Although on four times 2008 earnings Punch Taverns looks cheap but KBC Peel Hunt noted that on an enterprise value to EBITDA ratio of 8.6 times, the stock is far from a bargain historically. With more downgrades likely, Questor is inclined to agree. Drink up and sell, says the Telegraph.

The more QinetiQ’s shares rise, the greater the probability that the cash-strapped Government will seek to offload its residual 19 per cent stake. The removal of that overhang should cause the shares to advance further. At 15 times current-year earnings, QineticQ should be bought on weakness, says the Times.

Oil and gas explorers always carry with them a degree of risk, but Heritage Oil now bears less than most. With more positive newsflow likely to underpin the shares in the months to come, the shares are well worth buying, says the Telegraph.

Blue Oar is a tiny player in the financial services industry, and, if investors see that the likes of Lehman Brothers are about to announce yet more writedowns, they are hardly going to turn to Blue Oar as a safe haven. Sell, recommends the Independent.

DS Smith at 129½p, down 6½p, a secure prospective dividend yield of 7 per cent is the greatest attraction, However, that income, and a multiple of eight times earnings, is not sufficiently persuasive for a company whose profits are heading backwards. Avoid, says the Times.

Given the predictability of revenues – 80 per cent of sales in the 12 months to April 30 are already assured – and a high proportion of long-term cost-plus contracts, Spice offers considerable defensiveness. But it is the promise of continued strong earnings growth – 14 per cent this year and 12 per cent next – that makes this at 534½p, or 14 times 2009 earnings, a share to own. Buy, says the Times.

In the longer term, investors might be grateful for buying DS Smith, but, if they do so now, there is likely to be some pain first. Sell, says the Independent.

Watchers at the house broker, Arden, yesterday said investors should buy A&J Mucklow, arguing that "the shares are currently standing at a 35 per cent discount to the June 2008 net asset value and offer a yield of 7.2 per cent. The Independent believes that this more than discounts the risks of further moves in the yield basis and, with the discount in line with its much more highly geared peer group, the shares are also very attractively valued against other Reits." That may be so, but the entire sector is still toxic. Sell, says the paper.

The Telegraph says you'd be foolish to sell Cable & Wireless now given that the company is working on potential realisation options that could uncover hidden value.

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