Tuesday tips round-up: Sirius Minerals, Elementis, Telefonica

23rd Jul 2013 06:42

York Potash developer Sirius Minerals saw its shares plunge last week after announcing the delay of the approval of its fertiliser mine near Whitby in North Yorkshire. The North York Moors National Park Authority (NYMNPA)is considering whether it should grant permission for the mine to go ahead as it is located within the boundaries of the national park. Its decision was expected in May but this was delayed after a number of objections were raised. The Telegraph's Questor said:"Ultimately, if approval is given, the shares will rally strongly. Then there is the question of funding for management to deal with but project approval will make it much easier to secure the financing. All of these setbacks have a cost in terms of the company's ultimate valuation and the prospect of revenues has moved farther off. Speculators may wish to 'buy' for the racier part of their portfolio but the official rating is now 'hold'."Elementis Chairman Bob Beeston has stepped down after almost seven years with he company. Under his leadership, Elementis pushed into Asia via the Deuchem and Yu Hong deals in 2008, before launching a foray into the American cosmetics market in 2009 with its takeover of Fancor, noted The Times' Tempus. Last year it expanded in Brazil after acquiring Watercryl Quimica, which strengthened its position in Latin America substantially. The share price has benefited from that strategy growing from 88p when Beeston was appointed to last night's closing price of 223.50p. Pre-tax profit has grown from $26m in 2006 to $141m in 2012. However, in its last set of results the group reported a slowdown in the third quarter. First-half results next week area also expected to show a decline in profit. Nevertheless few are predicting a drastic drop with Numis telling investors to 'buy' the stock which is valued at a lower rating than its peers.A merger between Telefónica's German business and E-Plus, the German mobile offshoot of Dutch telco KPN, looks to be on after a year of talks. The Financial Times' Lex column reckons the rationale is "as good as ever", as it would put together the number three and four players in the German mobile market, adding E-Plus's 21% subscriber market share to Telefónica Deutschland's 17%. A merged company would exceed slices taken by rivals T-Mobile (Deutsche Telekom) and Vodafone. Shares in KPN, Telefónica and Telefónica Deutschland rose late on Monday on speculation of a deal. However,the big question is whether a tie-up can win regulatory blessing and how long approval might take. Germany's 2014 spectrum auction could complicate matters and regulators are already confronting a cable market shift with Vodafone's proposed acquisition of Kabel Deutschland. Yet Lex believes investors should sit tight and hope.RDPlease 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.