Thursday tips round-up: Compass, Oilex, Experian...

19th May 2011 06:40

There is little to complain about in Compass's first-half figures, which indicate that the world's biggest caterer is moving forward on all fronts. But it is fast approaching a point where it has to take some strategic decisions over the balance sheet. Britain and continental Europe are looking decidedly slow, but both the US and the rest of the world notched up a higher share of group revenues in the first half. The shares, down 4p at 575p, sell on about 15 times' this year's earnings. Given the uncertainties, high enough for now, says the Times.Oilex is very much an exploration company. February's results showed a loss of $8.5m, reflecting exploration expenditure costs mainly in India. However, for those of a speculative bent, the shares could be worth a look. Oilex has a 45% interest in a large acreage position onshore India, which is thought to contain very substantial reserves of gas. In addition, the company is thought to have potentially very valuable reserves of shale oil. In addition, the company is developing its licence in the north west shelf in Australia, with the first exploration well anticipated to be spudded-in shortly. Oilex is obviously a speculation but one that could prove rewarding, provided the risks are understood, according to the Scotsman, who recommends a buy.Experian has bought back $350m of its own shares but this month agreed the purchase, for up to $400m, of Computec, a credit bureau in Colombia.While there is still growth in the developed world, the sort of credit data and services it provides are needed increasingly as economies elsewhere and their respective banking sectors mature. Experian, with its exposure to banks and individuals seeking loans, understandably suffered in the credit crisis, but all four sectors and all four geographical areas are back in growth. The shares, little changed at 795½p last night, sell on about 14 times this year's earnings and the Times thinks they should have farther to go long-term.Amec indicated in its trading statement this month that the pipeline for further acquisitions was positive, but not many analysts expected the company to move quite so quickly. The consulting engineer and project manager is buying an environmental services company based in Georgia in the United States to complement its existing Earth & Environmental business. Mactec, which is being bought for $280m (£173m), is active in the eastern US, while Amec's existing business is stronger in the West and in Canada. The intention is to grow further into markets such as continental Europe, Australia and South Africa as environmental standards become more stringent. The Mactec deal will slightly increase earnings this year and puts the shares, up 21p to 1,172.5p, on a chunky 16 times' this year's earnings. At best, a hold, says the Times.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.