Friday tips round-up: Savills, Soco, Sage...

The last time we looked at the Savills, we opted to buy, reasoning that its international reach, coupled with exposure to the resilient upper end of the UK market, gave it an edge. Yesterday's half-yearly results confirmed our confidence. The group said revenues in the six months to the end of June had climbed by 10 per cent, with pre-tax profits surging by nearly 40 per cent, as it drew strength from activity in the prime central London property segment and from the Asia-Pacific region, which remains buoyant. Also reassuring is the fact that, despite showing resilience, Savills trades on multiples of around 11.6 times forward earnings for this year, and on under 10 times on the estimates of next year, according to UBS. At the same time, it boasts dividend yields of more than 4 per cent. Buy, suggests the Independent.Soco's business is set to be transformed early next month by the development of its TGT oilfield, offshore Vietnam; yet the stock continues to trade at a substantial discount to our estimated 597p-a-share net asset value. We think this FTSE 250 constituent is one of the least expensive stocks in our international universe. TGT phase one is scheduled to come onstream at the start of September and production should hit 55,000 barrels-per-day (b/d) by year-end; a second phase of development activity could increase output to an estimated 90,000b/d in late 2012. We think the stock looks undervalued on a cash flow metric, too. Buy, recommends the Scotsman.Sage Group hit the headlines this week when it was reported to have outbid private equity for the Australian software company MYOB, a specialist in accounting and bookkeeping software. If the deal completes, Sage would be catapulted instantly into a market-leading position in Australia. However, there are market whispers that Sage may be wavering and the A$1.4 billion (£880 million) takeover may not take place. Sage refused to comment on whether the purchase was in the bag or if it might walk away. Sage, which is valued at less than 12 times projected profit this year, may decide to mind its own business in Australia but it looks set for a new era of takeovers, which could trigger uncharacteristic interest in the stock. With organic growth restored and debt well under control, any lull in the shares could provide a good entry point, says the Times.PV Crystalox Solar hasn't been shining since its profit warning in June. Trouble is while sales volumes have been increasing, prices have been falling. An excess of inventory combined with an unexpected slowdown in the key markets of Italy and Germany will result in a second-half loss. Evidence of the problem could be seen in yesterday's first-half results: shipments of its wafers increased by 23 per cent but their price fell 6 per cent. But whether to buy now depends on your view of how quickly the solar market will recover. The company trades on 4.2 times 2011 forecast earnings, but it may lose money for some time unless the market picks up very quickly. Long term there's good potential and there is increasing interest from the East, places such as China and Taiwan. But the short term outlook is bleak and a buy now would be highly speculative. We would keep away, says the Independent.BCPlease 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.