Thursday tips round-up: Flybe, WH Smith

12th Jun 2014 08:30

It's crunch time for Flybe as it prepares to start flights from London City airport starting in October, as part of a five year deal. The above are projected to account for half of the company's growth in commercial flights. That comes as the firm prepares to launch additional holiday routes to Spain, France and the ski regions this year. The airline is in the midst of a restructuring under Saad Hammad, its new Chief Executive which came on board from easyJet. In a clever ploy Flybe is also looking to dominate the niche market for short-haul business routes that require smaller aircraft and has devised a strategy to compete with trains by providing windows that are better suited to business passengers. However, the carrier is betting heavily on success where others, such as CityJet, have failed before - London City airport. Hence, it will be best to wait and see what benefit the new City London routes have on the bottom line. Hold, says The Times´s Tempus.WH Smith has managed to deliver predictable performance akin to a utility even while restructuring. Said process began back in 2008. The company moved to build up its presence in airports, railway stations, hospitals and motorway service stations while reacting to the decline of the high street through careful cost-cutting. Thus, earnings per share at the company have been expanding by about 13% a year over the last five years. Unfortunately, the high street looks unlikely to recover. Yet a pick-up in holiday travel over the next few months seems likely. At 14 times' earnings - below the sector average of 17 - and with a 3% dividend yield the firm offers solid income and looks like a measured bet on travel for growth, Tempus writes. 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.AB