Sunday tips round-up: Centrica, CPP, WPP...

6th Mar 2011 11:19

Centrica is a buy despite the big unknowns of a looming reform of the country's electricity market - with crucial consequences for the potential returns of utility investors - and a possible Competition Commission inquiry.But ministers don't have much choice but to make decisions that keep the energy companies profitable, despite any moaning that their subsidies aren't high enough. If the returns aren't high enough, the utility titans could easily row back on the massive investment plans needed to keep Britain's lights on over the next decade. That's why Centrica is still a buy says the Telegraph.CPP Group describes itself as an international 'life assistance' business, which boils down to card protection, with some mobile phone, legal and home emergency insurance thrown in. Investors have done well but the price should continue to increase. The dividend may well rise too, as CPP generates plenty of cash and has no debt. Existing investors should hold on. New ones may choose to buy on weakness, the Mail on Sunday suggests.WPP's exposure to the twin growth drivers of emerging markets and digital continue to put it in a strong position. Of all the major marketing groups, WPP has a clear lead in most fast-growing markets, with Asia - led by China - a particular strong point in recent years. Buy says the Telegraph.Hummingbird has a licence from the Liberian government to explore and mine for gold in an area half the size of Wales. The territory is part of a rich seam of gold deposits stretching along west Africa, but in Liberia, decades of war have prevented any real exploration - until now. Hummingbird joined Aim at 167p and today the shares are 1431/2p, hit largely by concerns about political risk. No one could describe the shares as riskfree, but the potential rewards are immense and at this price they look very tempting. The adventurous should have a punt, the Mail on Sunday says.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.