Friday tips round-up: BAE Systems, Domino's Pizza, ICAP

2nd Oct 2009 06:50

The Serious Fraud Office's move to press charges against BAE Systems over alleged bribery is certainly discomforting for the company. It is, however, questionable what lasting impact it will have on the shares. The investment case for BAE remains sound. The shares are yielding 4.5% and trading on a price of eight times next year's earnings. Buy says the Telegraph.There's simply no stopping Domino's Pizza. Yesterday analysts were busy upgrading their forecasts for the third time this year, after the company beat expectations with its third-quarter results. Domino's is growing at break-neck speed from its existing shop base, as well as expanding across the country, apparently oblivious to the dire economic conditions surrounding it. The shares still have a way to go. Buy says the Telegraph. Near term, inter dealer-broker Icap's profit growth is likely to lag its wider sector. But at 417¼p, or 13 times earnings, its scale, track record and unfulfilled ambition make it hard to write off. Hold says the Times.After last week's agreement by VT to sell its 45% stake in its shipbuilding joint venture, the company will soon be sitting on a sizeable war chest ? between £300m and £400m of firepower if debt facilities are included. That cash pile should be spent in a way that should only accelerate its already vigorous pace of underlying profit growth ? currently about 10% a year. Buy say the Times.Yesterday's trading update showed that, over the past six months, Robert Wiseman sold more than 10% more milk than it did a year ago. Wiseman has emerged as a clear winner from a consolidated liquid milk market. At 435p, or 12 times earnings, and yielding 3.7%, there is every reason to hold says the Times.Alternative Networks is the group SMEs call in to sort out all their telecoms needs. The company was set up in 1994 with a loan of £9,000. It has grown to employ 400 people, and has been called in by over 4,500 businesses in the UK, including the outdoor advertising group JC Decaux, the broadcaster Channel 4, and Miele, the electrical appliances company. With a 4.8% yield and trading on eight times 2010 earnings, hold for now, the Independent suggests. 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.