Sunday tips round-up: B&B, Northern Rock psbs, Bloomsbury...

28th Nov 2010 11:30

Bradford & Bingley and Northern Rock bondholders this weekend have to contemplate whether or not to accept a derisory offer for perpetual subordinated bonds they bought in the two banks many years ago, when they were small but flourishing building societies.Investors who feel they need cash now may prefer to take the bird in the hand, even if it is rather tough and scrawny. But investors who can sit it out should almost certainly do so. Chances are there will be more generous pickings in the future - even if that future is many years away, the Mail on Sunday says.Dignity, the UK's only listed undertaker, has never really been a yield play - so the recent cash return of £1 per share was a nice bonus. However, the shares have underperformed since then and now looks like a good time to buy, the Telegraph says. The shares are trading on a December 2010 earnings multiple of 13.7 times, falling to 12.1 next year. The prospective yield is 1.8%.Harry Potter publisher Bloomsbury's move into digital, fashion and other specialist publishing bodes well for profits going forward, although there are obviously risks associated with this. The shares are trading on a December 2010 earnings multiple of 14.9, falling to 13 next year. The yield, at 4.2%, is attractive.The valuation looks relatively cheap and the City likes the company's new strategy, which was presented to analysts in June. All four analysts covering the stock and monitored by Bloomberg have buy ratings. Buy says the Telegraph.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.