Tuesday tips round-up: Barclays, AB Foods, Goals Soccer

8th Sep 2009 06:56

While Barclays was not immune to the effects of the credit crunch, it is clearly in much better shape than either Lloyds TSB or Royal Bank of Scotland, and has not yet had to call on the taxpayer for any cash.Brokers have Barclays on an adjusted multiple of just 5.3 times this year's forecast earnings, with a prospective yield of 1.4%. If the regulators allow it to continue on its path and the economic recovery strengthens, that looks rather cheap. Excepting HSBC, Barclays is the quality play among Britain's banks at the moment. So, while the risks have to be considered carefully, buy says teh Independent.Kofax, the computer software and hardware company which describes its business as providing "document driven business process automation solutions", blamed yesterday's full-year results on adverse economic conditions which worsened as the year progressed. With no dividend, predictions of mid-single digit revenue growth in the software business and flat revenues in the hardware business, a sell says the Independent.AB Food's unorthodox conjunction of fashion and cupboard staples make it a conglomerate oddity in a focused FTSE 100. However, the formula is working better than at any time in the company's recent history. At 845½p, or 14 times next year's earnings, hold on says the Times.Panmure Gordon has upgraded this year's earnings per share forecasts for AB Foods by 2% to 56p but forecast pre-tax profits of £708m in 2010 to give a modest increase to 60p. On a multiple of 15 times, yielding 2.4% the shares are worth holding says the Telegraph.Healthcare Locums' key advantage is scale: an international network that means it can bring in qualified staff from overseas when smaller operators struggle. At 207p, or ten times current-year earnings, and with the company set to become debt-free next year, hold on says the Times.Shares in Lupus have gained 32% since it emerged last week that Greg Hutchings, who was ousted as executive chairman in July amid a bank refinancing, had raised his stake to more than 10%. However, net debt is £120 million, and the outcome of the new board's strategic review unclear. At 25p, or three times broker Finncap's estimates of current-year earnings, this is only a buy for the brave says the Times.Recession? What recession? Yesterday's interim results suggest that the Aim-listed Goals Soccer Centres has scored again. Pre-tax profits grew by 5 per cent to £3.9m, while same-site sales were up 1%. At 14 times forecast full-year earnings and yielding 1%, the shares are not cheap, but the Independent is convinced. Buy. 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.