Sunday tips round-up: Amec, Halfords, Aveva

18th Oct 2009 11:46

At the half-year stage, Amec confirmed that its average weekly net cash position for 2009 would be in the order of £700m. The Telegraph's Questor expects some of this to be used to make some complimentary acquisitions should any good opportunity appears.The shares are trading on a December 2012 earnings multiple of 17.6 times, falling to 15.4 next year. When the company's cash pile is stripped out, the current-year multiple becomes just 12.7 times, which Questor feels is derisory. The shares are yielding 2pc. Amec shares were first recommended on January 8 at 531.5p and the shares are now 56pc ahead of their initial recommendation price. Buy.The Daily Mail recommended Halfords in February when the shares were 260p. Now they are 53 per cent higher at 398.5p. Supporters believe that they could hit 450p over the coming months, but investors who bought in February would be wise to book some profits now and sell at least a third of their stock.Software group Aveva has developed software that helps to design ships and industrial plants. It is a great company with great prospects - once its end markets have recovered. The shares are trading on a current-year earnings multiple of 22.7 times, falling to 21.7 next year and 19.9 in 2012. This looks pretty stretched. Now looks like a good time to bank these profits, says the Telegraph.Talvivaara shares are 389.5p, valuing the company at more than £950 million on the stock market - not bad for a business that has yet to generate any real profit. But this is an investment for the long term. Talvivaara has worked out a way to extract a valuable commodity from the ground at a lower cost than most rivals. There may be teething problems as the company starts producing nickel in bulk but, ultimately, this stock should do well. Pera owns 23 per cent of the shares, so he certainly has the incentive to deliver on his promises. Buy, says the Daily Mail.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.