Thursday tips round-up: Morgan Crucible, Rolls-Royce, Ted Baker

18th Nov 2010 06:53

Morgan Crucible gets three fifths of its revenues from the manufacture of high-specification ceramics. These go into areas such as defence, aerospace and medical markets. Profits for the current year will be at the top end of market forecasts, putting the shares on 13 times' this year's earnings, falling to ten times' for 2012. Further progress may be limited for now, but they remain a strong hold, or a buy on weakness, according to the Times.More than £1bn was wiped off the value of Rolls-Royce after a Qantas Airbus was forced into an emergency landing in the wake of the near disintegration of one of its Trent 900 engines. This was despite the company saying last week that the financial impact would be limited (analysts came up with about £25m after putting what the company said into their spreadsheets). Rolls-Royce is still not the cheapest of shares, however, trading on 15 times this year's earnings based on consensus forecasts while offering a moderate prospective yield of 2.7 per cent, but these are shares to buy, says the Independent.Fashion chain Ted Baker continues to impress, with sales up just more than 20% during the past quarter, according to the interim management statement the retailer released yesterday. Still, the UK outlook, even for this premium brand, is unnerving, so hold, says the Independent.The recovery at Speedy Hire has been agonisingly slow. The plant firm business has slipped further into the red, with losses of £9.9 million before amortisation and exceptions in the six months ending September, more than twice the £4.8 million loss for the same period last year. At 26¼p, the shares are a very speculative punt, the Times says.Experian's markets are all recovering gradually. The company provides credit data and services to a wide range of businesses and individuals in more than 90 countries. This is a growth business with opportunities for acquiring companies in similar areas. The shares are on about 15 times this year's earnings, but they look like having further to go, according to the Times. Recent interim figures from Electrocomponents, the world's largest distributor of electronics and maintenance products, were so good that upgrades to consensus for the current year and next year are likely to be in the order of 10pc or more. Buy, says the Telegraph.Coal is not very fashionable, but investors should not overlook the prospects for this valuable bulk commodity. Western Coal plans to triple production to 10m tonnes by 2013, having produced 3.2m tonnes in the year to March 2010. The shares look undervalued at the current level, despite recent strong gains. They are trading on a March 2011 earnings multiple of 10.1 times, falling to just 6.1 in 2012. 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.