Tuesday tips round-up TUI Travel, RM, Travis Perkins

12th May 2009 06:39

The main doubt about TUI Travel is the intentions of TUI AG, its German 51% shareholder, which has talked about taking it private or swapping its debt for its continental assets. The uncertainty is unhelpful, but does not detract from the improving trading outlook. Hold says the Times.Brokers are forecasting earnings per share of about 13.9p for the current year for RM Group, the educational software and services provider. That puts the shares, up 9¼p at 151¼p yesterday, on a multiple of almost 11 times expected earnings. That's probably about right for a largely defensive stock with some reasonable growth prospects suggests the Times.Builders merchant Travis Perkins recent share price rise is truly remarkable in a market that its own chief executive admits could remain moribund for three years. The group has no significant overseas operations, so it is also particularly exposed to the parlous UK construction sector. Most analysts regard it as the best managed of its peers and yesterday's rights issue should remove any remaining fears about the balance sheet. But compared with a sector average of 9.7 times, its forward price/earnings ratio of 10.5 times now looks fully valued says the FT.Care home group Southern Cross has launched a two- year operational review, which aims to increase quality and thus the fees it can charge. It is a move in the right direction especially as the worst of the company's debt troubles now look resolved. The shares are on a forward p/e of about 6, a discount to Care UK, its competitor. But with a 40% rally since last October, investors should not count on similar increases in the coming year suggests the FT.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.