Thursday tips round-up: Stagecoach, Standard Chartered, Imagination

10th Dec 2009 06:05

Stagecoach, the bus and rail operator, proclaimed itself pleased with yesterday's half-year results: pre-tax profits were £75.5m, versus £105.2m this time last year, while earnings per share dropped to 9p, from 12.1p in 2008. The wheels could certainly come off, but on balance, we're happy to hop on Stagecoach at this stop. Buy, says the Independent.It will not be until full-year results in March that shareholders in Standard Chartered get a clearer picture of its exposure to Dubai. But £14.62, or 12 times 2010 earnings, remains reasonable value for double-digit profit growth. Hold, writes the Times.The broader trend that underpins Imagination's growth ? the rise in chip-intensive smart phones from 10 per cent of mobile sales to an estimated 40 per cent within three years ? is intact. Next year's US launch of Pure should provide a further fillip. At 224p, or 22 times next year's earnings, buy on weakness, according to the Times.The Independent agrees. It says the licensing revenue is also expected to show stronger growth, although it is harder to predict. Despite that slight uncertainty and potential threats from the wider economy, the stock has further to go. Buy.Companies whose businesses are in long-term decline ? as Photo-Me's undoubtedly is ? can generate strong returns as they fade. For example, operating margins should be boosted by purchasing efficiencies. But at 28½p, or 20 times earnings, the shares are up with events. Pass, says the Times.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.