Friday tips round-up: Shell, Aggreko, Croda...

29th Oct 2010 06:48

Earlier this year, Royal Dutch Shell unveiled its new strategy to return to growth after pedestrian trading for many years. Yesterday's third-quarter numbers show that the company might just manage to pull off its ambitious plans, as quarterly output rose 5%. It is trading on a December 2010 earnings multiple of 10.2 times, falling to just 8.4 next year. Shares in Shell remain a buy for income seekers, with a prospective yield of 5.4% says the Telegraph.Any investor connected up to Aggreko, the emergency power group, over the past two years would be positively glowing. The shares have more than quadrupled since October 2008, despite taking a hit following profit-taking by investors yesterday. While Aggreko supports sporting events such as the Vancouver Winter Olympics and the Fifa World Cup, the real engine rooms are fast-growing emerging markets, such as Russia and India. The shares - which trade on a price-earnings ratio of above 20 - are now a bit too hot to handle. Plug back into Aggreko when it cools down, but hold for now says the Independent.The chemicals company Croda International supplies materials for a range of industries from skin care to pesticides, from car maintenance, to textiles, printing inks and technology for the oil and gas industries. The dividend is strong, raised 50 per cent at the interims to 9.75p, and the stock trades on an estimated price of 13.5 times full-year 2011 earnings, which looks justified. The shares retreated off yesterday's announcement, which certainly looks like a buying opportunity says the Independent.Croda has always said that it will use excess cash to fund acquisitions or, failing that, share buy-backs. There are precious few of the former in prospect, while the chances of the latter has fuelled this year's share price rise. The shares have risen by a third since the company's interim results, at the end of July, and now sell on more than 13 times' next year's expected earnings. That feels about right. Hold, but buy on weakness, says the Times.AstraZeneca, which like most of its pharma peers throws off masses of cash, has managed to be the best-performing stock in the drug sector by shovelling out $4.66bn to shareholders. It is the prospect of more of this, plus a prospective yield of 5%, that has supported the share price, and those in search of income will appreciate this. But the longer-term prospects are more uncertain says the Times.Weary investors in DTZ Holdings, the property services company, will be aware that yesterday's profit warning is a long way from being the first in the company's history. But it is the first on Paul Idzik's watch since the former Barclays high-flyer arrived two years ago to undo a badly timed expansion strategy. The shares entered the year above 80p and have since halved. There seems no reason for them to rise in the short term. Avoid says the Times.Hansen Transmissions, the Belgium-based wind turbine gearbox maker warned last week that it is cutting is revenue forecasts for the year, knocking 14.5% off its share price. Hansen's shares have lost the best part of 70 per cent over the past 12 months. Even the €75m (£65m) sale of its industrial gearbox unit to Japan's Sumitomo Heavy Industries will not help in the short term. Sell 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.