Sunday tips round-up: Majestic Wine, Cape, Cineworld

9th Jan 2011 10:39

Majestic sells wine that is frequently unavailable elsewhere, it sells at a discount, is extremely efficient and generates plenty of cash, so dividends are generous.Besides which, Britain's interest in wine has been growing steadily for years and will probably continue doing so. At 405.75p, Majestic shares have further to go. Buy says the Mail on Sunday.Cape provides services such as insulation, scaffolding and maintenance to the energy and minerals sector. Management needs to return the company to organic growth to gain a substantial re-rating - and that is not expected until the second half of this year. However, the company's return to the dividend list, its impressive performance on debt reduction and its improving end markets should support the shares until then, despite continuing worries over margins. The shares still appear undervalued in comparison with peers and the rating remains buy says the Telegraph.Snow in December hit many businesses hard. Cinema group Cineworld was no exception - but it has not had a major impact on results. There is also a clear recovery in advertising and this is good news for prospects in 2011. A number of blockbuster films are slated for release including the 3D releases of Harry Potter and the Deathly Hallows (Part 2), Pirates of the Caribbean: On Stranger Tides, and Tintin.The shares are trading on a December 2011 earnings multiple of 12.5 times and yielding a very respectable 4.8%. This is because the shares are being priced as an income share rather than a growth share. Many in the City believe it should actually be priced as a growth share - and trade on a higher earnings multiple. Still a 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.