Thursday tips round-up: FirstGroup, Compass, Land Securities

14th May 2009 06:02

Worsening trends in employment mean that FirstGroup's UK rail business is not out of the woods - but merely in a better position than the rail operations of unprotected peers, such as National Express. However, at 365p, up 5¾p, or less than nine times earnings, and yielding 5.1 per cent, First is worth buying on weakness, says the Times.The Telegraph adds that given their defensive characteristics, they're worth buying.The cleverer person might well point out that Compass has a rather dodgy debt-fuelled past, the Independent now sees very few reasons not to buy the shares. The group says it is expecting a strong second half and the paper said it would tend to agree with the experts at Killik & Co who argue that: "Compass is the market leader in an industry with significant growth potential and we believe the shares should be a core holding in an equity portfolio." Buy.But although Land Securities has £1.6 billion of cash, its lending arrangements mean that this is more likely to be used to stay within its 80 per cent loan-to-value limit, rather than to pick up properties at bargain prices. At 468p, down 71p, or a 6 per cent discount to Cazenove's estimate of next year's net asset value, the shares are up with events. Avoid, says the Times.H&T, the UK's biggest pawnbroker, trades at a huge 62 per cent discount to its main rival, according to watchers at Daniel Stewart, and with the price of gold continuing to head north, the Independent expects investors to get a healthy return if they buy today. Buy.VT Group has plenty of opportunities at home: it is bidding for the commercial unit of the UK Atomic Energy Authority and £500 million tender for the Army recruitment programme. Straitened public finances should further accelerate the pace of outsourcing, especially among local authorities, where VT is underweight. At 478p, up 28¼p, or 12 times earnings, buy, says the times.Some of the best investment advice is, only bet on something you understand. One advantage of Greggs, the high street baker, is that it is pretty tough not to get the sausage roll and Chelsea bun proposition. According to analysts at Numis, trading on 11 times December 2009 earnings per share, the stock is a hold. The Independent agrees. Hold.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.