Tuesday tips round-up: Domino's Pizza, Peter Hambro, SThree

21st Jul 2009 06:41

Domino's Pizza's announcement that it expects to beat the market's full-year profit expectations, after saying that interim profits were up 25%, is impressive, but increasingly the norm. While the stock is already looking pricey, there is not too much to hamper Domino's growth plans, and the extra cash that will it generate should be attractive to investors. Buy says the Independent.Domino's lifted the interim dividend to 3.5p and analysts expect a yield of around 3.2% this year. The shares are always highly rated and currently trade on around 16 times earnings. That looks cheap considering the quality of the business adds the Telegraph. Buy.After a tricky few months leading up to Christmas last year, gold miner Peter Hambro issued an upbeat half-year update yesterday, saying that gold production was up an impressive 54%, and that the second half of the year should be more impressive. The shares are cheap and there will also be pressure on the company to reinstate the dividend as soon as possible after such a positive update. Buy says the Independent.In the past, Peter Hambro's shares have been dragged down by concern over "Russian risk", and overly ambitious production targets, but it is on track to become the UK's largest gold producer. Buy says the Telegraph.Given Peter Hambro has taken 15 years to get two mines up and running, its target of reaching five in just over three years' time would appear to invite scepticism once more. At 626½p, up 58% this year, or 14 times 2009 earnings, there should be better times to buy suggests the Times.Derwent London owns a million square feet in Fitzrovia, an overlooked part of the West End that, lacking in shops and restaurants, should steadily benefit from piecemeal regeneration. Its W1 postcode is a powerful draw, as should be, in due course, the access to be provided by Crossrail. At 946½p, a 6 per cent discount to net asset value, and with £290m of undrawn banking facilities providing plenty of firepower, hold on says the Times.Recruiter SThree reported tepid first-half profit numbers yesterday, adding that permanent placements were down 34% in the first six months of the year. But the average permanent placement fee is up by 17.3% on the same period last year. Cash at £43.9m also underpins the dividend yield of 6.4%. Buy says the Independent.Although there are tentative signs of improvement in UK temporary staffing, continental Europe entered recession later, such that SThree's 54% of fee income from outside the UK could come under further pressure. At 17 times 2009 earnings, pass says 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.