Thursday tips round-up: CRH, Tullett Prebon, Domino's Pizza

6th Jan 2011 06:40

CRH, the building materials producer that is Ireland's biggest company, spent €367m (£312m) on 17 different purchases in the second half, bringing the year's total to €536m, well ahead of the €450mspent in 2009 and back to pre-crash levels. The group has one of the strongest balance sheets in the sector and analysts now believe that the rate of investment will move sharply higher this year, with the potential for €1.5b over the next 18 months. CRH shares sell on about 20 times this year's earnings, which suggests much of the future upside is already in the price, according to the Times. Markets all over the world started the year on an upbeat note - but this year is likely to be volatile. This volatility should be good for broker Tullett Prebon. Tullett shares were first recommended at 310.3p on May 15 last year - they are now up 28%compared with a FTSE 100 up 15%. The Telegraph says buy.Among the more startling figures in yesterday's quarterly trading update for the fast-food company Domino's Pizza is a 10.3% rise in like-for-like sales in 553 older stores last year, after an 8.6% rise in 501 of these in 2009. The shares have straight-lined from about three quid at the start of 2010 to 561½p last night and now sell on approaching 30 times' 2011's earnings. One would not bet against that upward trend resuming in due course, the Times says.Games Workshop, which sells toy soldiers, is an erratic business. Yesterday it became apparent that not all of its staff were suited to the format and a number had quit in the summer, causing disruption at a time when the hobby should have been at its peak. The share price is equally erratic, having started last year at about £2.50 and peaked two quid higher in September. Peel Hunt, the broker, expects profits of £12 million in the current financial year to the end of May, which puts the shares on about 13 times earnings. Not worth chasing at this level, says the Times.Just before Christmas, oil group Gulfsands Petroleum announced the disposal of some of its US assets. This was good news, as investors had been waiting for this sale for some time. Trading on a December 2011 earnings multiple of just nine times, falling to 5.9 in 2012, the shares remain a buy according to The Telegraph.