Thursday tips round-up: Stagecoach, Game, Hochschild

9th Dec 2010 06:38

While bus and rail group Stagecoach shares have had their ups and downs recently, the trend has been positive and after a spending review-related wobble they are firmly back on track. While there's an argument for taking profits, the Independent thinks that those who hang on in there will be rewarded. Hold, the newspaper says.Things are getting less worse more slowly at Game Group. Its shops can never compete with the Tescos of this world on the price of huge releases such as Fifa 2011 and the new Call of Duty. The shares, on less than eight times next year's earnings and with the support of an 8 per cent yield, are a highly speculative punt on the continuing appetite for computer games and software, says the Times.Just one month after the second round of quantitative easing (QE), the Federal Reserve chairman raised the prospect of another round of asset purchases, which has caused investors to fret about prospects for the dollar - boosting precious metals prices. Should the silver price dip, buy Hochschild, which mines the precious metal, says the Telegraph.It has been a truly horrible year for Micro Focus Group, which provides software for large corporates and keeps this maintained. The chief executive and finance director defected, and the new management team were left to wrestle with a huge acquisition that brought with it, in their own rather bland words, "unintended consequences". Micro Focus shares sell on about 6.5 times this year's earnings, about half the software sector average. But there is sometimes a reason why shares are on a lowly rating; until more certainty emerges, avoid, says the Times.Carillion says more work is being put out to tender by local authorities trying to find contractors to take on complex transactions that bring a number of separate activities under one roof and offer economies of scale. The shares are on a bit more than nine times this year's earnings, a little expensive, but the forward order book gives confidence. Hold; buy on any weakness, says the Times.The Independent says trading on a very modest-looking multiple of just under 9 times forecast earnings for this year and the next, the shares don't look bad from a valuation standpoint. Buy, it says.Emerging market funds were some of the hardest hit by the financial crisis as frightened investors repatriated their cash. This also meant that these markets have recovered more rapidly than Western markets. The Telegraph says buy Templeton Emerging Markets.Kesa Electricals, which owns Comet in the UK and Darty in France, has a focus on higher-margin accessories, small domestic appliances and a new web platform, but the Independent doesn't think the consumer environment in 2011 will be any easier for Comet. The turnaround in the UK could take time. But hold on, the newspaper says.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.