Thursday tips round-up: Weir, Hilton Food, De La Rue

17th Sep 2009 06:11

Capital expenditure by miners shows signs of picking up, leaving Weir's onshore US gas activities as its biggest weakness. But at 678p, down 20p, or 15 times next year's earnings, this is no time to sell out. A solid hold, according to the Times.Hilton Food's shares are trading on a December 2009 earnings multiple of 10.4 times, falling to 9.3 in 2010 and yielding a worthwhile 4.5pc. This rating is not demanding as the company is expected to grow earnings by more than 12pc in the current year. There should be more growth to come from Central Europe in the future. Buy, says the Telegraph.Investors largely act in unison and the herd prefers riskier stocks than De La Rue at present. As such, investors will have a happier time if they back racier shares. Reluctantly, the Independent would avoid the stock.The European Climate Exchange may have been a target of environmental protests in London last month, but shareholders in the screen-based carbon-trading bourse have little cause to complain. However, at 880p, or a stock market value of £420 million, more than 80 times this year's forecast pre-tax profits, the shares already discount stellar growth. There should be better times to buy, according to the Times.If you fancy a punt on Regal Petroleum, now is the time. This is not because yesterday's interim results showed that its revenues were up 30 per cent, production was up 50 per cent, operating losses had been trimmed by 41 per cent to $6m, and it had $160m in cash. No, it is because by late November the Aim-listed, Ukraine-focused oil and gas exploration group will have completed its resource update, which has a good chance of sending the rather undervalued stock bobbing upwards. Buy, says the Independent.Tenon might seem better suited to recession than recovery. The biggest activity of this AIM-listed company, which floated with the objective of consolidating smaller accountancy firms, is corporate restructuring and recovery ? handling the affairs of mostly private companies, in the £5 million to £50 million range, that have entered administration, liquidation or voluntary arrangements. With Tenon able to accelerate growth through bolt-on acquisitions, the shares, at 54¼p, or eight times earnings, have further to go. Buy, says the Times.Yesterday, in its interim results from 1 May to 15 September, Northgate said vehicle utilisation rates had averaged 91 per cent, up from 88 per cent last year. Northgate trades on a relatively low 2010 price-earnings ratio of 7.2 times and analysts believe it is a bargain. But the risk of a double dip recession in Spain, which has been one of Europe's troubled economies, means the Independent is cautious and would urge "hold". 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.