Friday tips round-up: Hargreaves, WH Smith, Ladbrokes

20th Apr 2012 07:03

The Tempus column in the Times has taken a look at stockbroker and investment manager Hargreaves Lansdown, saying that thanks to the success of its Vantage funds 'supermarket' platform, "it has been going like the proverbial train."The group reported a £1bn inflow of new funds in the first quarter as customers rushed to buy ISAs before the end of the tax year. Assets under administration were lifted to £26bn. "Hargreaves promises to pay out 65% of post-tax profits in dividends, while there is the lure of special payouts ? a further 30% last year," Tempus notes.While there is still some uncertainty over the Financial Services Authority's Retail Distribution Review, the paper says that shares are worth holding.The Telegraph's Questor column has cast an eye over stationery and books group WH Smith, saying that while revenues are falling, profits have risen and the balance sheet remains strong.The paper notes that the share have underperformed the wider market this year by 14% and are trading at a discount to the sector of about 20%, which it says is "unwarranted". With its cash-generative qualities - seen in the the ongoing buy back and better-than-expected dividend - Questor recommends to buy.Tempus has also looked at High Street betting chain Ladbrokes saying that the true test for Chief Executive Richard Glynn - who "told shareholders that it would take three to five years to restore the once powerful bookie's fortunes" - is yet to come.Digital sportsbook first-quarter net revenues rose 22.4% due to a big market push, but poker, casino and bingo all declined while the marketing cost hurt margins, the paper writes."The resultant 8.9% increase in the group's net revenues in the first three months and the paying down of £56m of debt was encouraging, but the real test will come in the second half of the year. If Mr Glynn is to generate the promised profit growth in 2013 and 2014, the second half will need to show real evidence that the turnaround is delivering." The column recommends to hold the stock.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.BC