Friday tips round-up: Premier Farnell, Victoria, Sodastream

17th Jun 2011 06:32

Premier Farnell's share price had risen by more than 50% since the start of 2010 before yesterday's 9% fall, so a correction was probably inevitable as soon as the electronics distributor undershot the market's forecasts. Though Asian markets such as China, sales up 14%, and India, up 50%, continue to grow strongly, the Singaporean and Malaysian businesses disappointed, in part because management were distracted by the disaster in Japan. The shares, at 252p, are on less than 13 times this year's earnings, while the strong balance sheet allows the prospect of higher dividends and a yield that could approach 5 per cent. But when the market flips like this, short-term progress could be slow, says the Times.The Independent says Premier Farnell shares trade at about 13.5 times forecast full-year earnings, falling to about 12.5 times 2012 levels. That's in line with historic multiples, though cheaper than rival Electrocomponents, with a serviceable yield of 4 per cent. Given our concerns and yesterday's statement, however, they look fairly valued, says the paper, which has an 'avoid' stance on the shares.Victoria supplied the red carpet which ran through Westminster Abbey on our future king's big day in April. On Wednesday, the floor coverings manufacturer revealed its preliminary results, and - aside from gaining the regal seal of approval - it conceded that in the UK it was seeing the "toughest environment... for years". Given the economic pressures on the British consumer, plus cost pressures, there are reasons to be cautious, but there is enough here to suggest that Victoria can hold its own, despite the rocky macro backdrop. Buy, says the Independent.SodaStream has put the fizz in fizzy-pop and the T in G&T for more than 100 years. For many, the carbonated drinks maker is a fond childhood memory - but outside the UK it is becoming big business. SodaStream's green credentials are enviable: it uses far less energy and creates a fraction of the waste that goes into making and transporting your average canned drink. A classic small-cap stock, with great earnings potential and sizeable global growth opportunity, SodaStream is a juicy prospect for any investor. The Scotsman says buy.A couple of days ago some official statistics showed that the market for anaesthetic products is starting to rise again, albeit by a couple of percentage points only. The market remains tough, and it is this into which Consort Medical is about to launch its most important product for years, a new video laryngoscope. The shares have been strong performers since last summer and sell on just short of 12 times earnings; a good long-term play, but up with events for now, says the Times.Geoff Drabble, chief executive of Ashtead Group, continues to insist that, even knowing what he knows now, he would have pushed ahead with the 2006 purchase for $1bn of Nation's Rent of the US, which made it one of the biggest players in the US industrial hire market. But the US construction market is still refusing to show any signs of recovery. The shares are on about 23 times this year's earnings; not much to go for just now unless you take a very optimistic view of US construction, according to the Times.RGPlease 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.