Tuesday tips round-up: Randgold Resources, Informa, Spirent Communications

23rd Apr 2013 14:02

Rangold Resources is different from many of its rivals. For example, it was not built through acquisitions, the grade of its gold reserves is actually improving and it has a strong balance sheet. Furthermore, while the price of gold may yet have further to fall quantitative easing and the devaluation of currencies means that the "yellow metal" should not be written off yet. Then there is the possibility of some M and A, not that Randgold needs it to keep growing. In any case, and despite the company's presence in politically volatile regions - such as Mali or the Democratic Republic of Congo - the fact is that fund manager Blackrock has used recent weakness in its share price to go bottom fishing, Buy, says The Telegraph's Questor team. Specialist publisher Informa's performance improved in the last quarter and it is likely to meet full year forecasts for pre-tax profits in the £330m-plus area. In fact, the last quarter may prove to have been a trough in its fortunes. However, it also faces challenges, particularly in its professional and commercial information side. About 40% of that unit is made up of publications going into the pharmaceuticals industry, but the sector is in cost-cutting mode and the lack of big blockbuster drugs means there is less need for such information. Trading now at about 11 times' earnings much of the good news seems to be in the market already; "hold, or take some profits if so inclined," The Times's Tempus writes. Given the recent spate of warnings in the technology sector, it might seem right to be wary. However, the shares of some of these outfits, such as Spirent Communications', may now be offering a decent 'entry-point.' Thus, while a slowdown seems to have been taking place across various sub-sectors and geographies 4G networks will have to be built forthwith. In fact, a significant order has just been received from one big service provider. Then there are the company's large cash balances and the recent large falls in its share price. "For the brave, this looks like a decent buying opportunity," Tempus believes. ABPlease 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.