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http://www.investegate.co.uk/Article.aspx?id=201201100730082495V

Seymour Pierce maintained its "buy" recommendation for catering company Compass (CPG) following the announcement of a 500 million pound share buyback scheme. The broker is impressed that the firm has net debt of only 779 million pounds despite spending 400 million pounds on acquisitions over the year. Seymour Pierce adds that the firm remains cash generative and forecasts net debt to equity to fall bellow 20% in 2012, compared to 22.8% at the end of September. Shares in Compass grew 7.5p to 612.5p.

Daniel Stewart reiterated its "buy" recommendation for Prosperity Minerals Holdings (PMHL) with a 211p target price. The broker noted that the iron ore operator and real estate developer presold 70 of 184 apartments at its Oriental Landmark development in China at an average price of 32,000 Chinese yuan (3,274 pounds) per square metre, higher than Daniel Stewart's forecast of 27,000 yuan (2,763 pounds). The broker expects the company to begin preselling of all four of its residential blocks by the end of 2012. The shares gained 1p to 91p.

Galliford Try (GFRD) is Panmure Gordon's key housebuilding pick for 2012, with a target price of 581p. The broker recalls that it called Galliford its top housebuilding stock in January 2011 and that it outperformed the FTSE All Share by around 55%. Panmure believes that the group still offers value for investors, benefiting from strong demand in the south of England. Panmure also notes that 74% of its land is full margin, which is the best in its peer group. The broker believes that the firm is the most undervalued in the sector, with an EV/EBITDA multiple of 6 times against a sector average of 8 times and trading on an earnings multiple of just 8 times, compared to an average of 12.2 times. Galliford shares lost 10.6p to 467.4p

First Derivatives (FDP) is one of Arbuthnot Securities' top picks for 2012, with a 660p target price. Following significant investment in infrastructure in 2011, the broker expects the software developer to secure several contracts in all four of its core markets. Additionally, Arbuthnot expects contracts already signed in the first half of its 2012 financial year to significantly improve earnings. While the capital expenditure will have an impact on free cash, the broker believes that a prospective earnings multiple of 11.2 times is too cheap. Shares in First Derivatives were unchanged at 480p.

10th January 2012 Analyst: Dr Michael Green Email:michael.green@gecr.co.uk Tel: 0207 562 3350 Allied Gold Mining - Annual production expected to climb by 65% to 180,000 ounces in 2012. Strong Buy at 156p with a 312p target price

SkyePharma's Chief Executive Officer, Axel Müller, said: "The alliance announced last year with Aenova, which is one of Europe's leading contract manufacturing organisations, provided an important opportunity to increase the utilisation of our Lyon facility, generate rental income and enable SkyePharma to focus on its core business of developing drug delivery solutions for the global pharmaceutical industry. The additional agreements announced today will enable SkyePharma to operate in Muttenz with lower fixed costs whilst continuing to offer clients the full range of our innovative services and solutions. "We regret the need to reduce the workforce at our Swiss operations. However changes are essential to ensure that we have the correct staffing to meet demand and remain competitive. We are pleased to have reached an agreement with Aenova which may offer opportunities for a number of employees affected by the consultation process."

SKYEPHARMA PLC - REORGANISATION OF SWISS OPERATIONS LONDON, UK, 10 January, 2012 - SkyePharma PLC (LSE: SKP) today announces that the SkyePharma Group ("SkyePharma") has entered into a consultation process which could lead to a reduction of approximately 20% of its 101-strong workforce in Muttenz, Switzerland. The proposed steps are intended to improve SkyePharma's competitiveness and generate CHF2.6m (£1.8m) of operating cost savings each year. Separately, the Group has entered into agreements with the Aenova Group to sub-let part of its laboratory space in Muttenz and sell some of its surplus laboratory equipment to Aenova. Aenova plans to use the space to expand its own non-competing oral product development activities and has agreed to consider offering positions to some of the SkyePharma employees potentially affected by the headcount reduction. The changes will not affect relationships with existing or potential customers and the Group will continue to provide its full existing range of innovative oral and inhalation drug delivery solutions. In future, SkyePharma intends to make greater use of third-party sub-contracting for certain aspects of the oral product development process and Aenova has agreed to be a sub-contractor for this purpose. There will be no transfer or disposal of any business, technology or intellectual property to Aenova and Aenova's oral product development activities do not directly compete with those of SkyePharma. In August 2011, SkyePharma leased its entire pharmaceutical manufacturing business and premises at Saint Quentin-Fallavier, Lyon, France, to the Aenova Group for an initial period of two years, extendable for a further three years. The new agreements between SkyePharma and Aenova in Switzerland have reinforced the links between the companies and could lead to collaborative development opportunities.

http://www.investegate.co.uk/Article.aspx?id=201201100921112781V

or possibly latest broker target - Liberum Capital initiates buy on Sterling Energy, target price 62p

High street giant Marks & Spencer rose after seeing sales (excluding VAT) rise 2.4% in the final 13 weeks of 2011. As for the all-important like-for-like sales comparisons, overall, the UK stores were up 0.5%, with General Merchandise down 1.8% but Food up 3.0%. Another retailer, FTSE 250 department store chain Debenhams, also issued a trading statement today and saw its share price jump 10%. The firm reported 6.5% improvement in like-for-like (LFL) sales including VAT in December. “All in all, we’ve seen some cracking results this morning from two of Britain’s leading high street retailers," said Cavendish Asset Management's Senior Fund Manager Paul Mumford. "The gloom and doom factor regarding Marks & Spencer and Debenhams was palpable last week; commentators and analysts have were in the main deeply pessimistic ahead of today’s results. Yet in both cases results have exceeded expectations, and we are seeing relief rallies as a result," he said.

