Tuesday tips round-up: Pace, Alliance Trust, Acal

20th Apr 2010 06:34

The concerns over set top box maker Pace are that its market will become steadily commoditised, subscribers will increasingly abandon pay-TV for free internet-based alternatives or that its industry's economics will be turned on its head by the likes of Apple, which, having tackled music, mobile telephony and publishing, is rumoured to be looking to take its first steps in television.Such fears explain why, despite sitting on £75m of cash and being forecast to deliver double-digit earnings growth, Pace, at 189¼p, trades at less than nine times current year earnings ? not dear for the biggest pure-play company on its patch. Buy on weakness says the Times.Small-cap electronics distributor Acal's pipeline of orders, a reliable guide to the next quarter's sales, are up by 20% year-on-year, against the 3% improvement reported in February. The case from here rests upon Acal consolidating this patch to secure further economies of scale. At 179½p, up 15½p, the shares trade at 20 times forecasts before yesterday's upgrades and yield 3.9%. Buy on weakness suggests the Independent.Alliance Trust's conservative style means it will never be the most exciting investment. However, its long-term direction ? lowering its weightings in the UK in favour of bigger positions in Asia ? remains sound. So, too, does its attraction as a low-cost savings vehicle whose portfolio holdings, as now, are not fully reflected in its share price. At 346½p, hold on says the Times. Kewill provides companies with software services to help track the products they send to customers, with its operations largely split into three. From a company that was stumbling around in the days after the dotcom bubble burst, Kewill has made itself more tightly focused under its chief executive, Paul Nichols. The bottom line is looking good and the shares should have further to go on a price of 14 times estimated full-year 2010 earnings. The shares are volatile but prospects look good. Keep buying says the Independent.GB helps help its clients to confirm your identity when you ring up to buy a product or service. It seems logical for companies to come knocking on GB's door for verification, and then to stick with it when looking at better targeting and working with customers who are telling the truth. Add to this the fact that GB offers a healthy dividend yield and trades on a multiple of just 7 times enterprise value to sales, it is a "buy" says the Independent.Investors in Gaming VC are basically taking a bet on whether the management can successfully deliver on their promises. Gaming VC's core CasinoClub business, in Germany, looks resilient enough, with various bits and pieces (including a substantial operation in South America) attached to it. This is still a risky play, though, so hold for now 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.