Thursday tips round-up: JD Sports, Smiths News, Burberry

14th Apr 2011 06:31

Peter Cowgill, chief executive of branded sports wear company JD Sports, warned that his customers are beginning to suffer from public spending cuts, wage freezes and high inflation. But one can never have enough white trainers and low-slung tracksuit bottoms. Hold, says the Telegraph.Smiths News split off from the famous WH Smith Group in 2006 to focus on the business of wholesaling newspapers and magazines around the UK. Yesterday, it announced results for the six months to 28 February and revealed that a cost-cutting programme had seen the group lift profits, yet this came on declining revenues, with management blaming the fall in newspaper and magazine sales. Management have performed ably so far, but the Independent is not convinced that the shares will increase in the near term. Sell, the newspaper says.Burberry designs, sources, makes and sells luxury men's, women's and children's clothing and accessories globally. The latest update, covering the third quarter to 31 December, posted underlying growth of well over 30% excluding a contribution from an increasing involvement in China. There are issues, not least the impact the tragic events in Japan might have on demand levels. Nevertheless, the longer-term prospects for Burberry look excellent. Buy, says the Scotsman.Despite its name, NetPlay TV is not limited to offering gambling games solely to those high rollers playing in front of their living room telly. With brands including SuperCasino and Challenge Jackpot, it also offers punters the opportunity to place bets on games including roulette and bingo on their mobile and over the internet. Yesterday, it published a first-quarter update which showed another strong performance, and which was met with some enthusiasm among analysts. Hold, says the Independent. Zoo Digital licenses out software to adapt media to different formats and languages, specialising in things such as the authoring of DVD discs and the translation of DVD menus and websites. Yesterday's trading update suggested that demand for its services was holding up well, with profitability for the year to March expected to be in line with market hopes. But, with the shares trading on an enterprise multiple of nearly 11 times FinnCap's estimates for 2011, we would wait until the preliminary results later this year before wading in, which recommends holding the shares.The engineering consultant WS Atkins has been dragged down by the recession, a financial crisis in Dubai, public spending cuts in the UK and doubts about the £178m acquisition of The PBSJ Corporation in the US. However, the Telegraph believes it is time to take another look at the company, which is advising on the construction and design of temporary venues for the 2012 Olympics. It believes Atkins, which has £120m of net funds, has solid prospects. It is trading at an affordable 8.9 times 2011/12 earnings and a yield of 4.3%. Buy, the newspaper advises.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.