Tuesday tips round-up: Inmarsat, Bovis, Hiscox...

9th Nov 2010 06:40

Yesterday's third-quarter results from satellite group Inmarsat showed better than expected earnings as growth in aeronautical services, and an uptick in maritime services, boosting the bottom line. At 22 times forward earnings, Inmarsat's valuation has eased a little and the growth potential merits a premium, so buy says the Independent.Trading on 115% of the value of its existing policies, Hiscox isn't the cheapest, of the quoted underwriters although it offers far better value than Royal & SunAlliance (on 130%). At 4.7%, however, Hiscox's forecast yield is worth having and may grow. Hiscox is also a company with stable, high-quality managers who have a great track record. Buy says the Independent.Bovis Homes expects to sell more homes in 2011 than this year. It has cash in the bank and land is relatively cheap. The problem is that sentiment, which is worsening daily. The feared "double dip" in property is already well under way and the Financial Services Authority plans to stop millions of people from getting mortgages. It will get worse before it gets better. Sell for now, but look again in the new year says the Independent.Bovis shares have come off since the spring but still sell on an astronomical p/e ratio. More relevant is a 35% discount to net assets, while its strong market position is also attractive. But further progress, given the constraints on the sector as a whole, looks limited adds the Times.Security giant G4S's rate of acquisitions has slowed, but it has strong cashflow and enough firepower to add further bolt-ons. It also has exposure to the growth market of airport security. The shares change hands on about 12 times' this year's earnings. Worth holding for further growth 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.