Friday tips round-up: Experian, WPP, Uniq

16th Apr 2010 06:16

There is no need to check on Experian's credit. At yesterday's 616½p, the shares trade at 14 times current-year earnings. This is not stretched given Experian's strong market position, high operating margins and the gearing of profits to an improvement in bank lending. Hold on, says the Times.Sir Martin Sorrell rarely minces words when he talks about the state of the advertising market. Speaking at the WPP's annual results in March, he said the industry may have narrowly avoided "apocalypse now" in what had been a brutal 12 months. Pre-tax profits fell 16 per cent, but in a year of two halves, fortunes improved steadily. At a valuation of around 12.5 times estimated 2010 earnings, on Bank of America Merrill Lynch's calculation, the share price looks undemanding, at least in the short term. Buy, says the Independent.Uniq is a small-cap maker of sandwiches and desserts with a large pension fund attached. Pensions aside, underlying trading is on the mend. Like-for-like sales so far this year are up 4.2 per cent, and the company is feeling the effect of recent contract wins from the Co-op and Marks & Spencer ? by far its biggest customer. Further, the above-forecast £104.6 million raised from the sale of Uniq's overseas operations means that it is sitting on £28.7 million of net cash. But Uniq pays no dividend and, for now, its ability to grow lies largely outside its hands. At 21¼p, down 5p, stand aside, says the Times.Acquisition talks at Advanced Medical Solutions ended nearly a month ago, but shareholders in the AIM-listed wound-care specialist might not have noticed. At 42p yesterday, its shares are back at the peak that they reached before Consort Medical, its unwanted suitor, walked away. At 12 times earnings, buy on weakness, says the Times.The population at large could be forgiven for getting a little bit irked by the general election campaign, even if it is only a week or so old. But for companies like Eaga, the energy efficiency group, the contest is having a real effect on the bottom line. Beyond post-election certainty the Independent doesn't see much oomph behind the stock, although the 2010 dividend yield of 2.9 per cent is solid, if still somewhat unexciting. So hold.Indian stock markets could see a strong inflow from foreign investors in the financial year just started, according to the chief executive of JP Morgan's Indian unit. Kalpana Morparia said that there would be slew of new issuance in capital markets from listed companies, many initial public offerings and an increase in privatisation of state industries. She gave a bullish, but realistic, assessment of prospects for Indian markets. All of this should be good for the managers of JP Morgan Indian Investment Trust (JII). The fund is a good long-term play on the emergence of India as a global economic power and the stance remains buy, says the Telegraph.William Sinclair has the leading non-peat compost product (sales were up 44 per cent in the six months to 31 March), so the move away from peat benefits the group on both sides. With garden-friendly weather helping trading, this is a stock on the move. Not cheap at around 16 times full-year forecast earnings, but the potential makes the Independent confident buyers.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.