Friday tips round-up: 888, Avis, IMI

28th Aug 2009 05:58

At 15 times 2009 forecast earnings, 888 is hardly cheap, given the uncertainty and problems in the consumer-facing operations. There is also a question over the dividend going forward. At some point 888 could certainly become an M&A target, which offers some potential upside, but at the moment there is just too much uncertainty in the stock to be taking a punt. There are better opportunities elsewhere. Sell, says the Independent.Pascal Bazin, Avis's French chief executive, spoke of expansion in China, gaining share in Britain ? where Avis remains "too small" ? and a quickly growing car-sharing scheme in Paris. All of which bodes well for the future but less so for those seeking encouragement in the months ahead. The shares have risen more than tenfold since the dark days of mid-winter when they dipped below 3p. But the lack of visibility on business travel after the glow of summer fades means that you should think long and hard before picking up the keys. Avoid, says the Times.IMI's interim results came as a bolt from the blue for analysts. The engineering group defied expectations, smashing through consensus forecasts with 18.5p in adjusted earnings per share, compared to hopes of around 13.3p. Add to the mix the healthy 5.2 per cent prospective dividend yield and there is but one message: buy, says the Independent.Shares in Amec, the oil services group, eased yesterday as the group issued its interims but it's hard to blame the numbers for the fall. A lower oil price has hit the entire industry so pre-tax profits at £88.4m, down just 4 per cent, was a very creditable result. Amec is a quality operation that the Independent thinks is a good holding for any portfolio. So hold for now but be ready to wade in again if the shares fall in the next few weeks.Given Fujitsu's plans to shed 10 per cent of its British workforce due to a poor order book, it was perhaps surprising that Computacenter's first-half results showed such a strong performance in IT services. Computacenter shares have surged from 80p in January this year to 283p, so profit-taking was inevitable yesterday. At 11.6 times next year's earnings, the stock still trades on a discount to the sector. Buy, says the Times.UK Coal is no doubt a slow-burner and finds itself in the unenviable position of attracting only those investors who like taking risks and have time to hang around. Avoid for now, says the Times.The Telegraph thinks there is in no doubt that the market is undervaluing Peter Hambro shares significantly. In effect, the Aricom business is thrown into the valuation for free. The shares have added 20pc since they were recommended as a buy at 626.2p on July 21 - an impressive gain in little over a month. But the stance on the shares remains buy.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.