Date: Thursday 05 Jun 2008
LONDON (ShareCast) - At 135.9p, or 13 times current-year earnings, Kingfisher’s recovery has already been priced in. That seems far too forceful, given the damage that could yet be done by consumer indebtedness. Keep away, says the Times.
Should the UK slump into a recession, IG Group would be affected. But it may be cushioned because its clients tend to be wealthy investors with experience - if hopefully not expertise - of the stock market. IG trades at a discount to exchanges and internet stocks. Even with some uncertainty about the future, IG continues to be worth a punt. Buy, says the Telegraph.
The Independent says that for investors there does not seem to be a huge amount of juice left in the shares, and if volatility slows, IG Group will look less attractive. Hold for now.
Northumbrian Water may have secured the goodwill of its customers – it has pledged to raise bills by less than its regulatory allowance – but investors may feel more ambivalent. For a well-run, pure-play water company, 335¾p, or 13 times current-year earnings, is no more than fair value. Hold, says the Times.
Opsec's brokers at Oriel say that the group is undervalued and is a "clear buy". Investors would be wise to wait for a trading update to see if the government has got its chequebook out. Hold, says the Independent.
Sportingbet, which at 37¼p trades at an enticing seven times next year’s earnings, is doing all the right things, but with so many jurisdictions retaining, at best, an equivocal attitude to internet gambling and with the poker boom having lost its fizz, this stock is only for the brave, according to the Times.
With the share price fall yesterday, UTV shares trade close to the theoretical ex-rights price. Treat UTV in the same way you would the "chuggers". Smile politely, point to your watch and cross the street, says the Telegraph.
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