Wednesday tips round-up: BP, TUI Travel, Ferrexpo...

Last week, Bob Dudley, BP's new chief executive, hinted that the company's dividend may be restarted this year. BP suspended its dividend in June for the first time in 18 years as the fallout from the Macondo oil well accelerated. If the dividend is reinstated at the lower level expected by the market, the company will have a 2011 yield of 6.5%. This is very attractive. The shares are trading on a December 2010 earnings multiple of 6.5 times, falling to 6.1 next year. BP shares are upgraded to a buy from a hold, the Telegraph says.The outlook for TUI Travel's share price is improving. And holidaymakers, even in the depths of recession, have generally proved unwilling to sacrifice the sunshine entirely. Even in a tricky climate, TUI looks cheap. Buy says the Independent.TUI shares sell on a little more than ten times' 2009-10 earnings. Up with events, unless you take a more rosy view of the economy than discernible elsewhere, adds the Times.Swiss-headquartered Ukrainian group Ferrexpo has a world-class iron ore resource and it also benefits from being close to European steel mills. It also owns a port on the Black Sea, providing a logistical advantage. In the first six months of the year, revenues rose 74% to $526m and pre-tax profits jumped 340% to $166m as the market recovered from last year's softness. The shares are trading on a December 2010 earnings multiple of 7.1, falling to 6.2 next year and yielding 1.2%. Ferrexpo is a pure play in the iron ore market and, with its aggressive expansion plans and the positive outlook for the market, the shares are a buy says the Telegraph.Imagination Technologies designs chips for use in smartphones. It specialises in graphics, video and display processors. Yesterday, it signed a useful little deal with the semiconductor group NetLogic Microsystems. Licensing revenues, however, tend to be "lumpy" and hard to predict. The economy is also a worry and, at 37 times forecast 2011 earnings, it looks pricey. But analysts think the number of devices with its technology could double in four years. A tentative buy says the Independent.Norseman Gold raised £11.3m through a private placing yesterday. The move was well received: the offer was substantially oversubscribed. The money will go towards developing a fourth mine at the Norseman Gold Project in the eastern goldfields of Western Australia. Gold prices are set to stay high for a while and that should underpin sentiment around Norseman, so buy says the Independent.Printer St Ives spent just short of £12m on Occam, which takes the group into database management and allows it to target its output more efficiently, and another £12m on sundries, but still reduced debt by more than £16m to only £2.7m, offering more scope for acquisitions. The shares sell on a relatively cheap seven times' this year's earnings but it still seems too soon to chase says the Times.AEA is paying $83 m(£52.5m) for ERG, a consultant based in Lexington, Massachusetts. For the purposes of comparison, AEA had a market capitalisation of less than £40m at the weekend. Technically, this is a reverse takeover, although it isn't because the AEA board remains to run the business and the ERG management will continue doing what it does. At the same time, the company is being restructured to allow the payment of dividends again, as well as action on the £140m pension deficit. Despite that pension overhang, AEA looks like a bet worth backing 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.