued its trading update yesterday and the oil services group, which specialises in flexible pipes, was not involved in the Gulf of Mexico spill. But while there's no question of a direct hit, the Deepwater Horizon explosion has triggered uncertainty throughout the industry, not just in the Gulf - something which was plainly acknowledged by the company.With the shares trading on 12 times forecast earnings for 2011, this is not a sell. But, given the issues, it isn't a buy either. Hold says the Independent.Greene King trades on about nine times 2011 earnings - about the same as its rival Marstons - but below Fuller Smith & Turner, on 14 times forward earnings. Greene King shares are down less than 3 per cent this year and could prove attractive to investors looking for a home-grown bet on growth in the casual dining sector, writes the FT.There's a high degree of uncertainty about Lloyds insurer Brit, which firmly rebuffed a takeover from Apollo Management. The fact that its shares now sit at just above 900p suggests that there is little expectation of a white knight, and scant hope of more money from Apollo.Shareholders should push for an acceptance of any bid of £10.50 or so. But in the absence of any move towards talks, sell the shares suggests the Independent.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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