LONDON (ShareCast) - Interserve's shares at an earnings multiple of just 8 times, compared with the likes of peers Capita and Connaught on 14 times, look very tasty. There is still time for investors to do well from Interserve and, indeed, the rest of the outsourcing sector. Buy, says the Independent. The Times says hold Interserve.

Given Tuesday’s 7 per cent fall in London Stock Exchange shares, there was probably only one way for them to go yesterday and the first-quarter trading update was a little better than expected. But the shares are best avoided for now, says the Times.

It may be a bumpy road ahead but, for the bold investor, Big Yellow shares could be worth a speculative punt, says the Telegraph. The Independent says Big Yellow is a cautious hold.

Begbies Traynor shares trade on a hefty 21 times 2009 earnings, which makes them look fairly valued. But the current economic climate is likely to underpin the price and, while those hoping for a short-term gain may have missed the boat, existing investors should hold on, recommends the Telegraph.

At yesterday’s 160½p – Begbies shares fell 5 per cent after current-year profit forecasts were left on hold – Begbies sits on a forward multiple of 18 times. However, with trends in business failures turning firmly its way, it is worth holding on, says the Times.

The immediate problem is that as a financial stock, 3i is getting battered by nervous investors. True, it is not in the same league as the banks, but the herd mentality of the market dictates that 3i will feel the aftershocks. Brave investors should go for it. The rest should wait. Hold for now, says the Independent.


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