Newspaper tips round-up: RBS, Randgold

18th Oct 2012 06:52

The fact Royal Bank of Scotland is exiting the government-backed insurance scheme is a good thing, a sign of confidence. It will also save the bank money. Still, Simon English in The Independent cautions the Government against rushing to sell its stake in RBS. He says that even City bankers who stand to pick up huge fees for advising on such a deal think it is a clear hold and wait situation. Once the economy recovers RBS will return to being the cash machine it once was. At that point a refloat of RBS at far above the 50p at which the Government bought in will suddenly look like an attractive deal for all of us. Patience.Despite the threat of higher government taxes in the African countries in which it mines for gold, Rangold Resources has a strong investment case argues Questor in The Telegraph. The miner expects to produce about 845,000 ounces of gold this year, up from 700,000 ounces last year. Indeed, analysts have pencilled in a one-third rise in earnings per share in 2012 and a 30% increase in 2013. As its price is tracks that of gold, the question is can gold move higher? Bill Goss of Pimco and HSBS think it will. Indeed, HSBC thinks gold will rally to $1,900 an ounce by the year end. Trading on an earnings multiple of 23 in the current year, falling to 17 in 2013, the shares remain a buy.CMPlease 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.