Date: Wednesday 26 May 2010
John Dunsmore professed himself “completely knackered” yesterday after his first 15 months running the Irish cidermaker C&C Group.
Corporate activity though has transformed C&C’s prospects. While the economic outlook either side of the Irish Sea remains uncertain, the revamped C&C looks well-placed. The shares have doubled to €3.21 since Dunsmore and his former S&N colleagues were parachuted in, but, even at 13 times current-year earnings, they offer strong potential upside. Buy says the Times.
The difficulty for banknotre printer De La Rue is that profits look likely to head backwards from here. At 893p, the shares provide a 4.7% dividend yield but trade at 13 times earnings, which is up with events. There is better value elsewhere says the Times.
HSBC Infrastructure Company Limited is the sort of stock that comes to the fore when the FTSE 100 is on the slide, the yield on ten-year gilts has dropped to a seven-month low and cash on deposit earns one half of 1%. The flipside is that HICL is an unremittingly dull ride. Yesterday’s full-year results show that net asset value, at 107.4p, has not moved year-on-year. A solid 5.7% yield provides the enduring appeal. Hold says the Times.
HSBC Infrastructure Fund is not an investment for those seeking capital gains, although this is likely over time. Buy for the yield adds the Telegraph.
Last week's update from veterinary consolidator CVS Group was disappointing and prompted a slide in its share price says the Telegraph. The group's acquisition pipeline remains attractive. The stance remains buy – but this is not an investment for those seeking high-octane excitement, the newspaper adds.
It's hard to see much to dislike about results from Homeserve, whose machine appears unlikely to need the sort of repair work its customers call on it to perform anytime soon. Homeserve's shares, though,are not cheap, trading on nearly 16 times broker estimates for the full year. Hold says the Independent.
Plumbing and heating group BSS is certainly not expensive: the stock trades on a multiple of 10.8 times broker estimates for the full year.BSS is among the safest plays in its sector and that should ensure strength as market volatility continues. Buy says the Independent.
Gearbox designer Torotrak has made progress. It is in production in the US lawn mower market. And it has two prototypes under development, one under licence to an unnamed "major European bus and truck manufacturer", the other to world-leading Allison Transmission. The big decision from Allison won't be made until the second quarter of 2011. Until then, there are not really any clear earnings estimates. In another year, Torotrak may be worth a punt. Maybe. But until then, avoid says the Independent.
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