Thursday tips round up: Melrose and Chime

8th Mar 2012 06:54

Tempus in the Times is uncharacteristically effusive over engineering investor Melrose. To be fair, the company consistently beats expectations by buying under-performing companies, making them ship-shape and flogging them. With revenues up 11% over 2010 and pre-tax profits flying 32% ahead, you can see where Tempus is going. The main point is that by offering a very generous dividend policy, Melrose has handed back roughly the £785m investors paid for it at its initial public offering in 2003, and is now worth £1.5bn. Buy.Chime Communications is also in Tempus's sights, it may flog its controversial PR division and has an impressive position in sports marketing, trading at less than nine times forward earnings, with the Brazil Olympics and World Cup on the horizon, Tempus thinks the shares have some way to go.BSPlease 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.