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S&P Equity Research downgrades Old Mutual from hold to sell, target price cut from 152p to 99p.

Standard Life sees profits rise 44% in first half By Benjamin Chiou Date: Wednesday 10 Aug 2011 LONDON (ShareCast) - Operating profits at savings, investments and pensions firm Standard Life jumped 44% in the first half while the company undergoes its "three-year transformation". On an International Financial Reporting Standards (IFRS) basis, operating pre-tax profit from continuing operations climbed from £182m to £262m in the six months ended 30 June, while fee-based revenue increased 14% from £535m to £611m. Fees now account for 75% of total income, up from 73% in the first half of 2010. The remaining income comes from its margin on the spread/risk business, which grew from £198m to £207m. Diluted IFRS operating earnings per share rose from 6p to 9.2p. Standard Life is now in the middle of delivering its strategy. "We are focused on following our simple model: increasing assets, maximising revenues, reducing unit costs and driving increased cash profitability," the firm said. Group assets under administration reached the £200bn mark, up from £196.8bn the year before. "We are investing to strengthen our market positions and have launched a number of innovative propositions to respond to the changing needs of our customers, and their advisers. We have improved our efficiency and see further opportunities to do more. We are competitively positioned to benefit from market changes and the new regulatory environment," said chief executive David Nish. The interim dividend was raised by 5.7% to 4.60p per share.

http://www.investegate.co.uk/Article.aspx?id=201108100700080150M

Strong exports secure sales increase for Latchways Date: Wednesday 10 Aug 2011 LONDON (ShareCast) - Shares in Latchways, the maker of devices to stop roofers and window cleaners falling, jumped after it said trading has been robust, with strong export markets helping to lift revenues. Latchways said it has seen strong growth in mainland Europe. “As expected, conditions in the UK construction market remain weak, affecting both product sales and installation margins in our UK Safety Services division,” the company said. “This has been more than offset by the continued growth in export markets.” At 9.36am, shares in Latchways were up by 6.5% at 70p.

Dragon Oil ups output to boost profits Date: Wednesday 10 Aug 2011 LONDON (ShareCast) - Dragon Oil ramped up production in the six months to 30 June, helping the Central Asia-focused oil group to benefit from the soaring oil price. Profit for the period totalled $309.4m, up from $137.6m over the same period the previous year, on revenues that soared to $527.4m from $276.3m. The company is paying a 9 cent interim dividend, having not paid one last year. Average daily production was up by a quarter from the same period last year at 58,000 barrels. “Revenues were underpinned by a 32% increase in the volume of crude oil sold, reflecting impressive production growth, and the benefit of strong realised oil prices,” Dragon said. At 10.00am shares in Dragon Oil were up by 6.4% at 27.5p.

http://www.growthcompany.co.uk/recommendations/1646808/telecitygroup.thtml

"Exporting coal under the Trasteel deal would represent a major milestone for Strategic, which lost £2.7m in the year to February but still has £2m in the bank. Floated at 30p in 2007, the shares now languish at 13.63p, where they could be with a high-risk medium-term punt if all goes well with Elitheni. "

http://www.growthcompany.co.uk/recommendations/1647038/4imprint.thtml

http://www.growthcompany.co.uk/recommendations/1645668/rightmove.thtml

Funny how the same ideas come around again. Several decades ago, vertical integration — owning every step of the production process — was the norm. Then that gave way to employing contractors and squeezing them to gain efficiencies. Now, in mining, the old model is coming back into vogue: BHP Billiton is paying $735 million for the contractor responsible for almost 70 per cent of the production at its three huge iron ore operations in Pilbara, Western Australia. BHP also has to fund $80 billion of capital expenditure over the next five years, and there must be some chance that falling asset prices will spark further deals in the near future. More will be known when the company announces results in a fortnight, but the shares, a Tempus tip for this year, should be held, according to Tempus at the Times.

