Friday tips round-up: Kesa, Booker, BTG...

17th Sep 2010 06:46

Retailer Kesa was noticeably cautious yesterday, accepting that markets would remain "challenging" until next spring. The shares, well down from their peaks in 2009, sell on 11 times this year's earnings and enjoy a yield of about 5.6%. But even if you are tempted to invest in retail, there is better value elsewhere in the sector than Kesa, suggests the Times.Rio Tinto and BHP Billiton have requested a delay in the Australian approval of their iron ore joint venture in the Pilbara region of Western Australia. The shares dipped on the news, but the Telegraph is not that surprised by the delay. Rio shares are trading on a December 2012 earnings multiple of 8.1 times, falling to just 7 in 2011. The yield is 1.7%. Still a buy says the paper.Biocompatibles International is a different beast to the normal company in the drug sector. The company is profitable and management expects that the group will be consistently profitable from here on in. Biocompatibles has developed some clever beads that can be used to treat cancer. The "drug-eluting bead technology" can be implanted in the body to block blood supply to areas of disease and they can be used to deliver drugs to a specific area of the body. The shares are trading on a December 2010 earnings multiple of a staggering 58.6 times but, based on current forecasts, this falls to 32 next year and 19 in 2012. Buy says the Telegraph.Buoyant sales of healthy fayre (up 46%) were a big factor behind the apparently positive trading update issued by the cash and carry group Booker yesterday. But a business like Booker is not going to find things easy in the coming months. Hold for now says the Independent.Improvements from here for Booker will be slow and incremental, though there is some prospect of an uptick when any fruits of the foothold in India come through in three or four years' time. At 15 times earnings, the shares are up with events, although any significant weakness would suggest a buying opportunity, adds the Times.The latest news from BTG is that the group's Varisolve varicose vein treatment is set to go ahead with pivotal phase three trials in the US, andif all goes according to plan the drug could be in line for approval in 2013. The potential market for Varisolve is huge. With steady news flow expected from Varisolve and other programmes this year, there is plenty of headroom. Keep buying says the Independent.Bluebay Asset Management has had a pretty decent year. Pre-tax profits soared by 183% in the 12 months to June, while assets under management rose by 41%. There was also a 131% increase in the dividend. It trades on an undemanding multiple of under 12 times forecast earnings for 2011, falling to 10 times the 2012 forecast. The prospective yield goes from just above 6% for 2011 to nearly 8% for the year after. A strong buy 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.