Tuesday tips round-up: Lonmin, Braemar Shipping, Diploma

11th May 2010 06:54

The latest difficulties at its flagship smelter, adjacent to its Marikana platinum project in South Africa, have taken the shine off Lonmin's efforts elsewhere. Yesterday's results confirm that the operational improvements in underground mining pushed through 18 months ago are taking effect, but at £17.82, or 16 times 2011 earnings, there is better value elsewhere, even so says the Times.Braemar Shipping's long-term attraction is that the link between world GDP growth and the volume of goods moved by sea is still intact. The international nature of ship broking ? the company has operations in South America, Asia and Australia ? should also provide insulation from a weak UK economy. At 426p, or eight times forward earnings and providing a solid 5.9% dividend yield, the shares are too low. Buy says the Times.The last thing that shareholders in Tribal Group want is another election. Shares in this small-cap consultancy ? which draws 95% of its sales from the public sector ? tumbled last autumn when it warned of a slower pace of government procurement in the run-up to the poll. At 77p, or less than six times 2010 earnings, fears of post-election cutbacks are largely priced in, while the dividend provides a 6.3 % yield. Hold says the Times.The Telegraph is is a bull of diamonds, as there have been no major mine discoveries for decades. The assets owned by Gem Diamonds are superb but, after such as strong recovery and with markets remaining volatile, a hold rating is more now appropriate.Everything appears to be going well at components distributor Diploma and it should continue to make solid and steady progress. However, after such a large share price jump over the past few months and with market uncertainty still at the forefront of investors' minds, the shares are now a hold says the Telegraph.Building contractor Interserve trades on a shockingly thin multiple of 5.3 times broker estimates for the full year. Interserve also offers a yield of well over 8%. Interserve is being unfairly overlooked. Keep buying says the Independent.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.