Thursday tips round-up: Lookers, Renewable Energy, ITV...

18th Aug 2011 06:54

Car dealership Lookers wants to use the cash to give it ammunition for acquisitions, in both the parts and motors divisions. Peter Jones, chief executive, believes it is a buyer's market at present and that sellers will seek it out. Making judicious acquisitions in today's climate would leave it well-placed when, or if, the economy recovers its vigour. However, the group in its present form is equipping itself well. Its orders for new cars in September are already greater than sales in the entire month last year. In any case, about a quarter of the group's business is made up of the resilient aftersales and parts divisions. In a further sign of confidence, the interim dividend was raised by a third to 0.8p a share. At about eight times next year's earnings, it might be worth taking Lookers for a spin, suggest the Times.Renewable Energy Generation (REG) concentrates on smaller wind farm sites - comprising between two and seven 2MW-turbines, which operate with an efficiency rate of about 30 per cent - and has a strong record for the percentage of projects that it has progressed through planning. A bid approach in January of 67.7p was rejected by the board, on the basis it significantly undervalued the company. With the balance sheet in good shape, and the company confident it will require no further cash calls, the shares, trading at around 43.75p, to yield a little under 5 per cent, could make this worth a look, according to the Scotsman, which recommends a buy.It is not just Britain's teenagers who are waiting for the start of X Factor this weekend but the bosses at ITV as well. They will be rubbing their hands with glee at the return of one of the broadcaster's hottest properties. Happily for investors, the group's financials are rosier. The company announced at the end of July that it had boosted revenues by 4 per cent to just over £1bn in the first half of the year. The main focus of management has been shaking up the revenue model, which remains far too dependent on the ups and downs of the advertising market. The stock itself looks relatively cheap, having fallen by nearly 37 per cent since hitting the recent peak of above 93p in early March. But, given the risks stemming from the advertising market in the near term, we would wait a while before buying. Hold, says the Independent.Since it took off as a quoted company last year, Flybe has experienced more than a little turbulence. It issued a profit warning in May, highlighting the high price of oil, weak consumer confidence and a spot of bother with the weather. However, yesterday's interim management statement provided little to scare nervous flyers. Passenger revenue was up, passenger numbers were up and the load factor ? how full its planes are ? had also improved. But while the direction of movement seems comforting, the absolute numbers may give cause for concern. But with Ryanair's network spreading quickly, Flybe will be left with thin pickings. At six times next year's earnings, it looks cheap next to its peers. But until there is evidence that it can fill more than 63 per cent of its planes, long-term holders should avoid, the Times recommends.BCPlease 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.