Friday tips round-up: Qinetiq, Amerisur Resources, Shanks...

27th May 2011 06:35

Qinetiq posted better-than-expected full-year figures, with underlying operating profits climbing by 21% to £145.4m, against analyst hopes of around £140m. But that wasn't all. Qinetiq said it had slashed its debt burden to a manageable £261m from £457m. And it also cheered income investors by announcing that it would resume paying dividends. Qinetiq stands out, as it offers the prospect of upside gains if the restructuring (into three divisions: US services, UK services and global products) continues to progress well. That, and the fact that the shares trade on under seven times forward earnings, make this a confirmed buy, says the Independent.Given ecent exploration disappointments in the small-cap oil sector, Amerisur Resources offers an alternative, relatively low risk, production focused investment case through 2011. The company plans to grow production from 550bbl/d to 5,000bbl/d by the end of the year from an existing oil field onshore southern Colombia. In addition, recently acquired 3D seismic on the key Platanillo Block has identified almost 100mmbbls of prospective resources, highlighting the potential for long-term production growth. The Scotsman says buy.It may be involved in waste management, but Shanks was nonetheless smelling sweet yesterday after the release of its full-year results. As well as beating expectations, the group also upped its dividend by 8% to 3.25p a share. This was impressive given the headwinds the company has faced this year. The main issues have been seen in the Netherlands, which makes up for almost 70% of its profits, where the construction sector has suffered a significant downturn, according to the Independent, which recommends a buy.The most interesting thing about Sportingbet's £118.5m cash-raising yesterday to fund the purchase, for the same price, of Australian internet bookie Centrebet International, is the fact that half of it is funded by new debt. With Centrebet, more than 30% of the business will come from regulated markets, against 22% now. It also makes the combined group one of the two biggest players in the growing Australian market. Should Spain and Greece deregulate, and the pressure is on as part of their debt reduction programmes, that proportion would fall to fifty-fifty. The company could itself also fall to a larger predator. On six times this year's earnings, the shares look cheap, though they have disappointed in the past, says the Times.New Zealand-based Endace is called in by clients to monitor networks and help to protect against cyber attacks similar to those that recently devastated Sony's PlayStation Network. And judging by its full-year results released this week, business is brisk. Revenues rose by a quarter to $38.4m for the 12 months to the end of March. Pre-tax profits were up from $400,000 the previous year to $2.9m. Ordinarily, the fact that a stock trades on multiples of 2.4 times enterprise value to sales would be enough to make us buy. Endace has more to offer, and alongside the business prospects, there is the chance of bid activity, according to analysts, according to the Independent, which says buy.The physical integration of Lamprell's acquisition of the Oslo-quoted Maritime Industrial Services in the Gulf should not take too long, mainly involving the demolition of a chain fence, because the oil services company is buying a Sharjah facility that is right next to its existing yard in the emirate. The physical integration of Lamprell's acquisition of the Oslo-quoted Maritime Industrial Services in the Gulf should not take too long, mainly involving the demolition of a chain fence, because the oil services company is buying a Sharjah facility that is right next to its existing yard in the emirate. Lamprell's shares sell on a little more than 12 times earnings, which sounds about right. Hold, recommends the Times.---BCPlease 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.