Tuesday tips round-up: Mondi, Helphire, Lancashire

Mondi is one of those perennial biggest companies that rarely makes the headlines, but that may be about to change. The papermaker, which is listed in Britain and in Johannesburg, sits just outside the FTSE 100, but a whacking 111% increase in its full-year dividend to 20 cents yesterday and a renewed focus on returning cash to shareholders might bring it to the forefront of investors' attentions. It will be vulnerable again when the next downturn hits but, for the moment, buy on weakness in the share price, the Times advises.Helphire, which supplies replacement vehicles to drivers involved in accidents that were not their fault, posted pre-tax profits down by 37 per cent to £3.6m for the six months to 31 December, driven by the termination of a number of contracts and lower accident rates. Given that Helphire only trades on a forward earnings ratio of just over 4, some may be tempted to buy their shares. But the Independent thinks further evidence is required that it is on the road to recovery. Hold, the paper says.Lancashire Holdings has only been around since 2005, when it was founded at the end of a damaging year for the insurance industry, with Hurricane Katrina one of many large natural disasters. Yet despite its youth, the Lloyd's of London insurer has performed impressively. despite the recent rally, there still seems to be scope for further gains. Buy, says the Independent.The much anticipated flurry of consolidation among Lloyd's of London insurers has not quite materialised, despite a steady fall in insurance prices dragging down company valuations. One company that claims it would definitely not be taking part in any bidding is Lancashire, which is choosing to return its cash to shareholders instead. Yesterday, the Bermuda-based company reported 2010 pre-tax profit of $339.2m, down 12.6%from 2009 but better than the $272m predicted by analysts. Its stock has risen by close to a third in the past year, making its current valuation seem rather full. Hold, says the Times.Yesterday was John Wood Group's first set of results since the energy service company sold its well support division for $2.6bn and bought PSN, which will add to its "brownfield", or more mature fields, business. The company has a good geographic spread, so should be relatively safe from any further unrest in the oil-producing regions of the Middle East and Africa. Much of this positive news is reflected in the share price, which has risen 80 per cent in the past year. Hold, the Times says.John Wood's shares, that trade on multiples of around 8 times enterprise value to Ebitda (earning before interest, tax, depreciation and amortisation), leaving them slightly behind the sector, which is on more than 9 times, according to Numis. The strong balance sheet, the outlook and the upcoming cash return for shareholders only, adds to the attraction, making this a solid investment, in our view. Buy, says the Independent.Xcite Energy is an oil explorer and developer that is focussed on the oil resources in the North Sea on the UK continental shelf. Xcite, to all intents and purposes, is a one-product concern. The Block G/03B, known as the Bentley heavy oil field, is expected to enter production by the end of this year, moving up to being on full stream by 2013. Forecasts suggest Xcite has a "risk" net asset value of about 624p and, as a result, it is thought the discount is too large. Buy, says the Scotsman.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.