Sunday tips round-up: BG, IMI, Smith & Nephew...

Shares in energy giant BG Group hit a two-and-a-half year high at the end of last week after it gave an update on operations at its Tupi and Guara fields in Brazil. Based on the new resources estimates for these fields, the three floating, production, storage and offloading (FPSO) vessels that are at the two sites are expected to recover total gross reserves of about 2.2bn barrels of oil equivalent (boe). BG Group's share of this will be about 600m boe net. The shares are trading on a December 2010 earnings multiple of 17.4 times, with a dividend yield of just 0.9%. Hold says the Sunday Telegraph.Fortune Oil's oil and fuel businesses provide the company with steady cash flow but in the past five years the company has become increasingly interested in supplying natural gas to China. Fortune's profits increased 15% to £18m last year and they are expected to rise steadily over the next three years. The shares are 7.31p and have been stubbornly at or around that level for more than a year. Currently valued at £135m, management would like to build Fortune into a £1bn business. If they achieve only a quarter of that ambition, the shares should do well. Buy says the Mail on Sunday.Engineer IMI shares are trading on a December 2010 earnings multiple of 14.2, falling to 12.5 next year. For such a quality company, this does not seem overstretched, but the shares have had a good run ahead of the announcement of its promotion into the FTSE 100, so the rating at this level must be hold for now says the Sunday Telegraph.Smith & Nephew is best known for making hip and knee replacement products. Takeover rumours swirled around the firm last week, sending the shares to 650.5p. Are the rumours true? At this stage, it is impossible to tell, though if a bid did emerge, it would probably come from a private equity suitor. S&N is a robust firm on a standalone basis and if a bid emerges the shares could hit 800p. Hold says the Mail on Sunday.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.