Tuesday tips round-up: Carphone Warehouse, Kazakhmys, WPP

27th Apr 2010 06:36

Carphone Warehouse trades on 17.2 times 2011 forecast earnings, which looks high enough. But with the US venture poised for a break-out and continuing good numbers in Europe, it could be argued the company is not as expensive as it appears to be. Buy says the Independent.The stars are aligned for miners such as Kazakhmys and, trading on a 2010 forecast multiple of 7.7 times, the group's shares are still priced at a huge 30% discount to the rest of the buoyant copper sector. The dividend yield, at a nudge over 1%, is poor, and any problems with the copper market will hit undoubtedly hit Kazakhmys hard. Nonetheless, buy says the Independent.Sales are picking up at housebuilder Redrow, which has a substantial landbank and expects to complete 2,500 transactions by the full year. In fact, the shares trade at a discount of about 25% to the value of that bank. It is cheaper that most rivals and with the sector historically trading at 150% of book, buy says the Independent.Speaking at a media conference in London on Monday, Sir Martin Sorrell, chief executive of advertising giant WPP, reiterated his view that advertising budgets will be flat in 2010. The shares have bounced more than 90% since their low last year and are trading on a December 2010 earnings multiple of 14.1, falling to 12.7 next year, which looks pretty full. A hold, but there are better places to put new money, such as companies with higher yields, the Telegraph reports.Hargreaves Services still seems interested in UK Coal despite its rival's awful results yesterday. The Telegraph suggests the full purchase of UK Coal by Hargreaves would not be in the company's interest. Although Hargreaves has built itself by acquisition, UK Coal may be too large a pill to swallow. Trading on a May 2010 multiple of 7.9 falling to 6.8%, Hargreaves shares offer good value, but the Telegraph wants the UK Coal situation resolved sooner rather than later.Shares in Glasgow-based Weir Group surged 9% to a record high after it said that full-year profits should be about £220m ? or £30m higher than forecast. At £10.17, up 81p, or 14 times upgraded 2010 earnings and net debt a negligible £119 million, the shares remain a solid hold says the Times.John Menzies was one of the obvious losers from a week-long closure of Europe's airspace by volcanic ash. Menzies's traditional trade ? newspaper and magazine distribution ? continues to perform in line with forecasts, At 387p, up 3½p, or eight times earnings, hold on says the Times.An exposure to heavy oil has weighed on Nautical Petroleum's shares. The AIM-listed explorer, which has stakes in two North Sea viscous oilfields, has underperformed the stock market by more than one fifth over the past year. Nautical has an unusually busy North Sea drilling schedule over the next few months, which could serve to highlight the potential of its portfolio. At 64p, this is a risky buy suggests the Times.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.