Wednesday tips round-up: BT, Shell, Electra...

BT recently reported an excellent set of operating figures; debt continues to fall; there has been good news on its pension deficit; and there is a chance the dividend could now offer real growth.As debt is reduced, the pension hole managed and its credit rating improves, the company should be able to increase the dividend further. Indeed, the company expects to meet its target of free cash flow of £2bn in the current year - a full two years early. Buy says the Telegraph.Electra Private Equity has had a rather better recession than many of its quoted rivals, largely avoiding the huge writedowns and painful discounts to net asset values seen elsewhere. The company is raising £100m in a convertible bond issue, which is already placed. This, combined with the proceeds from the realisation of a Brazilian business, banking facilities and other inflows will offer £200m for investment. For those wanting a quick exposure to a recovery in M&A, the shares have their attractions too, suggests the Times.If, as some expect, if the price of crude hits $100 per barrel next year it will obviously be very good for the cash flows of oil majors like Royal Dutch Shell, underpinning their dividend payments and providing fire power to invest in growth. In September 2007, the oil price was sitting at about the same level it is today. The next three quarters saw the price charge ahead to near $150 a barrel. This boosted Shell's quarterly revenues from $90.7bn (£58.4bn) in the third quarter of 2007 to $131.4bn in the second quarter of 2008 - a 45% rise. The earnings multiple is 9.8 times, falling to 8.1 next year. The shares are a buy for income, with a prospective yield of 5.5% says the Telegraph.Travel group Hogg Robinson yesterday produced a sparkling set of interim numbers with sales up 9at £169.2m, but pre-tax profits quadrupling to £13.3m. Underlying profits were up a slightly more sober 104% to £15.3m, but whichever way you look at it, these are good numbers. Business travel volumes are still 10-15% off where they were a couple of years ago and the shares trade on just five-times forecast full-year earnings and with a healthy prospective yield of 4%. Hogg Robinson isn't without risks but buy says the Independent.Sensor group Halma looks strong but a price of 16.8 times estimated full-year earnings runs at a 25% premium to the electronic and electrical equipment sector. Pricey, but worth holding says the Independent.Halma's exposure to relatively resilient markets has meant the shares command a premium to equivalent stocks. Although profit-taking yesterday, after a strong run, sent the price almost 5% lower, the shares still sell on almost 16 times this year's earnings. A long-term hold, but up with events says the Times.Northumbrian Water ended the reporting round for the quoted water companies on a subdued note. The company is one of the purer plays in the sector, with about 94% of revenues coming from its regulated activities. There are better returns on offer among regulated utilities, especially given Northumbrian's exposure to mounting bad debts if public sector job cuts in its North East heartland are as swingeing as some have feared suggests the Times.Real Good Food has cooked up some tasty numbers since its interims in September. It was particularly positive about bakery business, Renshaw, which is "having an exceptionally good year," driven by substantial demand in the home baking and sugar-craft sectors. The company's earnings multiple of 5.4 for 2011 looks tempting but there is no sign of a dividend. Hold says the Independent.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.