Sunday share tips: Burberry, BP, Victrex

Investors in luxury goods group Burberry endured a case of the jitters last week after the company unveiled a series of boardroom tweaks. However, the group's strategy is unlikely to change. Investors were already concerned about a slowdown in growth for upmarket goods groups and after the recent market rally they were looking for an excuse to sell. As well, an improvement in the US and Chinese economy could mean that the slowdown is not as severe as feared. Asia and the US each account for about 25 per cent of the 280bn dollars (177bn pounds) global luxury goods markets and economic data from both regions have been good. After the recent market rally, cautious investors have been looking for a reason to sell. The board changes provided this and that's why they sparked a fall of more than 6 per cent. This slide looked overdone, the Sunday Telegraph´s Questor team says. With the shares trading on a current year earnings multiple of 20, it is in-line with its peers, so Questor says it keeps a hold.The clock is ticking ahead of BP's civil trial in the US, which is due to start on February 25th. The oil group had hoped to settle lawsuits over the 2010 Gulf of Mexico spill ahead of that date, but it looks less likely now after the states of Louisiana, Alabama, Mississippi and Florida demanded $34bn (£21.5bn) for economic and property damage under the Oil Pollution Act. All in all, the total bill could now come to $90bn, BP revealed at its full-year results presentation. The numbers were ahead of expectations, with underlying profit falling by a fifth to just under $4bn. However, BP plans to increase cash flow by 50% by 2014, based on a $100 oil price. Management also plans to increase the dividend 'in-line' with "underlying earnings and the improving circumstance" of the company. The fourth quarter dividend was flat quarter on quarter, but there is likely to be plenty of scope to increase the pay-out. The shares are cheap, trading on a 2013 multiple of 8.3, falling to just 7.3 next year, but this reflects the US uncertainty. With a prospective yield of 5% rising to 5.3%, Questor keeps a hold.Victrex is a great British company. It makes an extraordinary type of plastic that is sold globally and used in products as wide-ranging as dentures, aircraft, mobile phones and oil rigs. The shares are 1549p and should increase steadily over the next five years, a rewarding stock for the patient investor. Although the company may be based in Lancashire 98% of its products are exported to the Continent, America and Asia. Furthermore, it expects to increase sales substantially to Asia and Latin America, as economic growth is stronger and the pace of innovation is faster. Victrex is not immune to the economic environment so its profits plunged in 2009, recovered sharply the following year and held steady at just over £94m in 2011 and 2012. Brokers expect a similar figure for the year to this September, with steady gains in 2014 and beyond. As for the dividend, it is forecast at 39p for 2013, rising to 42p next year. For the Financial Mail on Sunday´s Midas column: "At 1549p, Victrex shares are not cheap but they offer real long-term value. The company is innovative, focused on growth and constantly finding new applications for its wonder plastic. Buy and hold."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.