Sunday share tips: BG Group, Topps Tiles, Lo-Q

7th Jul 2013 22:17

Much like the shares of many homebuilders, trading at 12.2 times earnings Topps Tiles´s shares look fully valued. Similarly, the yield is also a welcome, but not spectacular, 2.1 per cent. However, the company is well managed and cutting costs while at the same time planning for an expansion in the number of outlets. That means that when the uptick in its market comes - whenever that is - it will make hay. Even so, there may be a better time to buy the shares. On balance, the rating has to be a hold, but investors should be ready to pounce on Topps shares in any broader market sell off. Topps Tiles is one company you should certainly place on your watch list, says The Sunday Telegraph´s Questor team. Shares of Lo-Q, the designer of the queuing technology which allows a user to make full use of his time without having to keep his place - physically - waiting in a queue, have vaulted 50% higher in the last six months. That follows on an impressive run last year. For businesses, it provides an important new revenue generator for those running at or near capacity. The success of the technology is such that its broker - Canaccord - sees sales jumping to £42.4m next year from an estimated £38.7m this year. Nevertheless, on most valuation metrics the shares look more than a little pricey and are now changing hands at 30 times this year´s earnings forecasts. Its Chief Executive Officer, however, is adamant that the best still lies ahead for the company, as the potential impact on both the top and bottom line from entry to new markets hasn't been factored into those numbers. More importantly, longer-term this is a play on the unfolding mobile phone revolution and the ability of Lo-Q's technology to bust queues of any description. Sit back and enjoy the ride says The Financial Mail on Sunday´s Midas column.Contrary to what some had expected stock of BG, the oil and gas giant, actually rose in the face of the political tensions in Egypt. That was due to a research note put out by analysts at RBC Capital Markets. The broker stressed the critical nature of the gas which BG supplies to Egypt - a country from which it admittedly derives a fifth of its production. The country's population is surging and there aren't enough jobs to go round as it is. A disruption to the energy system is the last thing a shaky interim government - of whatever colour - needs. Also worth noting is the fact that most of the company´s operations are located offshore, offering it a natural buffer of sorts, writes The Sunday Times´s Danny Fortson. 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.