Tuesday tips round-up: J Sainsbury, Phorm, Pace

7th Jul 2009 06:43

Analysts also point out that comparative sales figures for J Sainsbury are about to get tougher, which might take the sheen off its recent strong performance, says the Telegraph.Given Sainsbury's third place in the UK market, the work it needs to do to catch up with Tesco and continuing uncertainty about the economy and its shareholder base, the shares remain a hold. BT's decision to opt out of Phorm's controversial technology made no mention of the fierce reaction to its relationship with Phorm. Phorm insists it is close to some major international tie-ups, saying it is "engaged in more than 15 markets worldwide". But more proof is needed as it is fast burning through its resources and start-ups can only survive on a good idea for so long. Sell says the Telegraph.In most countries there is no such thing as terrestrial television and that set-top box maker Pace's products, or those of its rivals, are needed to watch anything at all. Only 3% of the world's television watchers do so in high definition, providing plenty of opportunities. The stock is pricey, but you get what you pay for, and Pace is a strong buy says the Independent.If you accept that the worst is over for property group St Modwen, it could be worth buying. After getting a rights issue away, and refinancing its debt, there are few concerns over whether the group will exist in the future. As such, a buy would be a one-way bet. But it may be better to wait to see if the green shoots survive the winter. Hold for now says the Independent.Extensive writedowns on the value of its land held for residential development ? more severe than those taken by housebuilders ? also give scope for future write-backs. But at 179p, up threefold from their March low, St Modwen shares have run far enough for now. Pass says the Times.Nickel miner Talvivaara's Eurozone base gives a clear advantage over rival miners in countries whose governments are less stable, or whose transport infrastucture is less developed. But the nickel market is in a state of transition: BHP Billiton has substantial idle capacity, while steelmakers are reducing the amount they require. It suggests that, at 333p, up 61% in the space of three months, the shares are best avoided until volume production begins says the Times.Contractor Ashley House is reliant on the NHS. The two main political parties are engaged in a war of words over which will cut public spending least, but cuts do seem inevitable. The firm says its area of expertise, primary health care, is set to be protected most, and therefore the group is more resilient to public-sector cutbacks. Tentative buy says the Independent.Uncertainty over government spending commitments and the timing of an election may weigh, but at 80p, or six times current-year earnings, Ashley shares are worth buying on weakness adds 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.