Friday tips round-up: JJB Sports, Shanks, Investec

22nd May 2009 06:43

JJB Sports executive chairman, Sir David Jones, reckons the only thing now standing in the way of a return to health for JJB is if he and his team "cock it up". Sir David, who says it will take at least a year before JJB gets the right stock on its shelves, does not rule out a rights issue to further shore up the company's books. For those looking for an adventure, the stock is still very cheap. It could still go very wrong, however. Speculative buy says the Independent.The waste management group Shanks surprised the market yesterday, announcing a two-for-three £71.4m rights issue, which it says will be used to cut its debt pile and strengthen its balance sheet. The shares, which trade at six times earnings, still have a way to go despite the impressive rises over the last quarter. Buy says the Independent.The longer-term attraction is increasingly punitive measures on both sides of the Channel to divert waste away from landfill towards recycling and waste-to-energy schemes - niches in which Shanks, whether through Orgaworld, its composting business, or a UK joint venture with Wheelabrator, of the US, has a head start. Hold on adds the Times.Defence company Qinetiq trades on a March 2010 earnings multiple of 9.7 times and yields 3.4%. Despite the shares' recent underperformance, taking a long-term view, the stance on the shares remains buy says the Telegraph.At £11.48, or 11 times this year's earnings, Scottish & Southern Energy shares trade broadly in line with their peers. However, its low-risk approach and dividend obsession suggest they warrant more. Hold says the Times.Investec's trick has been to avoid big bets in structured credit and fall back on a usefully diversified income stream - private banking, asset management and investment banking in its native South Africa, the UK and Australia - nearly three quarters of which might be considered recurring. The hope must be that recession in South Africa - still three quarters of profits - is shorter and shallower than elsewhere. On nine times next year's earnings, buy says the Times. Travel group Western & Oriental's market capitalisation is now lower than its net cash position. The Independent applauds the lengths the company has gone to but is still nervous about companies this small, in what is still a tricky sector. Keep an eye on the shares. Hold for now it says.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.