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Thursday tips round-up: Charter, PZ Cussons, Shell

Thu, 11th Jun 2009 06:00
It may be the case that investors do well in the long term from holding Charter shares, but with even chief executive Mike Foster admitting there is no end to the current woe in sight, there is more to be made by holding other stocks at the moment. Sell, says the Independent.PZ Cussons has little debt and its plan to grow earnings by 10 per cent is on track. Its finance director Brandon Leigh argues that special offers, which put little pressure on margins, are a good way of combatting consumers trading down to private label brands. Buy, says the Independent.The oil price has lifted shares in Royal Dutch Shell significantly over the past month and the shares are trading on December 2009 earnings multiple of 12.2 times and yielding 5.9pc. Hold, says the Telegraph.Anyone who has worked in the City will be familiar with the work of Interior Services Group (ISG). This AIM-listed company, once part of Stanhope, carries out about a quarter of the fit-outs and refurbishments of London's commercial offices. ISG's order book has so far held up well (it last reported £365 million of work for its next financial year), on which it will provide greater clarity in next month's trading statement. The more obvious draw is what appears an anomalous valuation: a forward multiple of four, a yield of 10 per cent on a dividend that is twice covered by forecast earnings and last reported cash of £22 million - or half its stock market value. At 134½p, up 3½p, buy, says the Times.Shares in Intercede, the company that makes the software that fits with ID card systems, were up 9.3 per cent yesterday after the group's solid full-year results. The stock was already pricey, even before yesterday's spike. However, with demand for ID cards on the increase, buy, says the Independent.Trading in Ireland is dire (if mostly offset by the euro) and Halfords has scaled back its roll-out ambitions in Central and Eastern Europe. But at 343½p, down 2p, or 11 times earnings, and yielding 5 per cent, the shares remain a solid hold, 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. Halfords Intercede Pz Cussons

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