Thursday tips round-up: Robert Wiseman, SABMiller, Balfour Beatty

7th Jul 2011 06:38

Robert Wiseman, the Scottish dairy group, said its business in the 13 weeks to the beginning of this month was in line with management's expectations. We were particularly encouraged by news that the company's recent investment in refrigeration and other equipment at its Manchester dairy had led to a 50 per cent reduction in gas usage, and a saving of 200,000 litres of water every week. Such self-help moves are commendable and argue against a sell. The inflationary pressures, however, make us too cautious to buy, says the Independent.The negative shareholder reaction to the beer giant SABMiller's A$11.2bn (£7.5bn) bid for Foster's last month was understandable. Probably the only debatable decision during his 12-year tenure has been the $5.6b (£3.5bn) acquisition of the US brewer Miller in 2002, so the prospect of another mature markets deal was bound to cause nervousness. If investors have doubts over a Foster's bid, they should consider chief executive Graham Mackay's record during the past 12 deal-laden years: SABMiller has delivered growth in total shareholder returns of 579%. Hold, says the Times.Sometimes boring is good. Balfour Beatty's statement yesterday that there "has not been any material change in trading conditions" since its previous update on May 10 may not light up too many news headlines, but such comments in these tough markets will reassure investors. The shares, off ¼p at 316¼p, are trading on a multiple of 8.3 times this year's earnings. A long-term buy, the Times says.The Independent notes that the stock remains little changed from the 322p level at which it said buy in January. Along the way, it has been a bumpy ride - and it may remain so over the coming months. However, Balfour's long-term prospects are strong, says the paper, which has a hold recommendation.The travails of Full Tilt Poker bring to mind the phrase "one man's meat is another man's poison". The suspension of the online gaming operator's licences in Alderney and France may be a disaster for the company but it is a shot in the arm for rivals such as bwin.party digital entertainment. The removal ? at least for now ? of one of its biggest competitors has already had a positive impact on bwin.party, which is a speculative punt according to the Times.Robert Walters, which specialises in professional recruitment in 21 countries around the world, put out some solid numbers yesterday, many of them driven by the group's performance outside the UK. Numis backed the stock for boasting a greater growth opportunity than its British rivals in the near-term. It is currently valued at the low end of the range with a price of 10 times forward earnings. The fact that the company is investing for growth only adds to the attractions. Buy, says 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.---RG