Friday tips round-up: Ted Baker, Ladbrokes, Carphone Warehouse

9th Oct 2009 06:36

Ted Baker yesterday provided further evidence that its upmarket, and sometimes quirky, clothing is still in fashion with British shoppers.The group's shares, which trade on a forward 2010 price earnings ratio of 14.3 times, are also at a premium to standard high street retailers, although this partly reflects its growth and international potential. Hold says the Independent.The upshot of Ladbrokes cash call is that it brings debt below £620m and the borrowings ratio to a roomier 2.5 times, but it also highlights something else about the bookie: it's struggling. Operating profits, ex-high rollers, fell 58pc last quarter to £22.4m, forcing Ladbrokes into more cost cuts, including a final dividend worth £50m last year. There's also a pay freeze until January 2011, capex cuts and some redundancies to come. But after such a poor run of form, Ladbrokes' luck must improve. It's a close call, but take up your rights says the Telegraph.Carphone Warehouse's shares are no bargain on conventional measures ? trading at 15 times current year earnings and yielding just 2.1 per cent. But earnings are set to grow 30% over the next two years, while anticipation of a demerger should put a short-term floor under the shares. At 206½p, hold says the Times.The overarching appeal of bingo group Rank lies in the composition its share register: two Far Eastern groups with big gaming interests, Hong Leong and Genting, are sitting on stakes of 28% and 11%respectively. A bid ? at some stage ? seems inevitable. At 90p, or 12 times current-year earnings, Rank remains a solid hold says the Times.C&C Group, the Irish-listed drinks business that makes Magners Cider, has had a rotten time of things, with its interim profits falling 9.9% in the first half of the year. The investment case is built around a three-year plan where the aim is to expand internationally, especially in the United States, and to maintain market share in the UK. C&C may eventually prove worth a gamble, especially if all the plans come off, but it is not worth backing yet. Avoid says the Independent.Carluccio's has continued to pull punters into its Italian restaurants, which also house its food shops. Its shares, which trade on an 2009 price earnings ratio of 18.5 times, are not cheap but given its resilient performance, Carluccio's shares are a good one to have an investor menu. Hold says the Independent.A purchase of Hunting is a bet that the company can secure sizeable acquisitions that will give it faster profit growth than the rest of its sector. It also requires the belief that the big oil producers will pick up their level of capital and operating expenditure next year ? a reasonable assumption given recent oil price stability around $70 a barrel. At 528½p, or ten times next year's earnings if the cash is ignored, buy says the Times.Miner Hochschild unveiled a $145m equity placing and a $115m convertible bond offering this week. The placing was at 295p and the equivalent of 9.9% of the current outstanding shares were placed. Based on 2010 forecasts, the group is trading at a discount to FTSE 100 peer Fresnillo, on an earnings multiple of 15.1 times compared with 31.8 at its larger peer. The stance on the shares remains buy 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.