LONDON (ShareCast) - Support services group Cape has certain advantages. The group supports the energy industry, another buoyant sector in recent months, and an imminent move to the main list will also attract new investors.

Even though the shares do look a bit pricey, investors are getting an increasingly more attractive stock for their money. Buy says the Independent.

"A safe port in a storm," is how executive chairman, David Hickey, describes the financial advisory and wealth management group, Lighthouse. However, because of its sector, Lighthouse is certainly not a punt for investors that want a chunky return in the near future. A turn in the economic cycle is likely to be some way off and it is difficult to see where growth comes from for Lighthouse shares in the short term. Hold says the Independent.

Property investment group Speymill is a generally solid company and with more hotels expected in the next few years, its troubled contracts business has the potential to recover. There is unfortunately more bad news to announce however, and as such investors should be very careful. Cautious hold says the Independent.

There was little news to speak of in plumbing supplies group Wolseley's full-year results. Revenue was static, profits were down, jobs were in the process of being cut and some 270 branches had been shut. Hugely reliant on the house market on both sides of the Atlantic, Wolseley is very much in the eye of the storm – utterly becalmed. There have been rumours of a possible bid approach but it would be foolhardy to bet on possibility with hard cash. Steer clear says the Telegraph.

With huge uncertainty surrounding the US Government’s bailout of its housing market, the UK still in the early stages of decline and hefty provisions a possibility, there will be better times to buy adds the Times.

Wolseley shares have rallied nearly 70% in recent weeks, including yesterday's near-14% increase. That puts them on 12 times future earnings, perhaps the only double-digit price/earnings ratio for anyone involved in the US construction morass. For a company condemned to maximising cash generation at the cost of future profits, that seems high enough says the FT.

Restaurant group Clapham House asserted yesterday that trading remains "satisfactory" despite the poor backdrop. Whether Clapham chooses to offload the Tootsies chain and focus on star player Gourmet Burger Kitchen is in the air, but with Nando's owner Capricorn sitting on Clapham's lawn with a near 25% stake, buy says the Telegraph.

On 16 times current-year earnings Clapham House's share rating appears to be up with events, given the risk to profits from a further lurch downwards in consumer confidence. Hold says the Times.

Aircraft parts distributor Aero Inventory's results came in slightly ahead of expectations. Cazenove, its broker, increased its forecast for 2008-09 by $5m to $90m. That leaves the prospective multiple at below 7. The undemanding rating points to a lack of understanding of the business. Financing the necessary stock levels is costly, but if the group loses a contract it will always be able to sell its aircraft parts. And whatever troubles lie ahead for the airline industry, Aero estimates it has only 3% of its potential market says the FT.

Assuming that Aero's increasing cash generation will obviate the need for a rights issue, the shares – at 440p, or less than six times earnings, and half the level of June’s indicative (albeit withdrawn) offer from Bridgepoint – are worth hanging on to, adds the Times.

Yellow Pages group Yell is in talks with its banks over relaxing its covenants. If all goes to plan, Yell will look very cheap, trading as it is on 2.4 times earnings. The risk of an equity issuance will remain, of course, but given that the business throws off £300m of cash a year, you may kick yourself if you sell now. Hang on grimly says the Telegraph.


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