Thursday tips round-up: Pearson, SuperGroup, Morgan Sindall

16th Dec 2010 06:31

Pearson still derives 75% of its revenue from print, whether that is school books, copies of the Financial Times or hit titles such as Superfreakonomics. It would be natural to assume that the publisher is in danger of coming unstuck during the undoubtedly bumpy transition to digital from paper.With the shares already trading at 14 times forecasts there could be better times to pick them up, so hold on for now, says the Times.SuperGroup, the owner of the fashion brands Superdry and Cult, has been flying high since it floated at 500p in March, with its shares soaring past 1600p earlier this month. But it was back to earth with a bump yesterday. Investors were spooked by the retailer's comments that increases in raw material prices "may affect gross margins in the next financial year". The Independent thinks the shares are a bit pricey to buy now.Morgan Sindall, the mid-cap construction company, has had a busy few months in which it has swooped to take advantage of the implosion of its rivals. It could prove to be the big beneficiary of the collapse of Connaught. With an undemanding rating and a dividend yield at 6.3 times, there is no reason not to hang on, says the Times.Ceramics group Portmeirion still trades at a discount to other luxury brands, and with £5.5m of cash on the balance sheet the company is firing up the kiln for more growth. Buy, says the Times.Hammerson, in partnership with the Oman Investment Fund, has struck a deal to offload its Bishops Square office site in London's Square Mile. While the Bishops Square sale is positive, offices are only a minor part of the Hammerson portfolio. Just over half is prime shopping centres and a fifth is retail parks. That seems worrying with the consumer outlook uncertain. But don't rush to abandon this horse, says the Independent. It is trading at a discount of more than 11 per cent to forecast net asset values for 2011, suggesting there could be mileage in holding on to the shares for now.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.