Tuesday tips round-up: J Sainsbury, Velti, Helphire

15th Sep 2009 06:44

Potential clouds on the horizon for J Sainsbury could come from Tesco pushing the pricing button and Justin King - Sainsbury's chief executive who has initiated a turnaround since 2004 - jumping ship to the same role at M&S, although he has scotched such speculation. The shares have fallen marginally over the past year, but in the long-term Sainsbury's looks well-placed to benefit from freer spending among core customers once the recession fades. Buy says the Independent.Velti was in the first wave of mobile advertising companies to deliver marketing and technology for companies including mobile operators Vodafone and Orange, ad agencies, and brands including Coca Cola and Honda. With advertisers keen to find new ways of exploiting mobiles and a 2010 price-to-earnings ratio of almost six times, this looks like good value. Buy says the Independent.Although Antisoma is a loss-making biotechnology group, it has a lot of things going for it which make it more than a gamble. The group is fully funded until mid-2011, it has a number of potential treatments at a late stage in their development and it has a major player in Novartis on its side. Shares in the group are a speculative buy says the Telegraph.Antisoma's appeal is that its cash will see it through until 2011, by which time its commercial prospects will be clear. For now, at 28p a share, the recent improvement in sentiment on American biotech stocks ? typically a lead indicator for their European counterparts ? should put a floor under the shares. Hold adds the Times.Recovery from recession, however slow, will bring relief for beleaguered Helphire, the supplier of replacement cars to drivers involved in no fault accidents. The bigger concern is the extent to which credit hire, the niche Helphire pioneered, can still be considered a growth industry, given its greater take-up since the 2001 downturn, and the willingness of the likes of Acromas to pursue alternative means of settling claims. At 36½p, or 14 times earnings, avoid says the Times.Plans by by Jisco, of China, International Ferro Metals' biggest customer and 29% shareholder, to double steel production in 2010 underpin hopes of a return to profitability in the current financial year. IFM also has funding from Bank of China. That leaves the direction of ferrochrome prices ? the contractual settlement of those for the fourth quarter of 2009 is due within weeks ? as the biggest short-term uncertainty. However, 58½p, or 10 times 2011 earnings, feels high enough for now. 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.