Sunday tips round-up: Mothercare, James Fisher, Footsie Dogs

22nd Nov 2009 11:51

In India, there are 24m babies born every year. In China, there are 19m. These figures underscore the level of opportunity Mothercare has in its new international growth markets. There are opportunities in Britain too. In the next three years about 60pc of its UK store leases are up for rent review. It is likely that the company can secure significant rent reductions across its stores - or walk away. The company's shares are trading on a March 2010 earnings multiple of 18.8, falling to 16.2 in 2011. For a retailer this is undoubtedly expensive. However, the company has an excellent strategy that has solid prospects in the medium term. The Telegraph is therefore keeping a buy stance for those with a longer-term time horizon. The market appears to be stuck on concerns about James Fisher's Everard arm, which ships oil around the UK and Europe. Obviously, prospects will not improve in this business until there is a significant upturn in the economy. But Fisher's technical units offer services such as submarine rescue services, North Sea oil and gas engineering and support and nuclear decommissioning operations. These are high-margin operations with skills that are in demand.The shares are trading on a December 2009 earnings multiple of 11.1 - close to a historical low for this company - and they are yielding 3.2pc. The stance remains buy says the Telegraph.The Mail on Sunday has reviewed its Dogs of the Footsie portfolio. This time, only one company is leaving - Standard Life. It is replaced by gas and electricity group Scottish and Southern Energy, which joins BP, Cable & Wireless, Shell, Man Group, National Grid, Royal SunAlliance, Severn Trent, United Utilities and Vodafone.Halving in value over 30 months is underwhelming, to say the least. But perhaps the portfolio will begin to deliver stronger share price gains as and when the economic environment stabilises, the Mail says.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.