Sunday tips round-up: Kazakhmys, Axis-Shield, 5 post-slump shares

14th Aug 2011 19:43

Kazakhmys operates in Kazakhstan, where it is predominantly a copper miner, though it also produces zinc, silver and gold and operates a major power station. The market for its copper is partly in Europe, but mainly in China, which is an immediate neighbour. Kazakhmys is at risk in the event of a major global slump, but its links to China, which takes almost 50% of its output, mean that it is most aligned to an economy that in the long run is only ever going to grow. That potential is clear in the huge Chinese investment in new mining assets at the group. Buy for the long-term says the Mail on Sunday.Medical testing equipment group Axis-Shield has spent years and millions of pounds developing an instrument called the NycoCard. A fully automated version of this, called Afinion, allows rapid testing for a range of illnesses, including diabetes and related heart and liver conditions. The Mail on Sunday reckons that years of research and development are coming to fruition at Axis and there is a great opportunity to get on board in time for the profits to start to flow. Earlier this month the group received a takeover offer from American healthcare group Alere. Hold, the paper says.Questor from the Sunday Telegraph has been looking at potential bargains following the recent stock market shake-out and has come up with five stocks worth buying: Afren, Genus, IMI, Cineworld and Kenmare. Shares in Africa-focused oil producer Afren are trading on a December 2011 earnings multiple of just 5.8 this year, falling to 4.5 next year. They are a buy for exploration upside and the fact they were trading at a discount to the wider sector even before the falls. Shares in animal genetics company Genus, meanwhile, are down 8% from the start of August and are trading on a June 2012 earnings multiple of 18.8 times, falling to 16.6 next year. The shares remain a long-term strategic buy, in Questor's view.Engineering group IMI is down 18% since the start of the month. The company is highly cash-generative and the prospective dividend yield is 3.5%, rising to 3.9% next year. Cinemas operator Cineworld is another stock offering a very attractive yield: 6.1% based on this year's projected payment, rising to 6.7% next year. As for Kenmare, its shares are down 31% this month. The group is a Mozambique-based miner of titanium, which is used in white pigments. The multiple based on this year's projected earnings is an unappealing 41.7, but it falls to just 8.2 based on projected 2012 earnings, Questor notes.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.