Volatile equity markets can create investment opportunities and I believe this to be the case with outsourcing specialist Serco. While Serco has an enviable track record of delivering shareholder returns, this has not been the case over the past year with the share price generally stagnating and more recently moving lower along with the market. The de-rating and more recent market related price movements mean the shares are trading on a prospective 2012 price-to-earnings ratio of about 11.6x, significantly below its historical average. I consider this is just too low for a company offering good-quality defensive earnings, which are forecast to increase in a low-growth economic environment. Buy, recommends the Scotsman.

When the demerged shares in Punch Taverns and Spirit Pub Company started to trade at the beginning of last week, both were quite perky, ending the day just ahead of where they started. The argument that splitting the pub estate into two would persuade the market to value them at more than the combined entity seemed reasonable. Punch may come good, though this is option money you should be prepared to lose. Spirit shares look cheap, but only if you think the positive self-help by management will be enough to counter any further falls in consumer spending, according to the Times.

When the demerged shares in Punch Taverns and Spirit Pub Company started to trade at the beginning of last week, both were quite perky, ending the day just ahead of where they started. The argument that splitting the pub estate into two would persuade the market to value them at more than the combined entity seemed reasonable. Punch may come good, though this is option money you should be prepared to lose. Spirit shares look cheap, but only if you think the positive self-help by management will be enough to counter any further falls in consumer spending, according to the Times.

The British Retail Consortium and KPMG survey yesterday confirmed what almost all non-food retailers have known for some time: life is tough, particularly for those selling "big-ticket housing-related purchases". Topps Tiles, the UK's largest tile and wood flooring specialist, is also battling a stagnant housing market, which is being hit by low levels of transactions. Those tempted should also note that consumer spending concerns have floored the shares this year, so much so that they now trade on a forward earnings multiple of just 8, a discount to the rest of the sector. This, and the positive mood music on margins, makes us believe Topps is worth a punt in these turbulent times, recommends the Independent.

While it may still be best-known for brands such as the Financial Times and Penguin Publishing, under the firm management of Dame Marjorie Scardino, Pearson has been transformed into an education powerhouse. At the end of last month, Pearson announced revenues were up 6 per cent in the first half to £2.4bn over a year earlier. Profits were up a fifth to £208m as education profits rose 30 per cent. Turning to the shares, Pearson has outperformed the European market by more than a fifth so far this year. Still, UBS puts the stock on a multiple of 7.5 times estimated earnings for next year, which, as the broker points out, "grossly undervalues the resilience and potential cash-flow growth". We quite agree and would make the most of the market's mistake by adding to our portfolio, the Independent suggests.

NWF (NWF) reported pre-tax profits of 7.6 million pounds for the year ended 31st May, up 7% year-on-year, on the back of revenue growth of 22.1% to 463.8 million pounds. The agricultural and distribution group noted a record operating profit in its feed division of 4 million pounds, up from 2.1 million pounds, thanks to the increase in commodity prices and by improving efficiency in its mills. Chairman Mark Hudson commented: "With a very stable operational and financial base we continue to target development opportunities

http://www.investegate.co.uk/Article.aspx?id=201108090700119795L

Fidelity European Values (FEV) reported a 9.4% increase in net asset value over the 6 months ended 30th June of 1,461.98p, compared to 1,335.78p at the end of December 2010. The investment trust noted that European equities advanced over the period, particularly in healthcare, while technology and industrials lagged. The group added that European companies are in a better shape that the economies, and the believes it will be able to sustain dividend growth in all economic environments

http://www.investegate.co.uk/Article.aspx?id=20110809141351PFA3B

Carnival (CCL) has been upgraded by Shore Capital, from "sell" to "hold", with a target of 1,803p. The broker notes that the cruise ship operator has under-performed the market and that the share price has fallen bellow the book value. Additionally, Shore believes that the recent fall in oil prices will improve the company's margins. However, its exposure to the UK, Spain and Italian markets leads the broker to worry about revenue yields.