LONDON (ShareCast) - Centrica has underperformed recently and the worst of the market conditions are already in the price - in fact, investors are currently attributing little value if any to British Gas.

Assuming the company can push through more price rises, things are not yet that bad. With a 4.8% yield and on around 10 times earnings, the stock looks good value. Buy says the Telegraph.

Underwriter Hiscox's gross written premium dropped by 10% to £321.3m in the last three months, but it is a diverse business and a strong one - hence the 4% yield. With a price earnings ratio of around seven times, Hiscox is at a marginal premium to the sector, but the shares are worth holding onto. Hold says the Telegraph.

At present Hiscox appears to be fairly valued, and it is difficult to see where additional momentum will come from. Existing investors need have few concerns, but for those considering a buy, there may be juicier alternatives elsewhere. Hold says the Independent.

Yesterday’s North Sea discovery by Dana Petroleum may not have moved shares in the mid-cap oil producer as much as its predecessor – they gained 17% on the day last month that it announced the West Rinnes find – but it was welcome, all the same. The pace of Dana’s exploration programme offers sustained interest: not least from the Eitri field in Norway, due this year. The problem is that, at £18.83, more than double their level last summer, much of that potential is already priced into the shares. Hold says the Times.

Care home operator Southern Cross gained nearly 6% as the company disclosed that it had secured a better-than-expected annual fee increase of 5% for more than 85% of its beds. But there are worries that Southern’s growth rate will slow as opportunities for big acquisitions become fewer and that falling commercial property values will hinder its sale-and-leaseback model. With the second half accounting for 70% of profits, and operational gearing high, the shares are best avoided for now says the Times.

The United Kingdom has an increasingly ageing population, and that has to be good for the providers of homes for the elderly. That makes Southern Cross, which operates a total of 37,321 beds across the country, a defensive stock that should encourage those worried about being exposed to credit crunches writs the Independent. Buy.

Logistics group Stobart has secured three acquisitions since joining the stock market last September through a merger with Westbury Property Fund. The common aim is to extend Stobart’s presence with “multi-modal” capabilities that should enhance the efficiency of freight movements. Stobart has scale and an innovative strategy. Buy says the Times.

It is early days for Stobart and with no comparative numbers to look at it is difficult to see exactly how it is doing. However, the group seems well-placed with a defensive business model. Buy says the Independent.




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