Sunday tips round-up: Smith & Nephew, RPC, Ferrexpo...

27th Mar 2011 15:00

Last week, BlackRock - the world's largest asset management firm - increased its position in medical device group Smith & Nephew to almost 45m shares, representing 5.02% of the company, good news for a company consistently at the centre of takeover speculation.Shares in the artificial joint maker are trading on a December 2011 earnings multiple of 14.4 times, falling to 13.3 next year. Although the group operates in a competitive market, the long-term prospects for the business are very sound. The shares are a buy says the Telegraph.RPC makes rigid plastic packaging - including the bottles used for Heinz ketchup. It also produces coffee capsules, cosmetics containers, tablet dispensers and many other items. This trend towards "lightweighting" means customers are moving to plastic from glass and metal and they are also looking for longer shelf life. The shares are trading on a March 2011 earnings multiple of 11.1, falling to 9.4 next year. The prospective yield is 3.5%. Buy says the Telegraph.The Mail on Sunday also likes RPC, which said last week profits for the 12 months to March 31 would be better than expected. Chief executive Ron Marsh admitted polymer prices have risen over the past year, but he said the firm has overcome this by selling more products and moving into higher-margin areas. Existing investors should hold. New investors could buy on weakness, the newspaper adds.Over the past five years, chemical group Yule Catto has streamlined the business, cutting costs and debt, and selling non-core subsidiaries to focus the company on polymers. The company is now a key supplier to the medical industry, where its polymers are used in catheters, gloves and condoms and it can compensate for sluggish European growth by selling more in Asia. The shares are likely to start climbing in the next few months. Buy says the Mail on Sunday.Ukrainan-based iron ore group Ferrexpo is operating at full capacity and expects continued strong demand. In the year to December, revenues doubled to $1.3bn (£803m) and pre-tax profits soared five-fold to $585m. Iron ore demand should remain robust as steel-makers continue to recover, Buy says the Sunday 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.