Wednesday share tips: ENRC, Resolution, Kazhakmys

ENRC may fall victim to suspicion by association to Kazhakmys, even though it was the latter's share price which yesterday got knocked down after announcing a $2.2bn write-down on its stake in rival copper miner ENRC. More poignantly for investors, the shares have also been under great pressure and it is well known that its Chairman and Chief Executive have pledged their shares for loans unrelated to the business. Hence, Lex wonders aloud this morning whether the same might not be true for ENRC. Shares of insurer Resolution remain attractive. The company sports a dividend yield of 7.8% - which is fully covered - and guidance for an improvement in cash flow point to sustainability, unlike at peers RSA and Aviva. That is true even if profits came in slightly below forecasts. Its UK business is firing along, with new business up by 125% in the most recent period. As well, the Board has abandoned an earlier scrip dividend option, which would have been dilutive for shareholders. By the end of the year Resolution should be where it wants to be, and that near-8% yield remains attractive, The Times's Tempus says. Yesterday's yearly figures from Kingfisher saw pre-tax profits fall by 11% and like-for-like revenues down by 3%. However, the company put those metrics down to a motley assortment of one-off factors. Further, it believes that if more people can get back on the KK housing ladder then do-it-yourself (DIY) skills and demand will follow. As well, the outfit has a strong balance sheet, is beginning to take remedial actions to lift sales per square foot and hints at returning capital to shareholders. At 12 times forward earnings the shares are not pricey, but that assumes a quick fix to structural problems, which inherently tend to be anything but. 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.AB