Tuesday tips round-up: Robert Wiseman, Lonmin, Segro

16th Nov 2010 06:49

Yesterday, Robert Wiseman, the milk producer, which counts Tesco, Sainsbury's and the Co-operative Group among its customers, reiterated that it faced a "period of intense competition" which will inevitably squeeze margins as it churned out a 2.7% fall in pre-tax profits to £21m for the six months to 2 October.Wiseman's shares trade on a rather modest multiple of 8.8 times 2011 forecast earnings, with the stock near a 12-month low after a recent battering. Life is not going to get much easier for the company anytime soon but whatever the general economic climate, people are unlikely to stop buying milk. So, on balance, there is a case for keeping hold of the shares for the moment says the Independent.Wiseman shares yield 5.5% going forward and trade on about nine times this year's earnings. An attractive enough return, but no other reason to chase, adds the Times.Platinum miner Lonmin still faces certain issues, but further likely gains in platinum prices should help underpin Lonmin's performance and the share price, which, though ahead of its June low, remains below levels seen at the beginning of this year. This is no candidate for a sell, so keep holding says the Independent.Yesterday's 4% jump in the share price puts Lonmin on about 18 times this year's earnings. Up with events, then, in a sector that has had a good run over the past couple of months, adds the Times.Property group Segro is fortunate in having 83% of its assets, by value, in London and the South East, where the market has proven to be remarkably resilient, at least by contrast with the rest of the country. Rental levels probably are now where they were at the start of 2009. Brokers have the shares on a 15% discount to forecast end-year net assets and offering a 5.1% dividend yield. Hold says the Times.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.