Wednesday tips round-up: Legal & General, Marston's, Drax

Life insurance is a complicated business, says Legal & General's chief executive Tim Breedon, adding that that explains the relative cheapness of his company's stock. The shares got even less expensive yesterday, when they fell 4.75% after the group's first-half results.Complicated accounting procedures and the lack of understanding among some analysts contributed to the fall in the share price, he says. The next few months are likely to remain tough, but the stock is cheap enough to make a speculative bet worthwhile. Buy says the Independent.The problem for Moneysupermarket.com is that its key businesses have been credit crunched. With mortgage finance having dried up and personal loans harder to come by, fewer people have been hunting down bargains. That's had a knock-on effect on insurance-related searches too. Other revenue streams have also suffered. Moneysupermarket.com does look highly valued at around 18 times 2009 earnings. Still, threats of competition from internet giants have not yet become a reality. This is a growth stock to put away for the long term. Buy says the Independent.Pub group Marston's put out another set of steady-as-she-goes numbers yesterday, saying that like-for-like sales in the six months to the start of August were up 2.3 per cent, with a 6 per cent rise in food sales. Offering a dividend yield of 6%, investors are getting a bargain. Buy says the Independent.Too much of power station group Drax's fate lies out of its hands ? not just power prices but the funding costs of its proposed biomass plants and the shape of future environmental legislation. At 429¾p, or six times 2010 earnings, and yielding 3.6%, avoid says the Times.Cookson has been radically reshaped (it has shed eight factories and 3,200 jobs), and is highly geared to a recovery in US and European steel production. However, at 365p, or 18 times 2010 earnings, and with no dividend on offer, those merits are priced in. Pass says the Times.Betting shops may be more resilient than many high street outlets but, as William Hill's profits downgrade shows, they are far from immune. However, a 10% slide in the share price to 168p, or less than eight times earnings and yielding 5.4%, marks a good point to buy says the Times.The Telegraph recommends that can maker Rexam investors take up their rights and await the upturn. The rights issue was a brave move which reassures investors of the group's financial strength, it adds.RM, an IT provider for schools, trades on a September 2009 earnings multiple of 11.6 times, falling to 10.2 next year. They are currently yielding 3.7% and the rating remains buy. 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.