Thursday tips round-up: Hampson, Johnson Matthey, Sportingbet

25th Nov 2010 06:41

For investors in Hampson Industries, take-off has been a long time coming. A year ago the maker of tools and composite structures for the aerospace industry agreed new terms with lenders on its £141 million debt, but this was not enough to head off a £59.5 million rights issue in February. The shares, on about eight times this year's earnings, are effectively a punt on him delivering. A buy for recovery, but not for the cautious, says the Times.The Independent has been bearish on Sportingbet, the internet bookie which lost nearly a quarter of its value after chief executive Andrew McIver said it was not for sale, for some time. The sporting betting business itself is ticking along nicely (but try and get an account and you'd wonder how), but poker is being hammered by the likes of Full Tilt and Pokerstars which still operate in the US and have been aggressively promoting their businesses here. The risks are too high. Avoid, says the Independent.The market seemed a little surprised at the strength of speciality chemicals group Johnson Matthey's halfway figures, which itself is a surprise. This is one of those world-beating British companies with huge technical expertise and a commanding position in growth markets that should be emerging well from the recession. The problem for bulls of the stock is that Johnson Matthey shares are trading on about 17 times' this year's earnings, which does not suggest much growth in the share price short-term, however fast its core markets may be expanding. Until the long-term outlook is clearer, the shares remain a strong hold, says the Times.Given the gains seen over the past few months, is it time to bank profits in Johnson Matthey, asks the Independent. Recent gains demonstrate that the market has begun warming to this business - but the metrics show it has to yet give the stock the rating it deserves. Keep buying, says the Independent. United Utilities is the stingiest payer to investors in the water sector. The company had already said it would raise dividends by the rate of inflation plus 2% in each of the four years from spring, as part of the latest regulatory round. At the current share price and assuming inflation is little-changed, the shares would yield about 5.2% for the next financial year, once the new formula is in place. This is ahead of Severn Trent, and for those wanting a pure utility play looks attractive enough, says the Times. European Goldfields appears to be in the final stages of becoming a major gold producer - should it receive the permits for its mines. This was the reason the Telegraph's Questor recommended the shares in March this year, but noted that it should be regarded as a speculative investment. As the market anticipated that permits would be granted the shares have since jumped by 124%. The paper still says buy.There are a number of companies that the Telegraph's Questor has recommended that are sitting on a substantial cash pile. Outsourcing and construction group Kier Group is one of them. The shares have been very volatile since they were first recommended at 899p on March 11 last year, but they are now up 41pc since then compared with a FTSE 100 up 52pc. The shares remain a buy, says the Telegraph. 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.