Tuesday tips round-up: UK Coal, Centamin Egypt, H&T

27th Oct 2009 06:02

Britain's largest coal miner gave a sombre update yesterday with the news of another death at one of its mines. The fatality at its Kellingley mine has halted production for a week. UK Coal also has more than 40,000 acres of land, where it used to have working mines. Much of the land is agricultural, which is expected to double in value in the next five years. The company remains confident that development of the land should also coincide with an upturn in the property cycle. Investors are likely well and truly fed up with the stock, but should continue to hold on if they have lasted this long, says the Telegraph. The Independent prefers some of the bigger international miners, but thinks there is still potential for profit in the Yorkshire hills and, while UK Coal continues to look speculative, investors that buy now could do very nicely indeed.Centamin Egypt shares have rocketed up by 13pc since last Wednesday (even after falling back slightly yesterday). A bid is very likely. Centamin controls one of the largest gold resources in Africa not held by a major miner. Yesterday's rumour was that Canada's Eldorado is stalking the company. AngloGold Ashanti is perhaps a more likely bet. Any price is likely to be north of 150p a share, valuing the company at more than £1.5bn. Hold on for further gains, reckons the Telegraph. One beneficiary of the gold rush is H&T Group. The pawnbroker said yesterday that it was trading "well ahead" of market expectations. The move into the gold market is more about short-term opportunism than long-term gain, and management admitted as much yesterday by keeping its profits forecasts for 2010 intact while raising 2009 predictions. It is trading at about ten times 2009 earnings, which seems close to its potential peak. Hold says the Times. Those who have ridden this pony up have done well, says the Independent, but we are sceptical over whether it will be able to keep up the pace over the next 12 months. Keep the gold and sell the shares, it says.Private-label products have not performed quite as well as expected in the past year, despite the recession. While they have gained market share in Europe and America, a 5 per cent shift in Europe is not the stuff of dreams. Consumers still seem to be surprisingly brand-aware. The performance of McBride, the European private-label household goods supplier, depends on raw material prices and its share price has almost doubled this year already. The Times says hold. Investors in Scotty, the video communications group which issued interim results yesterday, have endured a bumpy ride of late. So is it worth a punt? Profits have been climbing, but the probable public spending cuts - both in the UK and elsewhere - pose a threat to Scotty, which focuses on the government and defence markets. In short, while the company seems to be on the right track and the shares remain well off their highs, the risks weigh against the Buy case. The Independent says hold. 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.