Friday tips round-up: QinetiQ, LSE, Petropavlovsk

22nd Jan 2010 06:04

Profit warnings come in threes - or so the old stock market adage goes. That's why QinetiQ's second profit warning in a matter of months is a major concern, says the Telegraph. There are better opportunities elsewhere in the market for capital appreciation, so Questor advises taking the loss on the chin and deploying the money elsewhere in the market. The shares also started to trade without the right to a 1.58p dividend yesterday, so you should still receive the interim dividend if you sell the shares now. Sell.Xavier Rolet is on a roll. The French former investment banker has spent his first eight months in charge of the London Stock Exchange injecting the sort of strategic verve that was all too lacking during the eight-year tenure of his predecessor. The longer-term allure is Mr Rolet's plans for diversification. His target of doubling revenues from post-trade services, currently a purely Italian business, appear entirely realistic and should be furthered by this week's hiring of a new divisional head. The LSE's expansion in bond trading also appears sound given projected increases in government debt issuance. At 694½p, or 11 times earnings, buy on weakness, says the Times.Shares in Petropavlovsk, or Peter Hambro Mining to those that can't pronounce the new name, are a proxy for the gold price and as the value of the shiny stuff has soared to record levels in recent months, so Petropavlovsk's stock has benefited. Those holding the shares for the last year have seen their investment rise by more than 160 per cent. Of course, even the safest bet can go pear-shaped and commodity prices are ever volatile. That being said, this company has too much in its favour to be overly concerned by these issues. We say buy, with confidence. Independent.St James's Place's shares offer a paltry 1.6 per cent yield. But the momentum behind sales and St James's Place's still-intact long-term growth targets, suggest further capital appreciation should be the bigger draw. Hold on, says the Times. The Independent meanwhile says that St James's Place has the wind in its sales and with the shares trading on just 0.85 times the value of its in-force policies and 12 times 2011 estimated earnings they are cheap even after recent gains. So buy.Worse is better for Begbies Traynor, the AIM-listed insolvency practitioner. At 92½p, or 11 times earnings, Begbies's tendency to disappoint has lost the shares their premium rating. However, previous economic cycles suggest worse has merely been postponed, rather than averted. Hold, says the Times.Whatever your views on the short-term fate of the housing market, the long-term fundamentals point to a pressing need for more homes. And land is needed for those homes. Inland's core business is buying up brownfield sites, taking them through the planning process and once the relevant approvals are in place, selling them off. At 9.4 times 2011 forecast earnings the shares are not expensive. This is a company with real potential. So buy, according to 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.