Sunday tips round-up: Diploma, SABMiller, Hays

12th Jul 2009 12:53

Distributor Diploma shares are trading on a September 2009 earnings multiple of 8.9 times, which does not look too demanding, and they are yielding 5.8%, which is pretty impressive. The strength of the group's balance sheet means that this looks pretty secure and the company is well placed to snap up any businesses from distressed sellers at a bargain basement price. Shares in Diploma are a buy says the Sunday Telegraph.National Grid's shares are trading at 542.5p putting the stock on a handsome yield of 7%. The price was more than 700p last year and the decline since then seems overdone. The shares will deliver at the very least a decent income for the foreseeable future and should provide capital growth too. Buy says the Mail on Sunday.Shares in Velti, a market leader in mobile advertising, have done reasonably well this year. But it should grow exponentially over the next five years as more businesses move into the targeted mobile advertising space. Buy the shares and watch this space says the Mail on Sunday.Albermarle & Bond is the largest pawnbroking business in the UK. The shares are trading on a price-to-earnings ratio of just over 10 with a yield of 3.8% to June 2010. Fund manager Andy Brough of Schroders, who writes in the Mail on Sunday, says he would look to buy them below 200p. Shares in brewer SABMiller are trading on a March 2010 earnings multiple of 14.1 times, which looks pretty full. The shares are now yielding 3%. The dividend looks secure so the stance remains hold says the Sunday Telegraph.Recruiter Hays reported a 45% drop in net fees in Britain and Ireland in the three months to the end of June, and cut another 5% of its staff, taking the total reduction to 26% over the past year. The company also closed 15 offices during the quarter. Staffing companies are usually regarded as leading indicators of an economic recovery, but it is too early to make a buy call. The shares are trading on a June 2011 earnings multiple of 17.6, which is a bit steep, but this is supported by the dividend yield of 6.8%. Hold says the Sunday 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.