Tuesday tips round-up: Fidessa, 888, Senior

4th Aug 2009 06:44

Trading systems software specialist Fidessa posted impressive half year numbers yesterday, saying that revenues, profits and earnings per share were all up, and while the second half of the year will not be quite as impressive, the future is bright. With strong recurring revenues and a move towards globalised trading, the investment case is strong, but the rating is high and for now a hold says the Independent.Fidessa benefited substantially after the introduction of the Market in Financial Instruments Directive (MiFID) in Europe and Regulation NMS in the United States as more trading platforms such as Turquoise were set up. It may not reap quite the same rewards from the next round of regulation. Still, it benefits every time a small change to the rules necessitates an upgrade of its existing software. Hold for now, buy on future weakness says the Times.Online gamer 888 moved up as the market focused on the quarter-on-quarter performance, which showed a 7% increase. This was encouraging after two consecutive quarter-on-quarter falls, while the number of players has also increased, albeit spend per head remains a challenge. Although the economic downturn continues to hit consumer spending on gambling, 888's efforts, allied to consolidation moves in the sector, make the shares worth holding says the Times.Ultra Electronics, the FTSE 250 group that makes a range of electronic systems used by the defence industry, issued its first half numbers yesterday saying that pre-tax profits were up 32% and that the order book had risen by 19%. In Ultra's case, we reckon the doubts over US defence spending are misplaced and reckon the punt is well worth it, not least because of the dividend hike. We would be buyers of the stock. Buy says the Independent.Yesterday's interim results from XP Power were good, but after a spike of 14.9 per cent yesterday, and after a jump of nearly 75% in the last six months, there is no hurry to buy at this level. Hold says the Independent.Senior, the aerospace engineer, should make about $800,000 (£472,000) from each Boeing Dreamliner. Current orders are for about 850 aircraft and Boeing hopes to make ten Dreamliners a month once they are off the ground. Senior will not collapse without revenues from the Dreamliner, but avid followers of the company are watching Boeing's every move with bated breath. If you think the Dreamliner will go into mass production soon, Senior is a buy 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.