LONDON (ShareCast) - Yesterday’s rise of more than 5 per cent to 210p suggests Morgan Crucible is being accorded more credit for its resilience. Even so, a foward multiple of nine times seems too low for an engineer delivering solid earnings growth and a 4 per cent dividend yield, raising the possibility that former predators, such as SGL Carbon, may return. Buy on weakness, says the Times.

The Telegraph adds that having massively reduced its exposure to cyclical sectors such as carmaking Morgan Crucible deserves a better rating. Buy.

If you want an asset manager, the analysts would recommend F&C. According to those at Altium, the group will trade at 10.3 times its price-earnings ratio next year, compared with Aberdeen and Henderson, which are both closer to 12.5 times. However, you really do not want an asset manager. The sale by Friends Provident is also an irritation. Sell, says the Independent.

Spring Group is sitting on £26 million of cash and the shares, at 45p, or eight times next year’s earnings, look inexpensive. However, the risk that a weakening permanent market puts 2009 forecasts under threat counsels caution for now. Avoid, says the Times.

The analysts reckon that the sell-off in ENRC shares is overdone. Those at Credit Suisse, which have the group on a target price of 1,600p, reckon the stock will outperform the market. "On our 'worst case' scenario ...assuming ferrochrome averages $1.80 per pound in 2009 compared with our current forecast of $2 per pound, ENRC could still achieve trough earnings of $2.10 per share for 2009, which implies a [price-earnings ratio] of just 9.4 times." Buy, recommends the Independent.

Old Mutual appears anomalously cheap. Even so, the shares are best avoided ahead of evidence the US is getting no worse, writes the Times.

No doubt there will come a time to invest in Liberty again, but it probably won't be until early 2009. By that time, the market will have discovered how many retailers make it through the Christmas period to live another day. Until then, avoid, recommends the Times.

Watchers at Brewin Dolphin downgraded Nichols to hold from buy yesterday, saying that it will only get to 260p in the next 12 months: but now would be a waste of time. Hold, says the Independent.


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