Tuesday tips round up: Ryanair, Weir and Telecity

8th Nov 2011 06:46

The Telegraph's Questor column sings the praises of ultra budget airline Ryanair. The most important metric for the airline industry is yield management, the Telegraph explains, this is making sure planes are as full as possible so capacity does not go to waste. In its results yesterday Ryanair upped its yield management guidance from 12% to 14%, a clear indicator of a well disciplined business.In addition Ryanair has become something of a cash generating machine, with a special dividend this year and 17.3% expected next year. Add to this a boost in passenger numbers which has offset increased operating costs (fuel up 37%) and Questor believes Ryanair is a stone dead buy.The Independent's Sharewatch column assesses Weir, the engineering company which makes equipment for extracting oil and gas. It had a bad day on the markets yesterday, closing 2% lower than Friday. The Independent argues this fall reflects market perception that commodity prices have plateaued which would naturally restrict Weir's earnings potential.However, the Indy is in full sticking-its-neck-out mode and suggests that the long term prospects for commodities is still rosy especially for extraction techniques like hydraulic fracturing, or fracking, in which Weir has a particular speciality. It is for that reason that the Indy says Weir is a buy.The Times Tempus column looks at data centre provider Telecity. The paper notes how expensive building data centres actually is, especially in cities where finding space and getting permission is tough. In addition they also require enormous amounts of power. However, Telecity is on track to double capacity by 2016 and once the centres are built the margins are high. With the firm expected to pay its first dividend since listing during the Summer and low debts there is a lot to be said for Telecity. The problem is shares are trading at 24 times earnings and even the expected dividend will be only around 1%. The Times thinks Telecity is well worth hanging on to but not quite worth a new purchase.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.