Tuesday tips round-up: Vodafone, Majestic Wine, Diageo...

14th Dec 2010 06:59

Vodafone seems to be in quite a good position. It is making a bet on the growth of smartphones, which seems sensible, and recently launched new tariffs that allow cheaper browsing while abroad. Analysts are backing revenues to grow and have the stock on a price of 8.7 times estimated full-year earnings for 2011, while the dividend is tipped from 5.3% to 7.16% two years later. Especially with recent weakness the stock is worth picking up. Buy says the Independent.International Personal Finance still has potential for growth through international expansion, exposure to growing emerging markets and economic recovery. So the 13.4 times forecast full-year earnings at which the shares trade isn't overly pricey. Hold says the Independent.Majestic Wine appears well-placed for a bumper Christmas. The 160-store retailer hasn't looked back since it halved its minimum purchase from 12 to six bottles in September 2009. The shares now trade on a forward earnings multiple of 18.7, times, a bit frothy really. But next year may not be as bad as some fear, and there are plans to increase the number of shops to 250. Hold says the Independent.It seems that hardly a day passes without Diageo being linked to another multibillion-pound takeover. A few weeks ago the rumour was that a £10bn buyout of its Moët Hennessy joint venture with LVMH was on the cards. Then last week the world's biggest drinks company was, in quick succession, tipped as a bidder for Fortune Brands of America's £6bn drinks business and Mey Içki of Turkey. The reality is that its balance sheet and cash generation are so strong that, if it came to it, it could comfortably swallow all three. Hold says the Times.Brokers argue that New Britain Palm Oil trades at a 25% discount to its international peers, which belies the fact that it is significantly more profitable than many of its rivals when prices are high ? likely to be the case for at least six months. That looks like good value. Add says the Times.A period of stable trading could see banknore printer De La Rue level out at about 820p, according to Bank of America Merrill Lynch, which would give it a rating of 14 times. Yet with hedge funds still on the share register, there could be choppy trading ahead and it would take a brave soul to buy at this level. Avoid for now says the Times.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.