Friday tips round-up: AstraZeneca, Mitchells & Butlers, Aquarius Platinum...

28th Jan 2011 06:58

AstraZeneca and the rest of the large pharmas share the same basic problem, that of old drugs coming off patent faster than they can be replaced. The response has generally been to shovel piles of cash towards investors to keep them happy while trying to work out what to do next. AstraZeneca upped its share buyback programme from $2.1bn last year to $4bn this year, while raising the dividend for 2010 by an inflation-busting 11%. The shares now yield about 5.5% even ahead of the effects of the share buy-back, a good enough reason to hold them says the Times.Investors in Mitchells & Butlers, the pub-and-restaurant group, raised a glass to its results yesterday, which were ahead of City expectations, largely thanks to strong food sales. With the shares close to a 12-month high and trading on 12.3 times forecast full-year earnings, they are probably fairly valued. But the company is going in the right direction, so hold says the Independent.According to yesterday's second-quarter production results, Aquarius Platinum is going great guns. Production of 128,000 PGM ounces in the quarter to the end of December was a 3% rise compared with the previous quarter and a 14% increase on the previous year. But the car industry, a big user of platinum, is facing tricky times. Given the market's importance, it's too early to take a punt on platinum. Avoid says the Independent.A positive update from the London Stock Exchange, which has seen its market share of trading in London equities stabilising and a steady improvement in the IPO market. Total income is up 6% on the third quarter of last year, and 9% on a constant currency basis. On 12 times forecast full-year earnings, the LSE sits at a discount to the European "exchange infrastructure" sector even if the shares have had a good run recently. Hold says the Independent.Analysts are now ratcheting back their pre-tax profits forecasts for this year for structural steel supplier Severfield-Rowen by as much as 45% to £10m after yesterday's gloomy update. The shares now sell on about 29 times this year's earnings and 16 times next year's, which hardly looks tempting says the Times.Strip out France and yesterday's trading statement from soft drinks group Britvic has like-for-like sales across the group down by 0.2%, with pub sales inevitably hit by the weather, and sales in the difficult Irish market off by almost 10%. On 13 times earnings for the current year, sell suggests the Times.Centamin Egypt operates Egypt's first modern gold mine at Sukari - and social unrest in North Africa has spread to the country from Tunisia. This has prompted investors in the company to run for the door, concerned that it has just one asset, making it particularly vulnerable. The falls are overdone and the shares are now once again a buy, although the investment should be regarded as speculative because the situation in Egypt could get worse before it gets better 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.