Thursday tips round-up: Carillion, WanDisco

3rd Jul 2014 08:39

In recent times construction and support services firm Carillion has been reducing its UK construction business so as not to have to take on just any low-margin work going. While sensible that resulted in cash outflows and a fall in its share price towards its dividend level, potentially signalling for some that its pay-out might be in danger. Yet that was not the case, as it turned out. As well, the Middle East market has improved since the collapse of the Dubai property bubble and in other hot-spots, with more work around now in the run up to the World Cup in Qatar and the possibility of the Expo being held in Dubai come 2020. Support services contracts for the public sector are also picking up ahead of the end of the year and the pre-election purdah. Hence, now that the obvious possible sources of worry around the stock have been resolved,and given its stable debt level and high dividend yield the stock should continue advancing over the rest of the year, writes The Times's Tempus. Big data firm Wandisco may be at an inflection point. Following the recent share price correction in the stock much of the froth has come off. Interestingly, despite the above it just announced the acquisition of OhmData. The three-man San Francisco-based team makes software that lets companies write computer programmes which outfits such as Facebook use to search their vast databases of personal information. That comes amid increasingly high demand for big data software from companies ranging from the likes of Tesco to social networking sites or Walmart in the US, with whom it just renewed a contract for its Asset Liability Management products. However, for the time being this early stage company continues to burn off cash. Hence, the stock is still risky, "but worth a punt with this positive momentum. Buy," says The Daily Telegraph's Questor column.ABPlease 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.