NEW! Investment Companies Centre

Carphone Warehouse Group (CPW)

Sector:

General Retailers

Index:

FTSE 250

Market Cap

£1,032.94m

Change Today

Price Up4.75p ()

Share Price

113.00p

Friday tips round-up: Prudential, Shire, Unilever

Date: Friday 01 Aug 2008

LONDON (ShareCast) - Prudential offers good value and continues going great guns, even in the choppy US market. However, unless the entire market improves dramatically in the next few months, it is difficult to predict any upward pressure on the share price. A good, well-run company in the right markets but unfortunately one that will not make money for investors in the short term. Sell, says the Independent.

Uncertainty surrounding the take-up of Vyvanse – the successor to Shire Pharmaceutical’s best-selling Adderall XR treatment – means the shares are likely to remain volatile. However, 831½p, or 14 times this year’s earnings, provides an attractive point of entry for first-time investors. A speculative buy, according to the Times.

If investors want exposure to the sector, Unilever would not be a bad bet. Trading at 14.3 times 2008 earnings, it is cheaper than rivals like Nestle and Danone, but on a fundamental basis it is likely that investors will see losses on the entire sector. Sell, says the Independent.

Anglo American is not known for making bold economic forecasts. So the fact that Cynthia Carroll, chief executive of the £39 billion miner, took it upon herself to predict Chinese GDP growth of 10 per cent both this year and next – higher than consensus estimates – might be taken as a measure of frustration with her company’s share price.

For those convinced by China’s resilience, £29.21, or less than eight times earnings, a discount to its peers, is a clear buying opportunity. However, the danger that copper prices could track recent weakness in platinum should keep more diffident investors on the sidelines for now, says the Times.

The Telegraph adds that a recent fall in the stock price has left Anglo trading on just 8.8 times Credit Suisse's forecasts for 2008 earnings, which appears far too low. With Carroll upbeat about production gains and cost control in the second half of the year, hold on.

Ralph Topping, the newish chief executive of William Hill, is not usually one to moan. But yesterday, after announcing a 16 per cent decline in first-half profits, the straight-talking Scot was not in the mood to hold back on the way he believes growth is being stifled by the Government. Given that the company contributed £125.4 million to the Treasury’s coffers in the first half, he is entitled to his say. At 314½p, or less than eight times earnings, and yielding 7 per cent, the shares are no more than a hold, according to the Times.

Meanwhile, the Telegraph says that the current price, Hill is looking a value bet. On forecasts of around £190m profits this year, the prospective multiple is just over eight times, while a maintained dividend would produce an 8pc yield. Worth a small wager.

Those at UBS say that "we expect Reed Elsevier to recover its recent underperformance versus the sector, and see it as cheap on 11 to 12 times 2009 EPS for a stock delivering a defensive 12 to 14 per cent per annum EPS growth." Buy, says the Independent.

Times are undoubtedly tougher at the Carphone Warehouse. Broadband growth is slowing as fewer people move house. But on 8.8 times forecast earnings, yielding 2.9pc, the shares look good value for the bold, long-term investor. Buy, says the Telegraph.

Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

CPW Market Data

Currency UK Pounds
Share Price 113.00p Price Up
Change Today +4.75p
52 Week High 366.00
52 Week Low 107.75
Volume 2,711,136
Shares Issued 914.11m
Market Cap £1,032.94m
Beta 0.76
RiskGrade 365

Performance Indicators

Compare performance with the sector and the market.
Find out more
Key: vs Market vs Sector
Value
5.16% above the market average5.16% above the market average5.16% above the market average5.16% above the market average5.16% above the market average
12.68% below the sector average12.68% below the sector average12.68% below the sector average12.68% below the sector average12.68% below the sector average
Price Trend
38.28% below the market average38.28% below the market average38.28% below the market average38.28% below the market average38.28% below the market average
13.51% below the sector average13.51% below the sector average13.51% below the sector average13.51% below the sector average13.51% below the sector average
Income
9.66% below the market average9.66% below the market average9.66% below the market average9.66% below the market average9.66% below the market average
34.62% below the sector average34.62% below the sector average34.62% below the sector average34.62% below the sector average34.62% below the sector average
Growth
69.26% above the market average69.26% above the market average69.26% above the market average69.26% above the market average69.26% above the market average
85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average85.71% above the sector average
Price Chg 6m
25.86% below the market average25.86% below the market average25.86% below the market average25.86% below the market average25.86% below the market average
5.41% below the sector average5.41% below the sector average5.41% below the sector average5.41% below the sector average5.41% below the sector average
P/E
21.22% above the market average21.22% above the market average21.22% above the market average21.22% above the market average21.22% above the market average
4.00% above the sector average4.00% above the sector average4.00% above the sector average4.00% above the sector average4.00% above the sector average
PEG
55.63% above the market average55.63% above the market average55.63% above the market average55.63% above the market average55.63% above the market average
51.72% above the sector average51.72% above the sector average51.72% above the sector average51.72% above the sector average51.72% above the sector average
Dividend Yield
35.31% below the market average35.31% below the market average35.31% below the market average35.31% below the market average35.31% below the market average
46.94% below the sector average46.94% below the sector average46.94% below the sector average46.94% below the sector average46.94% below the sector average
EPS Growth
67.30% above the market average67.30% above the market average67.30% above the market average67.30% above the market average67.30% above the market average
78.72% above the sector average78.72% above the sector average78.72% above the sector average78.72% above the sector average78.72% above the sector average
Operating Margin
18.47% below the market average18.47% below the market average18.47% below the market average18.47% below the market average18.47% below the market average
2.7% below the sector average2.7% below the sector average2.7% below the sector average2.7% below the sector average2.7% below the sector average

What The Brokers Say

Strong Buy 5
Buy 3
Neutral 5
Sell 1
Strong Sell 0
Total 14
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

CPW Dividends

  Latest Previous
  Interim Final
Ex-Div n/a 09-Jul-08
Paid 17-Dec-08 08-Aug-08
Amount 1.35p 3.00p

Trades for --2008

Time Volume / Share Price
0 @ 0.000p

CPW Key Personnel

CEO Charles W Dunstone
CFO Roger W Taylor
Chair John Gildersleeve
COO David Goldie

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).