Tuesday tips round-up: Wolfson, Cohort, British Land

28th Jun 2011 06:28

Chip group Wolfson Microelectronics said, ahead of the interim figures on July 25, that second-quarter revenues would be at the bottom end of forecasts of $37m (£23m) to $39m and that revenues would grow during 2011 by 10% to 20%, against earlier market forecasts of about 30%. Various unnamed customers have decided to rein back on production of new tablet PCs because of the uncertainty over consumer spending. Wolfson is not saying which, but one of the products will be BlackBerry's PlayBook tablet, which has appeared to mixed reviews. On below 20 times next year's earnings, the current price could be regarded as an attractive entry point. But beware that share price volatility and be aware that yesterday's shock is unlikely to be the last for the sector, and for Wolfson shares themselves, says the Times.The Independent says that Apple's clout in the market for both smartphones and tablets has made life uncomfortable for some of Wolfson's customers, which have been hit by poor sales and delays. These have fed through to Wolfson. We'd like to give Wolfson a break, as its technology is good and it could be that the shares are cheap after yesterday's fall, particularly if its customers find a way of taking a bite out of Apple's dominance of the market. But we're not convinced, the paper says.Cohort provides high-tech systems and services, mainly to the defence industry and with more than two thirds of these to the Ministry of Defence. One of three divisions, serving the naval and space sectors, suffered project delays and lost revenues and profits, while the company was caught up in the concern over defence spending cuts. The shares sell on less than seven times' earnings. Cohort suffers from the classic small company discount but could be set for further advances once the improvements carried out are properly appreciated, says the Times.The revelation this weekend that British Land is looking to raise money via the US private placement bond market is unquestionably positive. The company is also strong in the market for offices, which are booming, particularly in London. But we are still cautious about retail. So, while the growth in offices should provide support, and although the stock boasts a prospective yield of well over 4% we do not feel confident enough to add it to our portfolio, says the Independent.There were no ugly surprises in Cluff Gold's update yesterday, with the miner's chairman, Algy Cluff, confirming that the company's performance had been "satisfactory". Despite rising gold prices, its shares have recently proved weak, partly because of the suspension of operations at its Angovia mine in the Ivory Coast as a result of the violence in the country. Given the update, we think the weakness presents an opportunity to wade in, says the Independent.Airlines are exposed to erratic fuel costs and economic cycles, not to mention mother nature in the form of erupting volcanoes. Still, Flybe could be worth a look. It came to the market in December at 320p and its share price trajectory, if it were an aircraft, would be causing considerable alarm for its passengers. At current levels, the shares now trade on a prospective price-to-earnings ratio of around seven and, as European business activity picks up, so should passenger volumes; this element represents some 50% of its traffic. Buy, says the Scotsman.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.