Friday tips round-up: Reed Elsevier, Glencore, BAE

29th Jul 2011 06:34

Publishing and exhibitions business, Reed Elsevier's full-year results in February were pretty flat, indicating that further recovery would be gradual. First-half figures confirm this. The shares sell on an unexciting 12 times this year's earnings ? although as one analyst pointed out, their defensive qualities have some attractions in these markets. Hold, the Times says.Glencore's float earlier this year was variously billed as record-breaking and blockbuster - and it was. But the stock remains below the 530p issue price. Inflation in emerging markets is very - some say uncomfortably - high. Central bankers have already raised rates, and could do so again, hitting activity and precipitating an economic slowdown. That would reduce demand for commodities. The world's appetite for metals could also suffer if the Eurozone (or, even worse, the US) serves up a sovereign debt disaster. But on balance, we'd hold for now. Just don't buy any more, says the Independent.With military budgets being slashed across the world, the defence groups have - rather unsurprisingly - not been having a great time of it lately. For BAE Systems, 2011 has been particularly tough, and its share price has dropped nearly 15% since the start of the year. The issue of government spending will certainly continue to weigh on the stock for the short-term. However, the battering its share price has taken - combined with the confidence shown by management with the share buyback - suggests upside ahead, if you are prepared to wait, the Independent says.Invensys's controls side supplies white goods manufacturers such as Whirlpool and Electrolux and has been hit by the consumer downturn. Those customers have indicated they expect a sharp upturn from the flat conditions in the first half of the year. The operations management side supplies huge infrastructure projects such as Chinese nuclear plants, oil and gas in Brazil and the equivalent in the Middle East. These are at the beginning of the production cycle, and margins for suppliers such as Invensys then tend to be lower than later on when the real work arrives. Invensys shares on a little more than 12 times this year's earnings. High enough for now, unless you are convinced that bid will appear, according to the Times.Sweeteners group Tate & Lyle's shares have gained £2 since last August and sell on about 12 times rival stocks. Fair enough for now, says the Times.St James's Place Capital caters for those with more than £30,000 to invest, with the help of a 1,600 strong army of financial advisers. It's proved hugely successful. SJP is majority-owned by Lloyds Banking Group, which said it had no plans to sell up after a recent review. Good decision. Keep buying, says 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.---RG