LONDON (ShareCast) - Enterprise Inns' share price has plummeted from a year high of 774.5p to its current level, and a selective appraisal of yesterday's trading statement will make nervous reading for even the hardiest investor.

Operating at the quality end of the pub industry, it is probably suffering less than others, but like all its peers, the group is toiling in this market, and buyers should be wary. On a sector basis, the group looks good, but investors that do not like pubs, and there are many, should give it a miss. Sell says the Independent.

Serco is one of the biggest outsourcing groups in the country. It runs a plethora of services, from the Docklands Light Railway in London to looking after the UK's nuclear warheads. It is difficult to find a reason not to buy Serco: it is a strongly defensive stock and looks good value in its own sector. Buy says the Independent.

Support services group Babcock posted strong figures yesterday. Organic profit growth is running at 20%, operating margins have risen from 6.9% to 7.8% and the dividend has been increased by 43% to 11½p – matching the improvement in earnings per share. Babcock offers secure, long-term profit growth on a multiple of 14 times current-year earnings – a discount to Serco, which it closely resembles. Buy says the Times

Data management software group Invu has sorted out many of its troubles in recent months and recruited a number of highly regarded senior managers. However, with the shares already at an all-time high, perhaps buyers should wait for news of further deals for its Ergo search engine. Hold for now says the Independent.

If ever there was an industry sector at risk from the soaring oil price, dwindling consumer confidence and a strong euro, then surely it is travel. Yet yesterday’s half-year numbers from TUI Travel, Europe’s biggest tour operator, suggest anything but. The shares are trading on 12 times current-year forecast – reasonable given the pace of earnings growth. The ride could get bumpy but hold says the Times.

Car dealer Lookers looks cheap at seven times 2008 earnings and yielding 5% (albeit with £120m of debt). However, a poor near-term outlook for new cars counsels caution. Pass says the Times.

Hovis owner Premier Foods is not out of the woods yet. Fears of a rights issue or breach of covenants will stick around, at least until Premier can prove that sales volume growth - rather than just pushing through price increases - is back on track. The lack of clarity on future commodity costs and signs that retailers are becoming more aggressive on cost-cutting could weigh on the shares. Previous problems mean the stock is cheap compared to peers but investors will need more time to be convinced of a turnaround. Avoid for now suggests the Telegraph.

Galliford Try's business model, with the public sector and infrastructure focused construction business offsetting housebuilding, should offer some relief from the worst of the storm. From that perspective, the recent share price weakness looks overdone. Either way, investors would be foolish to bail out now. Hold says the Telegraph.






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