Sunday tips round-up: J Sainsbury, Rio Tinto, Aviva...

8th Aug 2010 09:03

The economic outlook is uncertain, but whatever the scenario, people still have to eat. Sainsbury's has become increasingly popular with consumers, the shares at 347p offer a decent 4.4% yield and there is always the possibility of a takeover from the Qatar Investment Authority, which bid unsuccessfully once before and retains a 26% stake. A solid investment. Buy says the Mail on Sunday.Rio Tinto is a story of earnings momentum - as last week's interim numbers showed. Almost half of the company's earnings came from its iron ore operations. It also generated almost one-fifth of its earnings from coal and has a large exposure to copper, the metal with one of the tightest supply situations. The shares are trading on a December 2012 earnings multiple of just 7 times, falling to 6.4 in 2011. The yield is 1.7%. Buy says the Telegraph.The drugs industry tends to be characterised by huge pharmaceutical companies on the one hand and small, struggling biotech companies on the other. Shire sits in the middle. Its fans point to its stable of young, profitable drugs and its excellent record on drug development. It is also praised for increasing sales and profits even though Adderall is off patent. Supporters cannot be faulted for their observations, but the shares have come far. Existing investors should sell half and keep the rest. New investors should look to buy if the price falters suggests the Mail on Sunday.There is a lot of opportunity for investors in the insurance sector - particularly for those seeking income. Aviva's 6.2% dividend yield remains attractive and the current share price level is still a good entry point for income-seekers or those wanting to employ a strategy reinvesting their dividends. 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.