Sunday tips round-up: Standard Chartered, Experian, Primary Health

18th Apr 2010 11:51

The Sunday Telegraph's Questor column says banking group Standard Chartered is well placed for growth thanks to its focus on emerging markets, where the demographics are most favourable. It is in these areas where most of the population growth that is estimated to happen over the next few decades will occur - creating a steady stream of new consumers for the likes of Standard Chartered, the Telegraph's columnist argues.Last week, John Tan, head of Standard Chartered's China division, said that its global markets team in the country may increase by 40%, as financial opportunities in the country open up. Standard Chartered is applying for a licence that will enable it to underwrite corporate bonds, while it is already licensed to act as a market maker in the inter-bank bond market.Trading on a projected 2010 earnings multiple of 14.7, falling to 12.4 in 2011, Questor rates the shares a buy.The market did not much take to Experian's trading update last week but Midas at the Daily Mail remains a fan over the long term, even though trading in the developed markets in Europe is still sluggish, with the credit checker's revenues in Britain actually declining. Midas states that it is not unrealistic to expect the UK business to pick up soon but in the meantime the Latin American markets are the main engines of growth. Profits for the year to 31 March 2010 are due to be published in May and analysts are predicting a rise from £513m last year to more than £530m. Holders could not be blamed for banking some profits after the stock's good run this year, but it is worth holding on to some shares because there is room for more growth, Midas reckons.Moving to companies outside the FTSE 100, the Telegraph has taken a look at Primary Health Properties (PHP), which it reckons is a good company for income seekers, as it is yielding a healthy 6% this year, fully covered by earnings. The group's dividend has been raised every year for the last 12 years, the Telegraph notes.While public spending is almost certain to be slashed after the election cuts in spending on the health service are usually unpopular, which should protect PHP's revenues whichever party gets in.The shares are trading on a multiple of 16.6 times projected 2010 earnings, dipping to 15.9 based on earnings forecast for 2011, but it is the dividend that makes the shares worth buying, the Telegraph reckons.Tate & Lyle's Splenda sweetener is well known and has been a success story for the company but AIM-listed company PureCircle has a rival product called Reb-A, based on a plant called Stevia rebaudiana, which has been approved as a food ingredient in the US, Switzerland, Australia, New Zealand and Russia and in France, though the French decision is subject to review.The Daily Mail reports that the European Food Safety Authority has issued an initial positive report, suggesting it regarded Stevia as safe. Full approval is expected within the next two years.PureCircle has clients taking test quantities of Reb-A for product development and it has partnered up with Merisant, the US company which makes the sweetener Canderel, and PepsiCo to produce PureVia, which is used in Pepsi's SoBe Life flavoured water drinks, a range of drinks popular in the US.With the market for Stevia opening up it is little surprise that the share price of PureCircle has climbed steadily, meaning that the shares trade on an eye-watering multiple of historic earnings. Furthermore, PureCircle has no exclusive rights to Stevia, the Mail notes, though the company is one of the most advanced at extracting the chemicals. There are still hurdles to overcome in Europe, the Mail warns, adding that "the path for companies in new product areas is never smooth." For those that are prepared to take on board the risk, however, the Mail thinks that PureCircle offers a good opportunity to profit from what could become the most successful sugar substitute yet developed.