LONDON (ShareCast) - ASOS has proved to be the great online survivor - but if online sales growth is slowing, it is hard to justify the racy rating.
Next yesterday cautioned that not only is the cost of attracting online customers rising, but converting online window shoppers into customers is increasingly difficult. That could also be bad news for ASOS. Sell says the Telegraph.
Next,meanwhile, has low gearing, leaving scope for further share buybacks, and an incentivised management team that has delivered profit growth in tougher times. With their payday more than two years away, the shares, at 13.3 times 2008 earnings, have further to go. Hold says the Times.
Analysts reacted positively to Standard Life's results, but a lack of strategic news sent the shares down. At this level they trade on 12½ times forecast earnings with a prospective yield of 3.6%. Floated at 230p last July, the shares have performed fairly well. Hold says the Telegraph.
The stock market has been alive with rumours that the Dubai- based outfit that held talks aimed at a takeover of Premier Oil last year is about to return for the company. They are said to have offered around 1,400p a share, while the oil explorer's management are rumoured to want closer to 1,600p.
Annual results from Premier yesterday slightly disappointed the City. The company remains widely tipped to lose its independence before the end of the year. Now is no time to be bailing out of the stock. Hold says the Independent.
Drug maker Hikma, which was founded in Jordan, has enjoyed double-digit sales growth since 1996. Yesterday, it posted a stellar set of full-year results with a 17% rise in pre-tax profits to $75.6m. Hikma manufactures branded and non-branded generic drugs across 34 countries. With 176 products already under its belt after 23 launches last year, and a further 88 in the pipeline, there is plenty of news to excite investors. Buy says the Independent.
M&C Saatchi, the advertising agency, has demonstrated that the loss of the British Airways account led to only minor turbulence for the business. New offices in places like Paris, Berlin and the US will make a positive contribution to the bottom line in 2007. That is why analysts expect company profits to jump by a third this year, to £10.3m. Buy says the Independent.
Hedge fund group RAB shares trade on 13 times forecast 2007 earnings; the doubling of the dividend takes the yield to 1.6%. Investment performance has slowed in the first few weeks of 2007 but its management's long-term track record gives reason to hold on for now says the Times.
Styles & Wood, an Altrincham-based shopfitter, bought itself out from Wembley for £2.2m 12 years ago, since when it has not looked back. What sets S&W apart is that it is a project manager rather than a jobbing builder which, combined with tie-ups with the likes of Waitrose, Boots and HBOS, gives it relatively predictable earnings. With the latter set to rise 37% this year, and 28% next, a 14.8 times multiple for 2008 is not unreasonable. Buy says the Times.
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