Sunday tips round-up: BP, Kenmare Resources, Abcam

Date: Sunday 14 Mar 2010

As one analyst said last week, "at last BP has bought a ticket to the carnival". The carnival he was referring to was, of course Brazilian oil. Most oil majors have a presence in the deep-water prospects in the area – with BP conspicuous by its absence.

The group's shares are trading on a December 2010 earnings multiple of 9.1 times, falling to 7.9 next year. The shares were first recommended at 487½p on February 4 last year and they are up 27pc compared with a market up 33pc. Investors who bought at that time would have locked in an impressive yield of more than 8pc. The rating remains buy, says the Telegraph.

Some Kenmare shareholders were disgruntled by the company's £180million financing. They buy into the logic of expanding, but they were irritated because the new shares were priced so low and the stock is now trading at just 13.75p. For new investors however, the current price offers an exciting opportunity to pick up shares on the cheap.

This company has learned plenty of lessons from the past two years and the money it has raised will help turn it into a leading player in the market at just the right time. Buy, says the Daily Mail.

Midas Extra, the midweek online investment column from Financial Mail, recommended Abcam in February 2009 when the shares were 600p.

Today they are 1140p, so investors who bought last year have gained by 90 per cent. At this level, they should consider selling half their holding, but keep the rest as Abcam has further to go.


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.

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