Tuesday tips round-up: Mitie, ITE, Kier

18th May 2010 06:44

Net debt of £87m gives outsourcer Mitie plenty of scope to pursue more acquisitions ? a topic on which it is making bullish noises. It is also taking its first tentative steps into continental Europe. At 238¼p, up 8¼p, or 12 times current-year earnings, Mitie has the longer-term potential to secure the sort of mid to high-teens multiple enjoyed by Serco or Capita, its FTSE 100 peers. Hold says the Times.ITE Group has provided further evidence of a pick-up in business-to-business media stocks. The FTSE 250 emerging markets exhibitions organiser yesterday reported an improvement in "sentiment" in its markets, with local exhibitors returning to its events, especially in Moscow. The investment case for ITE rests on a cyclical pick-up in sales. At 146½p, the shares trade at 12 times earnings once ITE's £29.7 million of cash is stripped out and provide a secure 4% dividend yield. Buy on weakness says the Times.ITE the shares have risen 17% this year, and according to brokers trade on 10 times full-year earnings before interest, taxation, depreciation and amortisation. It could be a growth story in 2011, but the Independent would like to see a bit more evidence before diving in, so just hold for now.There are green shoots at Big Yellow Group ? at least as far as the dividend is concerned. Yesterday, the self-storage developer reinstated its payout sooner than expected. The recent pick-up in housing transactions is also encouraging given that 57% of its customers are linked to property moves. At 322p, up 14p, the shares trade at a 34 per discount to forecast net asset value, nearly twice as great as the wider property sector. However, await stronger signs on occupancy before buying in says the Times.Contractor Keir reported a healthy order book and a strong net cash position yesterday. The news on the construction order book was particularly pleasing, with the company saying that it had secured more than 80% targeted construction orders for 2011, putting it slightly ahead of the position last year. Buy says the Independent.SVG is currently an investment trust which invests most of its money in funds run by Permira, one of the blue chips among the private equity world. SVG sees real signs of economic recovery, which should filter through to portfolio companies. Brokers suggests net asset value per share at 220p to 230p, which leaves the shares trading at a very substantial discount. Buy 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.