Tuesday tips round-up: Kentz Corp., Diploma

26th Mar 2013 06:50

Oil and gas engineering services group Kentz Corporation is on a solid foothold to expand. The latest figures from the company show that its backlog of orrders as of the end of February stood at 2.73bn dollars, up from 2.57bn dollars at the end of 2012. Given that the firm´s annual revenues are a rather more modest 1.56bn dollars, that is a significant sum. The firm is involved in three big liquefied natural gas projects in Australia; however, its workload is widely spread, with no over-reliance in on area. Trading at ten times´ earnings and with the market increasingly following the market, the shares look like good value, The Times´s Tempus says.Shares of diversified industrial and healthcare services group Diploma have done well since the start of last year, as the market implicitly recognised the company´s strong rate of growth, both organic and otherwise. Its seals division for the US construction and agricultural sectors is expected to show an inevitable small decline. As well, trading conditions in its industrial controls group - which has exposure to the Continent - are weak. Those negatives, which were flagged in the company´s latest trading statement, were not unexpected. Even so, selling on 16 times earnings the stock´s price looks high. Perhaps time to take some profits, Tempus writes. 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.AB