Sunday tips round-up: Serco, EasyDate, Vitec, Smiths

17th Oct 2010 14:01

When the coalition Government unveils its Comprehensive Spending Review on Wednesday following weeks of speculation, outsourcing companies will be watching particularly closely where the axe falls on public spending. Support services companies, such as Serco, have stressed that the spending cuts should be regarded as an opportunity rather than a threat. But as the shares are currently trading at 18.5 times 2010 earnings and providing a yield of just 1.2pc, the Telegraph's Questor is holding fire on buying more of Serco until the spending cuts are revealed.EasyDate is Britain's leading online dating group and owns a portfolio of brands, catering for a range of ages and interest groups. It was founded five years ago by Bill Dobbie, an entrepreneurial Scot who already knew a fair bit about the potential of the internet, having set up and sold an online DVD rental business. Dobbie is highly ambitious and believes his company could easily be worth £300 million within a few years. Buy a few shares and hope he is right, says the Mail on Sunday.Vitec is a leader in the camera accessory market, selling equipment to broadcasters and professional photographers worldwide. Interest in video and photography is growing fast as people post content on social networking sites. At the other end of the spectrum, it has begun to work with the police, providing them with technology that enables them to monitor in real time events filmed from the air. Vitec has real potential over the next five years. Existing investors should hold tight. New ones may want to pick up shares now, says the Mail on Sunday.Elsewhere in companies operating in the security sector, the Telegraph's Questor looks at Smiths Group. Like Mark Twain, reports of the death of the company appear to be an exaggeration. The shares got a fillip early last week after analysts at UBS said the shares could be worth more than £20 each if the company was broken up. However Philip Bowman, chief executive, has been at pains to stress he is not about to start a sell-off of the various divisions, which range from medical equipment to parts for oil and gas processing to airport scanners. The paper says hold.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.