Friday tips round-up: Playtech, Unite Group

Betting and gaming software provider Playtech's first half results showed the company is firing on almost all cylinders, but much is already baked into the share price, writes The Times's Tempus. Sales at its casino division rose by 29%, driven by multiple customer wins in various territories, accompanied by a 35% increase at its sports business. However, the expansion in the latter was flattered by the World Cup and is not a sustainable rate of growth. Bingo and poker on the other hand are facing stiff competition. The company nevertheless is left in the enviable position of having to decide how best to deploy its €366m cash pile. The board is hoping that the spread of regulation later in the year might present it with opportunities for investment. Even so, while the technology outfit is growing fast and regulatory changes offer enormous potential for gaming markets, on 19 times' earnings the stock is "not cheap, and probably only a hold," says Tempus.Property investing is about yield, borrowing cheaply and obtaining a stable stream of income with those funds, and Unite Group is excelling at it. Over the first six months of the year the provider of student accommodation has managed to cut the average cost of its debt by 60 basis points to 4.7%. In parallel, the average maturity of that debt has been extended to over seven years and is almost all on fixed terms. Meanwhile, its portfolio of assets yields a steady 9% to 10%. Furthermore, the company is benefiting from the increased rates of growth in university attendance. Unite expects to add another 1,600 beds, mainly in London, to its portfolio over the coming two years. It should come as little surprise therefore that the company is set to hit its earnings target of 18p per share a year early. The shares only offer a 1.3% dividend yield but what you are paying for in this case is the expansion in the net asset value of the portfolio - which is reasonable. The stock still looks attractive, so 'buy' says The Daily Telegraph's Questor column. 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 Unite Playtech