Friday tips round-up: Reed Elsevier, Domino's Pizza, Talvivaara...

18th Feb 2011 06:48

Reed Elsevier's 2010 results hit the market with a dull, wet thud. There was little to encourage anyone in a performance as flat as one of its Dutch parent's polders and an outlook statement that made it clear that further recovery would be gradual.Reed says the bulk of its restructuring programme is now over. The shares sell on about 12 times' this year's earnings; at this level there seems to be little upside, the Times suggests.Domino's Pizza's results proved that the company still has talent, despite its decision to discontinue sponsorship of the Simon Cowell vehicle Britain's Got Talent. The shares are trading on a high rating, at 25.6 times forecast earnings in 2011. However, Domino's should still show good growth. Buy says the Telegraph.At current levels bookie Ladbrokes trades on forward earnings multiples of around 10.7 times, supported by a yield of nearly 5%. So it continues to command a decent valuation although it is far from pricey. Given the news on trading and the recent rally there is temptation to sell. But management's drive gives confidence. Hold says the Independent.Nickel miner Talvivaara is for now a highly speculative venture; its market capitalisation of just short of £1.5bn is about 12 times last year's sales, let alone operating profits of €25.5 m (£21.5m). An uncertainty is the nickel price, which is about two fifths of what it was at the time of the float but set to rise again. The shares are an interesting long-term play for funds you can afford to lose says the Times.Cable & Wireless Worldwide has concentrated on building a strong data network to offset the decline in revenues from voice traffic and the analysts believe it is well placed to capitalise on industry trends. Moreover, the latest update was positive and analysts believe investors will be reassured after the profit warning last year. On a rating of 10 times forward earnings, hold says the Independent.The key question at CWW is whether that dividend can be maintained as revenues grow. The answer is probably, though there are bears out there who think not. The payment will not be covered this year; the market is split on whether it will next but pretty certain it will be in 2012-13. The shares, then, should at least be able to rely on that yield the Times suggests.Western Coal has proved a winner in a relatively short period of time. The shares have added almost 140% in eight months. The company is currently in a bid situation after US coal major Walter Energy offered C$11.50 (£7.28) a share for the group in a C$3.3bn deal. With the shares above the level of the offer, now looks like a good time to bank the cash rather than wait for the deal to be approved. Sell says the Telegraph.Trading is good at Umeco, the supply chain services and advanced composite materials group. An update yesterday showed revenues up by 15 per cent to £153m in the four months to the end of January. The biggest factor in the company's future is the potential sale of its Pattonair supply chain business, which outsources components for aerospace customers, particularly Rolls-Royce. If a deal can be struck the shares will go higher. Buy says the Independent. Satellite operator Avanti Communications is basically a play on data. The world is becoming very data-hungry as smartphones, iPads and other mobile devices become increasingly popular. There is also demand for internet services in remote locations where traditional cables cannot reach - such as ships. In essence, demand for data is expected to exceed capacity for many years. The shares have drifted lower since the HYLAS 1 satellite was launched in December from a high of 735p on profit taking, so now looks like a good time to make a new purchase. Buy says the Telegraph.Results from pawnbroker Albemarle & Bond were not bad - but they weren't that inspiring, either. The company made £1.7m less than it could have in the first half because of a hedge on the gold price, although this will be unwinding soon. Once the gold hedge finishes, results may start to improve, but the shares have been a significant underperformer since their recommendation. Sell says the Telegraph.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.