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Friday tips round-up: Xstrata, Savills, Enterprise Inns

Fri, 10th Aug 2012 07:02

In the Telegraph, Questor takes on the Xstrata / Glencore takeover saga. The basic facts are that Xstrata's shareholders want more shares in exchange for their holdings and have been bolstered by impressive half year numbers which show Xstrata weathering a drop in commodity prices well. The firm also has a strong pipeline of growth mining projects on the go. Questor has been burned recommending Xstrata in the past, but believes the deal will go through at a higher rate than currently proposed. Hold. In the Times, Tempus takes a look at property consultant and high-end estate agent Savills. It's certainly had a come down, in line with the rest of the property market. Profits in 2007 were £85.7m, compared to the half year number for 2012, which was £18.2m. The group has managed to gain ground by offering consultancy services like simply collecting rent, while also raking in advice fees. That non-cyclical business is keeping Savills afloat and Tempus is impressed with its "nimbleness", although the stock only merits a hold.Tempus is keener on Enterprise Inns, the pub company that has been struggling under a debt mountain. Some sensible disposals of non-performing pubs (as well as some very good ones) is beginning to get the financial house in order, while the Euro 2012 football and Diamond Jubilee both lifted the third quarter numbers. Tempus thinks Enterprise Inns has some way to go, 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.BS

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