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Thursday tips round-up: Barratt, Genus, Centrica

Thu, 13th May 2010 06:05
Competition for land in the South ? towards which Barratt Developments has tilted its axis ? is getting fierce, and the impact of deficit-reduction measures in a country in which one in five works for the State is unclear. At 123¼p, up 6¾p, there should be better times to buy, according to the Times.The betting must be that there are few people who can claim to have ever met a farmer who says business is booming, but an update yesterday from animal breeding outfit Genus would suggest otherwise. The company said that it had traded in line with expectations during the first four months of the year, and that in some markets, particularly Latin America and China, sales of products such as dairy semen, of all things, was booming. The Independent would argue that Genus has been somewhat overlooked by the market and that the recent high marks from analysts will boost the stock. Buy.Full-year gas production at Centrica is expected to be about 300bn cubic feet equivalent. Gas and oil volumes produced in the first quarter were 59pc higher than in 2009, reflecting the output form the purchase of Venture. The company is also a solid yield play. The current prospective yield for this is year is 4.7pc, rising to 5pc in 2011. This is well worth having. Trading on a December 2010 earnings multiple of 12.4 times, falling to 11.4 next year, the shares are a buy, says the Telegraph. From September, trains to London will begin stopping at Southend airport, where Stobart is extending the runway. Depending on the right airline tie-ups, the company thinks it could handle one million passengers a year ? in addition to freight ? by 2012. Meanwhile, net debt has fallen by one fifth to £97 million and a maintained dividend provides a 3.9 per cent yield. However, at 155p ? up more than 50 per cent since October ? to nearly 16 times earnings, the shares have travelled far enough for now. Take profits, says the Times.Dimension Data's revenues were down 3.7 per cent in constant currency in the six months to the end of March, which was generally viewed as "solid" by the analyst community. So hold, says the Independent.Dialight stands out like a beacon. Shares in this small-cap maker of specialist white LED strobes for mobile phone masts and other tall structures have surged 74 per cent since they were recommended here last summer ? comfortably ahead of the 19 per cent gain in the FTSE all-share over the same period. Yesterday's first-quarter trading update helped to send them still higher. Last month's purchase of a Danish developer of light systems for wind farm towers should provide further momentum. At 258¾p, or 14 times 2010 earnings, hold on, says the Times.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. Genus Centrica Dialight

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