Tuesday tips round-up: Michael Page International, RM, Quindell

10th Jul 2012 06:56

Questor in the Telegraph is a fan of Quindell, an outsourcing company that cuts costs for the UK's major insurers. Should it meet its full-year guidance - and everything looks well on track for the company to do this - the shares look very cheap, Questor believes. Quindell's software and consultancy division closed the first half with 'new record level licence pipelines, agreed multiple new contracts and extensions across key markets and a range of geographies.' The company is currently valued at £151m and the shares are trading on a 2012 earnings multiple of 6.25 falling to just 3.75 in 2013. This looks cheap should the company continue to deliver, with the track record of founder Rob Terry suggesting there is a good chance of this happening.Tempus in The Times takes a look at Michael Page International, the FTSE 250 recruitment firm. The column makes the point that recruiters are very good at telling us where the economy is right now, not where it's going to go. Profits in the second quarter were ahead of the first by 1.6pc but significantly (6.6pc) behind the same period of 2011. Tempus thinks the chances are it will be a difficult third quarter as the UK and southern Europe remain troubled markets. The shares also trade at an at expensive 20 times earnings. The investment case for recruiters is when we hit rock bottom, after that, they usually rise. Tempus doesn't think we've hit rock bottom yet, avoid.Tempus rather likes RM, the school products supplier. After a tricky few years it is now focusing on what look like three sensible products: e-books, sign-on software for pupils and teachers working from home and parent and child software. Tempus also rates the boss of the firm, Martyn Ratcliffe, and it's Ratcliffe's track record with turnarounds at Sagentia an Microgen that lead Tempus to suggest RM as a "long term punt". Buy.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.BS