Sunday tips round-up: Hochschild, Tesco, CSR

23rd Aug 2009 12:46

Precious metals miners are always highly rated - and this is certainly the case with Hochschild. The shares are trading on a December 2009 earnings multiple of 36.9 but this falls to 16.5 next year, which is much more reasonable. Although the group is paying a dividend, the yield is minimal at 0.4pc. This is a play on the rising price of silver over the medium term. The shares are a buy, says the Sunday Telegraph.Last week, supermarket group Tesco said it would create 800 new jobs by opening a banking call centre in Glasgow. The vastly-expanded financial services division is trying to capitalise on the current distrust of UK banks and capitalise on its strong brand and store network. It looks like a canny move. This news is an example of why the Sunday Telegraph prefers an investment in Tesco over J Sainbury. Tesco offers significant international exposure in growth markets and dynamically moves into new markets such as banking. Sainbury is merely a UK supermarket group. Buy.Three years ago, CSR shares were trading at more than 1500p. Today they are 452p. However, analysts expect this company to move into the black next year, forecasting profits of about $70 million for 2010. Buy and watch the recovery, says the Daily Mail.Jardine Lloyd Thompson (JLT) occupies a curious position on the London Stock Exchange as the only listed insurance broker. With rival Benfield being taken over by Aon last year, there are also hopes that JLT could itself become a bid candidate - although no potential acquirer has so far emerged. However, shares should never be bought on bid hopes alone. The Sunday Telegraph maintains buy stance on the shares, which are trading on a December 2009 earnings multiple of 13.5 times and yielding 4.4pc.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.