Tuesday tips round-up: Rexam, RWS, Weir

12th Apr 2011 06:28

The packaging company Rexam highlighted the scale of its ambition in Brazil yesterday by unveiling plans for a new beverage plant in the country's northern region. Brazil is just one part of the recovery story at Rexam, which has around a 100 plants in more than 20 countries, following a slump during the recession. We think this recovery story still has legs and, coupled with the affordable valuation of under 11 times forward earnings, leaves ample scope for upside gains, says the Independent.RWS occupies a niche, searching and translating patents and providing other intellectual property-related services. RWS is clearly performing well, boasts a strong balance sheet with nearly £20m in net cash at the end of March and, in what we see as the clincher, trades on a thin enterprise multiple of under 4 times. Throw in the robust prospective yield of around 4 per cent, and we reckon this stock could be well worth a punt, says the Independent.Shale gas has enormous potential as a source of energy for the future. This presents an enormous opportunity for makers of hydraulic equipment, such as Weir Group. Weir shares are trading on a December 2010 earnings multiple of 15.7 times, falling to 14.3 next year. Buy, says the Telegraph.Most emerging markets have had a shaky start to 2011, as concerns over inflation mount. India was no exception. But funds will continue to flow into markets like India, despite the inflation issue. JP Morgan Investment Trust invests in major Indian companies. The Indian growth story is based on increasing demand from growing wealth within the country rather than growth through exports. Buy, says the Telegraph. 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.