Sunday tips round-up: Lookers, Providence, New Britain...

31st Oct 2010 13:04

Car dealer Lookers is continuing to trade ahead of expectations - and it looks like earnings upgrades are in prospect. Trading is ahead of last year and is better than the company's own budget. The shares are trading on a December 2010 earnings multiple of 10.2, falling to 9.2 next year and yielding 2.8%. A buy says the Sunday Telegraph.Providence Resources is an intriguing business. Founded in 1997, its main ambition is to extract oil from around the coast of Ireland. It is exploring in the Celtic Sea, the Irish Sea and off the west coast. Providence may secure cash by selling assets that are not a central part of its business, including a share in a Nigerian licence, worth about £15m, and, possibly, the oil fields in the Gulf of Mexico. Providence shares are 178½p but should rise fast in the next six to 18 months. Several Irish projects are soon to enter a new phase, so there should be plenty of positive news next year and the year after. Some analysts even believe that the shares are worth more than 700p. This stock is not for the cautious, but adventure-seeking investors might do well says the Mail on Sunday.The best way to play the elevated gold price is through gold companies increasing production. One smaller miner based in Fiji is Vatukoula Gold Mines, and the shares are a new speculative buy today. The company is ramping up production at what was once known as the Emperor Gold Mine, which is on Fiji's largest island, Viti Levu. It is estimated that the mine currently contains 4.3m ounces of gold - and the company is targeting production of 100,000 ounces per year. Buy says the Sunday Telegraph.New Britain has more than 75,000 hectares of oil palm plantations, as well as its own seed production and plant breeding facility. Responsible, sustainable expansion is planned. The price of palm oil has risen sharply in recent months, in line with most agricultural commodities, and should remain high over the next few years, boosted by rising demand in China and India. The share price barely moved until August of this year, since when it has risen sharply. At current levels, investors would be advised to take some profit and sell around half their stock. New investors should keep a close eye on the share price and consider buying on short-term weakness says the Mail on Sunday.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.