Tuesday tips round-up: Aberdeen and Greene King

30th Apr 2013 06:23

While Aberdeen's first-half report sparked a share-price surged to an 11-year high on Monday, the Financial Times' Lex column says that the asset manager is not without its problems.The Lex team said: "Top of the list is that it is looking increasingly unbalanced."Customers are pouring a lot of money into its equities business which specialises in emerging markets, but Aberdeen is finding it tough to find places to put it. Meanwhile, there were net outflows from all its other asset classes. The result is that the contribution from equities to total assets under management has now risen from 45% two years ago to 58%. "If emerging markets take a tumble, Aberdeen will be hurt," the FT warns.Lex said that this is one of the reasons why Aberdeen trades at a discount to the more diversified Schroders, and it will take a lot more acquisitions of specialists in private equity and high-yield debt to improve its balance.The Times' Tempus column has taken a "glass-half-full" approach to looking at pub operator Greene King in spite of a weak start to the 2013 calendar year in which like-for-like (LFL) sales slowed sharply.The company couldn't make headway in March as the freezing weather contrasted with a warm snap in the same month the year before - this was the only month in the financial year to the end of April that did not see LFL sales growth.Nevertheless, the column remained optimistic, highlighting the group's "advantages", such as a growing managed estate, ability to increase margins, strong food sales and a resurgent brewing business. Furthermore, the company is said to have the "financial firepower" to open 20-30 new managed pubs a year while "will provide the engine for further growth".However, with the shares trading at 12.6 times this year's earnings after a strong run over the last 12 months, the paper said that the stock is "fair value for a business so exposed to consumer spending patterns".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.BC