Friday tips round-up: Michael Page, UK Mail, Premier Oil...

8th Oct 2010 06:59

Recruiter Michael Page released an impressive trading statement and has more than repaid the faith of those who stuck by management's fierce resistance to an attempted takeover by Swiss rival Adecco two years ago.At 30 times 2010 forecast earnings, yielding 1.7%, the shares are hardly cheap, and sit at a premium to the sector. This is not undeserved: Page's management is strong, and its international reach, already very handy, just keeps on growing. At their current level, however, the shares could see some profit-taking. Hold for now but wade in on any signs of weakness says the Independent.Bakery chain Greggs trades on a December 2010 multiple of 13, falling to 12.1 next. The valuation does not look too overstretched, although concerns about wheat could continue to be a drag. The company is very cash generative, has a good growth strategy and its new product lines are selling well. But the shares are now a hold until sales growth stops slowing says the Telegraph.Victrex, the world's biggest supplier of PEEK polymer, said sales were up by a whopping 64% to 2,535 tonnes when it published a full-year trading update yesterday. There is room for further gains in the price, before it is time to take profits and look elsewhere. So keeping holding suggests the Independent.As its cumbersome rival, the publicly owned Royal Mail, has struggled through union battles and political rows, UK Mail has made impressive progress, manifesting in a 27% share price hike for investors in the past 12 months. On a price to earnings basis, UK Mail does look a little toppy, trading on 15.2 times March 2011 forecast earnings, but the yield should soothe any fears that the stock will tread water for the foreseeable future. Buy says the Independent.Brokers calculate that the private equity industry has been paying nine times earnings for assets similar to the ones owned by Northern Foods, which they worked out was the equivalent of 93p per share. Hold Northern Foods says the Telegraph.Yesterday Nestor Healthcare rejected an unwanted approach from Acromas Holdings at £1 a share. Acromas is the vehicle that now owns the AA and Saga. One can see the attraction of Nestor, a large chunk of whose business is the provision of duty medical staff to stand in for doctors out of hours. The Acromas terms offer about ten times this and next year's profits, but do not seem to take much account of prospects thereafter. The market price seems to suggest that the offer will succeed. Investors should hang on in there, just in case says the Times.Premier Oil's latest move in the North Sea is not a transformational deal, but it is a useful top-up that adds to its proven acreage at a respectable price. The shares have rocketed this year on the back of takeover speculation that has swept the independent oil sector. This could still happen; but the shares, at a little short of £17, are now approaching the NAV. Hold says the Times.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.