LONDON (ShareCast) - Diageo is trading at just over 15 times 2008 forecast earnings – on a par with the European beverages sector. Solidly reliable with a strong management team to direct the group, Diageo remains a long-term investment. Buy says the Independent.

It remains difficult to recommend any consumer stock at a time when people on both sides of the Atlantic are tightening their belts, but if you need a drinking partner to share your economic gloom, you could do much worse than Diageo. Buy says the Telegraph

All three legs of Healthcare Locums staff placing business – doctors, qualified social workers and allied health professionals – have got off to a strong start in the current year. The target is to double market share to 20% over the next few years. At the current price, the shares sell on just 6.5 times forecast earnings, which seems cheap. Buy says the Independent.

Cruise operator All Leisure timed its flotation just before the squalls hit the leisure sector and is floating in calm waters while everyone else feels decidedly queasy. Swan Hellenic numbers will give it a head of speed this year. Pre-tax profits should top £11m this year and, on a multiple of about 11 times forward earnings, the shares are at a promising discount to peers says the FT.

Department store owner Beale accepts it faces another hard year. Sales in the first 11 weeks are down 6.4%. A new chief executive is coming in from British Home Stores. He clearly relishes a challenge. A series of warnings have hit the shares hard. At the current price, the business, which trades from 11 sites, is worth just £8.5m. The only upside seems to be a bid. Avoid says the Independent.

At a time when both Argos and Woolworths have complained about poor toy sales, the management of Hornby should be given credit for performing so well and promising a final quarter with sales above the same period last year. It all suggests that, even if the supply issues curb profits, the sell-off looks overdone, with Hornby trading on 12 times current year earnings and yielding 4.4pc. Hold on says the Telegraph.

BG has raced away from its bigger integrated peers due to November’s discovery of the Tupi field off the coast of Brazil. BG’s position in liquified natural gas should also provide support to the shares until Tupi reaches its potential. That spread of businesses – promising to come to maturity at different times – suggests that, even at £10.22, or a full-looking 16 times current-year earnings, BG is a solid long-term hold says the Times.

Flooring specialist James Halstead's attractions are a dominant position, with around 45% of the UK market, and a firm grip on costs. It also has a healthy balance sheet, with £33m in cash. But while the shares are an excellent investment at the right stage of the cycle, it is hard not to feel that greater wear and tear lies ahead. Avoid says the Times.

At 249p, down 47% since July, Phoenix IT shares sit at eight times next year’s earnings and have already priced in tougher times. Phoenix’s strong cash generation means net debt ogf £114m that should not be too big a concern. Hold says the Times.



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