Thursday tips round-up: BHP Billiton, RWS, Sports Direct

21st Apr 2011 06:34

So far, the Independent has been pretty bullish on the big diversified mining groups. BHP Billiton in particular has stood out, boasting not just an enviable exposure to key commodities such as iron ore and coal, but also one of the strongest balance sheets in the sector. BHP's balance sheet, and its still-affordable valuation of under 11 times forward earnings, argues against a "sell" stance. Hold, says the Independent.The Telegraph also takes a look at BHP. It notes shares are trading on June 2011 earning multiple of 10, falling to 8.5 next year. The prospective yield is 2.3%. The shares are still a buy for BHP's cash-generating ability and the continuing expansion of its production, the paper says.RWS provides intellectual property (IP) support services for a wide range of industries. Moves to introduce a European Union-wide patent regime seem to have fallen foul of EU law, which removes what might have been something of a hurdle to the company. Supported by a strong balance sheet and an attractive yield, RWS's shares appear an interesting commitment to a somewhat arcane dimension of the industrial and investment universe. Buy, says the Scotsman.Retailer Sports Direct has improved profits and sales sharply for the past three years, and has plenty of growth ahead of it in Europe - not to mention the boost from the London Olympics and European Championship football. Moreover, despite its recent surge, the stock trades on an undemanding forward earnings multiple of 11.5. With the prospect of its dividend returning in its 2011-12 financial year, the Independent says buy.In a statement short of numbers, the trading platform supplier and consultancy Fidessa said it was winning "significant new orders" despite the regulatory and economic uncertainty hanging over its financial-institution customers. The Independent thinks the market is right to award Fidessa's cash generation (with regular special dividends), growth prospects, lack of debt, and restraint on acquisitions. Buy, the paper recommends.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.---RG