Thursday tips round-ip: CRH and Genus

5th Jan 2012 06:53

The Times's Tempus column takes a look at FTSE 100 new entrant CRH, an Irish constructions materials firm with global reach.Yesterday it released its biannual round up of acquisitions, with the €407m split rouhgly equally between Europe and the US. With a model that depends on buying relatively small local suppliers to the building trade the number of purchases can be dizzying, over 20 in the last six months alone. Tempus makes the point that as a new FTSE 100 entrant CRH will be more heavily studied by analysts who may not be terribly impressed by its 17 times earnings value and a margin below 5%. Tempus says, leave well alone for now.The Times also takes a quick look at the intensely niche company Genus which sells livestock semen. Before readers become offfended, this semen is very useful to farmers who want to improve the genetic quality of their stock, particularly in developing countries where farmers are under pressure to produce more intensively.Genus grew 60% last year but now trades at 21 times earnings, perhaps not an immediate buy but grab the shares on signs of weakness says Tempus.BSPlease 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.