Thursday tips round-up: Prudential, Great Portland, Schroders...

11th Nov 2010 06:39

Prudential reported positive numbers yesterday, but the Independent is still put off by the ill-conceived £22bn bid for AIA that failed earlier this year and cost the insurer £350m. It is really a question about management, one that Prudential has yet to provide a satisfactory answer to, the paper says. It's hard to find any indication that the company has really learned anything from its misadventures, so the shares come with a health warning. We're inclined to just keep a watching brief for now. Avoid. Little to complain about in Great Portland's half-yearly update yesterday. The valuation of its portfolio rose by a healthy 7.3 per cent to £1.4bn, overcoming the recent pull-back in the commercial property recovery. The shares may appear a tad pricey, trading as they do on a 10.5 per cent premium to September 2010 net asset values, but this is a strong company exposed to a strong part of the market. Keep buying says the Independent.The Telegraph picks on a recent Morgan Stanley note in which the broker makes 19 key picks for a China portfolio and companies considered "runners up" in the analysis. Just three UK businesses made it into Morgan Stanley's 19 key picks, although four out of 10 are runners-up.Among those flying the flag for Britain are asset manager Schroders which has one of the largest established joint ventures in China, with assets under management of £5.1bn at June 2010. The Chinese asset management industry is growing fast, driven by the nation's booming output and anticipated increases in savings rates over time. Because of this Morgan Stanley thinks that Schroders' share of China profit could triple by 2016. InterContinental Hotels, owner of Holiday Inn and Crowne Plaza chains, is China's largest international hotel operator as measured by room count. Competition is fierce, but the broker thinks that in 10 to 15 years the Chinese market could be as large as the The broker also likes UBM as China offers substantial opportunity for exhibitions, while Aberdeen Asset Management, Rolls-Royce, Burberry and AstraZeneca appear on the list of "runners-up".A nice surprise from Charles Stanley the stockbroker, whose chairman, Sir David Howard, says that he's looking ahead with "a degree of optimism", despite a future that's still rather cloudy. Sir David was speaking as the company unveiled some good results for the half ending 30 September. There may be choppy waters ahead but the second half has started well and the shares, just ahead of where they were when we said buy in February, offer value at 7.9 times forecast full-year earnings. Keep buying, recommends the Independent.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.