LONDON (ShareCast) - Near-term challenges remain for Moneysupermarket.com, not least the recent launch by Google of a rival, albeit so far rudimentary, price comparison website for loans in the UK.
At 12 times current-year forecasts, the shares are cheap for an e-commerce play with a dominant market position. However, until it is clearer how the longer-term effects of the credit crunch unfold, prospective buyers should stay on the sidelines says the Times.
The overseas strategy that has driven DSG International over the past decade has gone badly awry. The turnaround plan unveiled last month by John Browett, DSG’s new chief executive, appears sound but the effects will be slow to feed through and DSG’s high operational gearing – and the associated risk of further profit warnings – mean that it is still too soon to buy says the Times.
Scott Wilson's results provided a further reminder that prospects of Britain’s better-managed consulting engineers are brighter than their share prices might suggest.On 12 times forward earnings, Scott Wilson is given little credit for its brand, balance sheet or the likely consolidation of its sector. The prospect of bolt-on acquisitions to enhance earnings adds to the allure. Buy says the Times.
On around seven times 2009 earnings, offering a 7% yield, packaging group DS Smith shares would appear to be relatively attractive, but as deamdn for boxes declines the company is likely to find the future even harder than the past. Probably best avoided for now says the Telegraph.Avoid.
Cosalt is being re-focused on its health and safety business which operates chiefly in the fast-growing oil and gas and marine sectors. The company has already become a major player in providing services to the North Sea industry and is expanding rapidly elsewhere in Europe, both organically and through acquisition.Investors willing to give the management the benefit of the doubt that they can exit the legacy businesses at not too great a cost and push ahead with its new strategy could do worse. Buy says the Telegraph.
Standard Chartered is one bank that insists capital raising is the last thing on its mind.It also trades at 12.9 times its estimated 2008 price earnings ratio; an 8% discount to the banking sector. But other banking stocks are being avoided for fear of unexpected bad news and Standard Chartered is being left behind as the herd runs away. Sell says the Independent.
UBM is a good company that was wise enough to withdraw from the bidding for Informa when the going got a bit too tough. The shares are cheap and the market is realising that. Buy now to avoid disappointment says the Independent.
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