Friday tips round up: Vodafone, Rio Tinto, Mitchells and Butlers

10th Feb 2012 06:59

In the Times Tempus bangs the drum for one of his picks of the year: Vodafone. Yesterday, despite issuing a reasonable trading update the stock rose only 0.5%. Over the last 12 months the company is down 3%.This under-performance clearly perplexes Tempus, who believes Vodafone's dominant position in very high growth markets like India and Turkey make it a good long term buy. The stock trades at 11 times earnings with an impressive yield of 8%.Meanwhile another immense firm gets the thumbs up from Questor in the Telegraph. Rio Tinto's Chief Executive and Finance Director both declined bonuses this year as a result of a bad purchase of the Canadian company Alcan at the very zenith of the commodities bubble.Rio has taken a $9bn write down on the transaction but that does not tell the whole story thinks Questor. The company only trades at 7.7 times earnings and the yield is 2.2%. With the firm investing for growth and signs China may not be in for the hard landing many had feared, Rio Tinto is a buy.In the Independent, Sharewatch thinks that within the distressed pub sector Mitchells & Butlers is the top pick, trading at just 9 times earnings with the possibility of a Joe Lewis bid possible in a few months time.BSPlease 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.