Thursday tips round-up: Imagination Technologies, Mecom, Marston's

17th Mar 2011 06:29

Imagination Technologies is a British-based company that designs chips for smartphones such Apple's wildly popular iPhone and tablets like the California-based tech-giant's iPad. Smartphones and tablets is clearly the place to be. Yet, the Independent has picked Arm as our preferred stock out of the semiconductors and, as Imagination trades on a valuation of 58 times forward earnings, according to Peel Hunt, the newspaper is not inclined to change its opinion just yet.Mecom is a reformed character. This publisher of newspapers on the Continent is making a decent profit, borrowings are under control and it is heading to the dividend list for the first time. Numis Securities has the shares on less than six times this year's earnings, while a forecast total dividend this year of 14p suggests a yield approaching 6 per cent. Still speculative, but not unattractive, says the Times.Its new pubs are focused on dining ? about 70% of visits to the 2,200-strong Marston's estate involve food purchases, rising to 90% at the new estate and the evidence is that people are refusing to stop eating out but are trading down from expensive restaurants to cheaper pubs. Marston's shares sell on less than nine times this year's earnings, making them arguably the most attractive stock in a sector the Times would otherwise shun.The Independent doesn't expect Marston's shares to fizz over the next year but says on a forward earnings multiple of just 8.4 they may be worth a punt.The perception is that the Experian, the credit rating service, is reliant on a recovery in UK credit markets; as Shore Capital points out in a note, this is not necessarily so, as Experian is busy expanding its database services into growth markets. That share price fall looks overdone, 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.