Thursday's tips round-up: Hochschild, FirstGroup, ENRC

20th Aug 2009 06:31

The mining sector has become something of a dangerous place to put your money in recent months, with the industry having to contend with volatile prices, merger speculation and grumpy Chinese buyers. With Hochschild, at least punters avoid some of these hazards. Further cost savings are expected, and with the shares trading at an unjustified discount to the sector, we reckon it is worth a bet. Buy, says the Independent.FirstGroup shares were recommended on May 14 at 356p and they are just a touch below that level now. However, with the shares trading on a March 2010 earnings multiple of just 8.8 and an impressive yield of 5.8pc, the stance on the shares remains buy, writes the Telegraph.ENRC shares jumped 6 per cent to 825.5p yesterday, comfortably above their 2007 float price of 540p. This values them a hefty 23 times the average earnings forecast by analysts for the full year. It's an extravagant premium for a niche miner in a volatile sector, not least when Mr Sittard warns that although sales volumes are rising, prices will not recover to 2008 levels. Too expensive, writes the Times.The Independent thinks that shares in Shore Capital have some way to go, and this level, despite yesterday's increase, remains an attractive entry point. There is clearly a risk that disaster will return to the financial markets, but there is no greater risk of that happening than a crisis afflicting another industry. The paper says it would buy Shore now, watch the stock rise and collect the dividend. Buy.Aviation is not out of the woods but it is not getting worse, says Menzies, and airlines will want to shed more non-core businesses in the upturn. Even after yesterday's gains, the stock is attractive, says the Times.A punt on any AIM-listed healthcare group carries risk, but the Independent recommends LiDCO's hopes as a tentative buy.Dimension Data is well run and is weathering the storm. Yet, with a full valuation of ten times expected earnings in 2010, excluding cash, the risk looks to be on the downside, writes the TimesThe Telegraph says US dental firm Dentsply is operating in a long-term fundamental bull market and the shares remains a buy at this level.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.