Tuesday tips round-up: Standard Life and Electrocomponents

7th Feb 2012 06:59

In the Times, Tempus argues the bull case for banking group Standard Life. Like many financials it's had a tricky few months but has been rising since the autumn of 2011. The new automatic enrolment pension requirements and a potential ban on commissions for independent financial advisers puts Standard Life in a very strong position, says Tempus.With the management incentivised to boost profits, and the current market price not reflecting the target earnings figure, Tempus says buy.In the Telegraph, Questor sizes up Electrocomponents after having a word with the boss Ian Mason. The company is tied to the industrial cycle as orders go up for the electronic components it distributes when the global economy improves. There have been, as Questor says, a number of positive industrial production indicators from most parts of the world of late which should play into Electrocomponents' hands. The stock already trades at 12.1 times earnings with a yield of 5.1%. The problem is both the global economy and therefore Electrocomponents could go either way. It doesn't have an order book because orders are fulfilled within hours. With that lack of visibility, Questor says hold.BSPlease 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.