Date: Thursday 26 Jun 2008
LONDON (ShareCast) - It is almost certainly true that Old Mutual, barring any unwelcome surprises, is close to reaching its floor, and any market recovery could lead to a bounce for investors. Sell, says the Independent.
When it comes to Barclays, in these febrile markets there is only one metric worth considering: the dividend yield. At nearly 11pc and in cash (a rarity for the sector at the moment), the bank looks a roaring buy. Most recently, Questor sold Barclays at 662p. Now is a good time to get back in, says the Telegraph.
Assura remains an unprofitable early-stage company with a high level of debt, albeit with substantial property backing. Its dividend, which offers a near 9 per cent yield at yesterday’s 100p, could come under threat if the fundraising struggles. Avoid, recommends the Times.
At 80½p, or eight times current-year forecasts, Renold’s shares appear cheap given the scope to win sales in emerging markets. However, its size and sector mean sentiment is likely to remain against it. Pass, says the Times.
Atkins has £164 million of cash, a falling pension fund deficit and a share buyback programme that is less than half complete. At 13 times forward earnings, Atkins sits at a premium to its peers, but a deserved one. Hold, says the Times. The Independent also says hold, while the FT says it is suitable for the more cautious share buyers.
It would be tempting fate to say Red24 is worth backing now, but the company is limping towards profitability, and there are signs that it is emerging as a serious investment option. Hold, says the Independent.
Stagecoach runs a tight ship: the dividend was higher than foreseen and the net debt lower. But the company's virtues are already in the share price. It trades at a premium of more than 20 per cent to the sector, with a forward price-to-earnings ratio of about 14, says the FT.
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