Sunday tips round-up: RM, Hill & Smith, Modern Water

RM has diversified into educational software, electronic whiteboards and other educational devices. It has also moved into US markets, where penetration of items such as fully electronic whiteboards is much lower than in the UK.The company has net cash of around £4m, with about £12 in the bank. The yield is respectable 4.8%. The shares are trading on a September 2009 earnings multiple of 11.6, falling to 10 in 2010. The shares are a buy says the Sunday Telegraph. Shares in last Sunday's new buy recommendation Hill & Smith have outperformed and are up 12pc over the course of the week following a positive trading update. The shares are trading on a December 2009 earnings multiple of just 6.7 times, falling to 6.1 next year. This is far too low considering its peer group trade on a prospective earnings multiple of nine times. The yield on the shares is also attractive, at 4.8%. The shares remain a buy says the Sunday Telegraph.Modern Water joined the Alternative Investment Market in 2007 and is at an early stage of its development, so much so that it has not yet made any money. But this should change dramatically as the company's technology is more widely adopted and it builds more plants. Modern Water is not a stock for the cautious, but for those willing to take a bit of a punt, the shares could prove richly rewarding. There is a growing need for fresh water, supplies are shrinking and this company seems to have found a way to help. The shares are trading at 44p, which reflects simply the cash on the balance sheet, so there is no value attributed to the desalination technology. That seems unjust. Buy and hold says the Mail on Sunday.Emerging markets now have a record equity share as developed countries are still engulfed in recession and as money flows back into the growth areas of the world. According to Bloomberg data, emerging markets now comprise 24pc of the globe's market capitalisation, compared with 18% at the start of 2009. Shares in Templeton Emerging Markets Investment Trust, which are up 31% since they were recommended on January 5, remain a buy says the Sunday Telegraph.Africa-focused oil and gas exploration Afren is on the verge of a massive massive turnaround in its fortunes, says brokers, with profits before tax of $108m forecast in 2009, rising to $457m next year. Brokers also believe that the stock should rise to at least 80p. Investors who bought in 2007 should sit tight. New investors should consider buying at current levels 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.