Commenting on trading for the second quarter, Alistair Cox, Chief Executive, said: "This quarter we delivered a good performance in the context of an increasingly difficult macro-economic environment, which has particularly impacted candidate and client confidence in the permanent recruitment market around the world. Our International business, which delivered strong growth of 15%*, now represents 70% of Group net fees and we are the market leader in both Australia and Germany, the two most attractive specialist recruitment markets in the world today. In the UK, the environment remains difficult, especially in our Banking and Public Sector-related specialisms. Looking ahead to 2012, the macro-economic outlook is increasingly uncertain. We will therefore focus on maximising our profitability and cash generation until the outlook is more positive, taking advantage of our flexible cost base to react to changes in each of our markets as they occur. With our global footprint and market leadership in so many countries, we are well positioned to manage through this period of uncertainty and take advantage of the long term opportunities available to us around the world."

Highlights · Good Group net fee growth of 8%* versus prior year, despite market conditions becoming increasingly challenging as a result of heightened global macro-economic uncertainty · Continued strong performance of our International business, which grew by 15%* and represented 70% of net fees in the quarter · Strong growth of 20%* in Continental Europe & Rest of World, driven by Germany and France, which grew net fees by 28%* and 20%* respectively · Robust net fee growth of 11%* in Asia Pacific, which included 10%* growth in Australia & New Zealand, and 16%* growth in the rest of Asia · Net fees decreased 7% in the UK & Ireland, with private sector net fees declining 4%. Public sector net fees declined 16%, and remained broadly stable on a sequential basis · Group consultant headcount increased 1% in the quarter

http://www.investegate.co.uk/Article.aspx?id=20120110070000PD356

Household products group Reckitt Benckiser was given a boost on Tuesday morning by Credit Suisse, which reiterated its outperform rating on the stock. "We believe that Reckitt’s business model is still healthy and concerns over the sustainability of margins are overdone."

Panmure Gordon and Peel Hunt seem reasonably pleased with the latest statement from high street titan Marks & Spencer (M&S), but both brokers have maintained their hold ratings on the stock after leaving their profit forecasts unchanged. Panmure said that with its valuation models pointing at a share price of around 340p, at today's 316.5p level, the stock looks fairly valued for now. Panmure keeps a target price of 307p and maintains a hold rating, saying that while M&S may have an attractive dividend yield, it prefers to direct investors to sector peers Dunelm, Next or ASOS. Peel Hunt has said that while General Merchandise sales were weak, these were offset by a stronger performance in Food. "M&S was clearly more promotional and acknowledges gross margin investment (not yet quantified), although this is expected to be offset by yet further cost savings," said analyst John Stevenson. The broker keeps its hold rating and 350p target price.

The Times’s Tempus column looks at house builder Persimmon. In its latest trading update the company said it expects a 50% increase in full year pre tax profits. Persimmon has also been scrupulous in cutting costs, with its margins expected to rise from 8.2% to 10% between 2010 and 2011. With two big government schemes intended to get the housing market moving (a shared equity programme and a 95% mortgage guarantee scheme) Tempus believes, for those of an optimistic bent, Persimmon could be a buy.

The Independent’s Sharewatch column also looks at Persimmon. It points out that completions, although flat for the full year in 2011, picked up significantly in the last six months. Additionally, it quotes brokers Panmure as saying the shares are at a significant discount to the net asset value, and while conceding that the yield forecast is weak (just 2%) the growth prospects for Persimmon make it a buy.

Kantar to acquire majority stake in Oasis Insights, an independent market research business in Pakistan WPP announces that it has agreed to acquire, through the Kantar network, a majority stake in Oasis Insights (Private) Limited ("Oasis"), an insight and consultancy business based in Karachi, subject to regulatory approvals. Founded in 1996 by Mr Moazzam Al Qadri, Oasis offers insight and consultancy services to clients across all business sectors. Oasis employs 105 people and clients include Engro Foods, Mobilink, PTC, Ufone and Unilever. Oasis' revenues for the year ended 30 June 2011 were approximately PKR 254 million, with gross assets at the same date of approximately PKR 109 million. This investment continues WPP's strategy of developing its services in fast-growing and important markets and sectors. Pakistan is one of the fastest-growing markets in the world, identified by Goldman Sachs as one of the Next 11 economies to watch. WPP businesses (including associates) in the Next 11 markets generate revenues of more than US $700million and employ more than 9000 people.

http://www.investegate.co.uk/Article.aspx?id=201201100700182369V