Friday tips round-up: Unilever, Schroders, RSA

7th Aug 2009 06:44

The long-term case for Unilever is that it has the highest emerging market exposure of its peers ? about 50% of sales ? and so will benefit as deodorant, detergent and salad dressings become staples for more of the world's population. Yesterday's numbers show recovery from years of underperformance has farther to run. At £16.29, or 13 times 2010 earnings, buy says the Times.Is Unilever now a growth stock? Yesterday's figures certainly suggest it is after the company posted 2pc volume growth in the second quarter - reversing several quarters of falling sales. Taking a long-term view, the stance remains buy adds the Telegraph.Although Gem Diamonds is likely to be loss-making in 2009 and the outlook for the rest of the year is far from certain, it appears that the market really has now bottomed out. Most of its Ellendale mine is on care and maintenance, but the real reason to own the shares is Letseng. The shares are now just 13pc below their initial recommendation price and improving prospects means the shares are now a buy, up from hold says the Telegraph.Schroders, the investment management group, was founded in 1804 and in that time has had its fair share of ups and downs.The message coming from current chief executive Michael Dobson is that the dark days of February and March are behind the group, and as long as market conditions keep gradually improving, Schroders is in for a fine time. Caution is still needed, but the Independent would now be a backer of Schroders stock. Buy.There are there are reasons to be cheerful over insurer RSA. The group is well spread with operations in a number of lucrative emerging markets, which is helping to offset the miserable performance of the UK non-life insurance market. Moreover, yesterday's half-year results, which showed operating profits falling to £392m from £440m last year, were actually better than most industry experts had expected. Buy says the Independent.Cobham's underlying profits in the first half of the year were up 32% to £141m and the interim dividend jumped 10%. It means the shares are trading on a price-earnings ratio of 10.2 times or a 30% discount to average levels. But with investors looking for cyclical stocks, it is only a hold says the Independent.A tightening of defence budgets remains a concern but Cobham's niche, defence electronics, should be among the least susceptible to cuts. So too should cyber warfare, another strength. That leaves two worries harder to call ? that Cobham will suffer from the retirement of Allan Cook, its well-connected chief executive; and that last month's launch of a US government inquiry into Conax, Cobham's Florida subsidiary. Hold on says the Times.Hotel group Millennium & Copthorne has a strong asset base. But after a 35 per cent rise in a month to 322p, or 17 times next year's earnings, there will be better times to buy says the Times.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.