LONDON (ShareCast) - There are already some signs that for all its resilience, Whitbread may finally succumb to the economic climate. Occupancy rates at Premier Inns in some locations are showing signs of weakness, while the average spend at its pub restaurants has declined slightly.
Nevertheless, and despite the ongoing investment programme, the company remains in good financial health. The shares trade on just 14 times earnings, which even at those depressed levels are a premium to the sector. However, most analysts argue that the hidden value in the property portfolio, as well as the conglomerate structure, mean that is justified. The dividend - 2.5 times covered - presents a yield of 2.9 per cent.
With Whitbread you can take the pun of your choice. Book in or tuck in. Either way the stock is a buy, says the Sunday Telegraph.
HBoS shareholders should watch the share price carefully over the next few weeks. If it is below the rights price, taking up the rights makes no sense. If it is hovering above the rights price, tail-swallowing may be the best option for those prepared to take a long-term view, says the Mail on Sunday.
The media sector has been battered of late and with some justification. It was encouraging, therefore, to see this week's earnings figures from Ten Alps, the production company set up by Bob Geldof back in 2001.
Analysts note significant bid activity in the sector recently, with RDF Media, DCD Media and Tinopolis all attracting interest. With Tinopolis being approached on a valuation of 11.8 times, Ten Alps' eight times looks a little mean, particularly given the track record and growth opportunities. Hold, says the Sunday Telegraph.
Mano River is the old man of the Aim miners, having listed in 1998. After falling under 8p earlier this year, the shares are now close to 12p and showing some signs of gaining momentum. Mano is undoubtedly a risky play, but the potential upside suggests it could be worth a punt, says the Sunday Telegraph.
With European governments offering subsidies to encourage the use of solar power, Solar Integrated Technologies has expanded from the US to the Continent. With a blue-chip client base that includes Tesco, Audi, Toyota and Wal-Mart, and new contracts which guarantee supply, the company is expected to double revenues again this year.
Chief executive Randy MacEwen is in London this week to meet investors and analysts, meaning the shares could receive a considerable boost. As noted above, there are considerable risks with alternative energy companies that may be strong on ideas but weaker on management and financing. Nevertheless, SIT bears further examination. Buy, says the Sunday Telegraph.
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