Thursday tips round-up: ACS, BP, Standard Life

Advanced Computer Software's Chief Executive Officer, VinMurria, is on the war path. After a big investor forced her into a sale of Computer Software Holding (CSH), her previous company at which she managed to engineer a growth spurt, she vowed never to make the same mistake. Now, as Chief of Advanced Computer Software, she has managed to purchase CSH, and ACS has been going from strength to strength. First half revenue growth was up 74 per cent to 99m pounds and pre-tax profits higher by seven per cent, and it wasn't all down to non-organic growth. Cash generation remains significant - at £18.7m at the interim stage - and the company now has a war chest of £40m. The shares are trading at a modest 14 times projected earnings and could be due a re-rating. Take a punt, says The Times' Tempus. It is too soon for BP to be able to say that it can put the Gulf of Mexico disaster behind it. A court decision on the final cost of the environmental damage under the US Clean Water Act could still reach a maximum of $17bn and the latest year-end provision BP made was $3.5bn. No date has yet been set for the next critical phase of proceedings. However, investors were pleased by the company's plans to return more cash to shareholders via dividends and buybacks. In that regard, the surprise 5.6% increase in the quarterly dividend to 9.5 cents shows a management team more confident in the company's long-term outlook. As well, the improvement in the cash-flow shows that the oil business underneath is becoming more efficient. So, despite revenue falling during the next three years as disposals take place, profitability and cash flow are expected to improve. The shares are still a third lower than just before the Deepwater Horizon disaster, since when they have largely gone sideways. That leaves them looking cheap compared with sector peers. The Daily Telegraph's Questor says that it prefers to focus on the known factors of improving cash flow that funds a 5.4% forecast dividend yield and gives the oil group more strategic options, rather than the legal uncertainties. Strangely for a FTSE 100 income stock, Questor adds, BP remains risky, but on the numbers they remain a hold.Investors in Standard Life suffered a case of Déjà vu on Wednesday, as it unveiled long-term saving net inflows that came in nearly 25% below expectations, at £2.7bn. That reminded investors of post-flotation times, when the company would regularly spring bad news on investors. Nevertheless, the chief culprit was the Global?Absolute Return?Strategic fund, or GARS, which sits within Standard Life Investments and recently saw the defection of its chief arquitect and lead manager - Euan Munro - to rival Aviva, a huge blow. Standard Life believes that the bulk of the institutional exodus as a result of Mr Munro's exit has now passed and that GARS is set to return to net inflows. Furthermore, the company continued its performance in the corporate pensions market with new business in the segment up 89% and believes that a shake-up of Britain's private pensions system should play into its hands. Meanwhile, sales outside the UK? nearly doubled with Asia the next growth market. The question for investors is how far the stock will run given its full valuation ? 14 times earnings for this year ? although the dividend yield is substantial at 4.3%. There could be better value elsewhere, with? Shore Capital tipping a switch into Legal &? General or Prudential, but there looks little reason to sell if GARS ?can be mended and no more shocks emerge, Tempus says.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.