Thursday tips round-up: UBM, Mouchel, Vertu Motors

2nd Sep 2010 06:51

Milicruit is, alas, not a recruitment site for future leaders of the Labour Party but a virtual career fair that puts together former members of the US military and potential employers in "an interactive 3-D virtual setting". The notion has one huge advantage for companies such as UBM that operate such "events": they are an awful lot cheaper than their real-world equivalent. UBM shares change hands on less than 12 times this year's earnings. A good play on economic recovery, says the Times.Engineering consulting and services group Mouchel has much to recommend it from an investor's point of view. The case for optimism in the face of government spending cuts is a compelling one. And the shares have been dragged down - inappropriately, in our view - by recent read-across from troubled property group Connaught. Taken together, Mouchel's stock has plenty of room for growth. Buy now, says the Independent.Shares in Vertu Motors, the UK's eighth-largest motor retailer with 67 outlets, decelerated to a 12-month low of just under 26p on Tuesday. Vertu appears to be fairly valued on a 2011 price-earnings ratio of 11.1. But as it is considering reinstating its dividend, we think there is fuel left in Vertu's tank, despite the uncertain consumer environment. Buy, says the Indpendent.Another day, another drilling report from one of our oil explorers in some far-flung corner of the globe. The latest is from Soco International, from a well in Vietnam. Based on what is already there, JPMorgan Cazenove assigns a net asset value of 352p a share, though the 100 million barrels of oil thought to be at the latest Vietnam well could be worth another 77p a share. Note the qualifications, for Soco shares, which ticked up almost 3 per cent to 484½ yesterday, it is a clear case of wait and see, says the Times. Emblaze is now worth less than £50 million, and a terse announcement that it is in advanced negotiations to sell its stake in Formula Solutions, an Israeli software investment business, looks like the beginning of the end. Investors will be left with a hotchpotch of mobile phone-related technology. The sale leaves Emblaze looking like a cash shell facing further losses as it continues to pursue its ambitions in mobile. A firm "sell", says the Times.Financial adviser and broker Hargreaves Landsdown yesterday announced record pre-tax profits, fund inflows any money manager would kill for and a special dividend. Co-founder Hargreaves is stepping down from management to concentrate on marketing and communications, and the Independent reckons that could be a savvy move from an investor's point of view. Buy, it 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.