Tuesday tips round-up: Kewill, Reckitt Benckiser, Brixton

23rd Jun 2009 06:43

Any punt on logistics software group Kewill would be risky, but given the discount to brokers' estimates of fair value, and the fact that the company increased its dividend as part of yesterday's full year results, the Independent could be tempted. There are also some tasty new contracts to disclose during this financial year and that that should push up the share price. Buy.At 71p, or seven times earnings, and a resilient Kewill boasting net cash and a sharply rising dividend, the attraction remains intact. Hold on adds the Times.Circle Oil shares have enjoyed a big spike in recent months, climbing nearly 80% since March, but there is more to come from the stock with increases in production expected to come online in Egypt and Morocco later this year. Buy says the Independent.Property group Brixton's bondholders fear a fire-sale of Brixton's best assets and cumbersome banking terms for the enlarged group. They are concerned that Segro would eventually hit new financial problems and are ready to table alternative proposals. But until concrete alternatives emerge, shareholders should back the Segro deal for fear of damaging consequences if no deal is struck, suggests the Telegraph. Reckitt Benckiser has reiterated its target of net revenue growth of 4% this year and net income growth of 8%-10%. Both of these targets are at constant exchange rates. The shares are trading on a December 2009 earnings multiple of 15.7 times, falling to 13.1 in 2010. The shares are a buy says the Telegraph.Gaming services group Netplay, which operates through a host of platforms, including live dealer offerings in betting shops and interactive betting on TV via Virgin Media, has made great strides in recent years. As the company gives more detail on agreements with new platforms, so the share price will benefit. Netplay is a good buy, but only at the right price. Wait for a little softening. Hold says the Independent.Insurer Brit's weighting towards liability insurance lines ? particularly to potential litigation against financial institutions for losses sustained in the credit crunch ? gives it a powerful reason to diversify, hence the offer for Chaucer. If its bid fails, shares in Brit should head higher in the short term. Meanwhile, backers of Chaucer might pick up 44p a share from another quarter. Reason to sit tight on both sides of the register says the Times.The prospect of a break-up of telecoms group Kcom remains. Its traditional business is highly cash-generative, while its managed services might prove attractive to consolidators, such as Xploite or Oakley Capital. At 28¾p, the shares are likely to pause for breath. However, with debt falling, profit forecasts starting to rise and the shares providing a 5.5% yield, patient investors should buy on weakness suggests 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.