Friday tips round-up: RSA, Clinton, African Barrick

13th May 2011 06:34

Britain's biggest commercial insurer RSA has tended to show a fleetness of foot when managing risk, stepping back from business lines and markets when the premium rates, and thus profits, look unattractive. The shares, which yield 6.6 per cent, trade on a relatively low P/E multiple of 9.9 times, compared with a sector average in the early to mid-teens. At the very least, a hold, says the Times.There were no happy returns for Clinton Cards yesterday after the greetings card retailer said its decline in sales had accelerated. While shares in Clinton have tumbled since hitting 40p last June, they still trade on a 2012 earnings multiple of nearly 14, a premium to the sector. In addition, we still think Clinton has to shed substantial numbers of stores before we put a buy recommendation on its investment card. Hold, says the Independent.African Barrick Gold (ABG) has four mines in Tanzania and was split from the world's largest gold mining company, Barrick Gold, in early 2010 although the major retains a 74% holding in it. The rebound of production at Buzwagi, in conjunction with the strength of the gold price and solid operating cashflow of $87m (£53m) during the first three months of 2011, make ABG our preferred UK listed gold miner and we would expect the shares to re-rate upwards over the next 12 months, the Scotsman says.Jerry Buhlmann, chief executive of Aegis, says that in first-quarter revenue terms his company, showing growth of 9.1% and 10.1% from the core Aegis Media, has outperformed its peers in the advertising sector, such as WPP, Havas and Publicis. The shares have had a couple of downward lurches this spring along with the sector as markets worried about the impact of Japan and the Middle East, but at 140p still sell on more than 12 times this year's earnings. Hold, says the Times.The concerns with industrial materials group Cookson are that its latest statement was insufficiently bullish to justify an earnings upgrade, and that rising commodities prices could have an impact on margins in the first half. Yesterday's fall puts the shares on about ten times this year's earnings. That looks like a buying opportunity, says the Times.Yesterday's near 7% jump in 3i shares was largely a sigh of relief after the private equity group failed to confirm the market's worst fears. Back in early April, 3i's shares fell heavily when the company warned that strong performance at Northern European companies would be "materially offset" by a small number of companies, mainly in the UK. The shares still trade at a hefty discount of about 26% to broker Oriel Securities' NAV for September this year. We think this gap will be closed, either through a steady rerating or, perhaps, a takeover. Buy, says the Independent.Tullett Prebon tends to benefit in times of great volatility as the inter-dealer broker's clients will trade more frequently. After a disappointing trading update yesterday, it could do with some more of that this year. While the numbers may have disappointed, the price of 9.8 times estimated full year earnings calculated by Charles Stanley analysts looks cheap. It trades at a discount to its peers and saw further weakness yesterday. Buy, says the Independent.---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.