Friday tips round-up: BG, AstraZeneca, William Hill

30th Apr 2010 06:39

BG's impressive portfolio - particularly in the giant sub-salt fields off Brazil and in Australia's coal-seam gas sector - should give investors pause for thought, regardless of the short-term dynamic. Australian LNG trains are well-placed for the booming Asian market. And Brazil's Santos Basin has seen unprecedented exploration success in recent years. On at 14.7 times 2010 forecast earnings keep buying says the Independent.BG shares are trading on a December 2010 earnings multiple of 14.9 times, falling to 12.9 in 2011. This is a significant premium to Shell and BP, but it represents the future potential of the group's large gas reserves. The dividend yield is nothing to write home about, at 1.2%, but shares remain a buy for a recovery in gas prices and a jump in production in the next few years adds the Telegraph.In June or July, a Delaware court will rule whether AstraZeneca can block low-cost competition to Crestor, the cholesterol-lowering remedy that is set to become its biggest-selling medicine this year. Second, in July or August, the FDA will deliver its judgment on Brilinta, AstraZeneca's blood-thinning pill for preventing heart attacks and strokes. Trials have shown Brilinta to be more effective than Plavix ? the world's second-biggest-selling drug. Between them, Crestor and Brilinta will produce big share price swings. But at £28.97, up 59½p, the shares trade at seven times 2010 earnings, a steep discount to European peers. Hold on if you own them; stand aside for a better point of entry if you don't says the Times.Given the hit last year from consumer recession, first-quarter numbers suggest that William Hill is making small steps forward, while keeping a tight rein on costs. Over-the-counter betting in its shops is likely to remain under pressure, but the marketing bonanza of the World Cup this summer may provide a further boost to its online sportsbook. At 203p, or 11 times 2010 earnings, and yielding 4% this is a "buy" for the brave suggests the Times.Aircraft support services group BBA Aviation's debt is down to £390 million and, given annual cash generation of more than £100 million, should head lower still. The difficulty is that at 207p, up 25 per cent in three months, or 13 times 2010 earnings, much of the anticipated cyclical recovery in business aviation has already been priced in. Look to buy lower down says the Times.Shares in HMV Group are cheap trading on a 2011 forecast multiple of just 6 - a 50% discount to the retail sector. Both HMV and Waterstone's face strategic challenges, but the group has already taken major strides to broaden HMV's revenue stream including purchasing Mama, the live music owner, moving into fashion and opening cinemas. Rivals Woollies and Zavvi are also dead and buried. Risky, but at the current knockdown price HMV shares have life in them. Buy says the Independent.Publisher Mecom owns 300 printed titles and 200 websites across the Netherlands, Denmark, Norway and Poland. But the wider economic case for the publisher is still unclear, especially with the lack of confidence in the advertising market recovery over the longer term, and with the company unlikely to pay a dividend until the end of full-year 2012. Sell says the Independent.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.