Tuesday tips round-up: WS Atkins, Great Portland, William Sinclair...

13th Sep 2011 06:52

The last time we looked at WS Atkins, we decided to buy, reasoning that the combination of what was a thin valuation and the engineering group's sensible strategy of expanding its reach in the energy sector augured well, says the Investment Column in the Independent. Since then, however, markets have suffered a well-document slump as investors factored in the prospect of another slowdown in global growth. Nevertheless, the group's diversity and international reach means that Atkins is better placed to deal with any downturn than many other companies. Adding to this, there is the valuation, which has become thinner still. In fact, Atkins trades on around 7 times forward earnings. All the while, it yields well over 5 per cent. We see no reason to cut and run. Buy, says the Independent.Ongoing problems in the banking sector, compounded by national debt crises, have been weighing heavily on commercial property companies in recent months, writes the Questor column in the Telegraph. However, there are one or two areas of light in the gloom. Commercial property that is in the right area, with established management and a good development programme remains attractive to tenants and to lending banks. London, and particularly the West End, where the majority of Great Portland Estates property is held, remains attractive. The company added to its development portfolio on Monday, announcing the acquisition of a 2.3-acre site in the West End for £120m. It has also finalised a £132.7m joint venture to buy two office buildings on Gray's Inn Road on the edge of the City. It may be weighed down by macro-issues but this should be offset by its own performance and sector. Buy, recommends the Telegraph.Gardening is one of the country's main recreational activities but the market is fragmented and quite competitive, writes the Scotsman. That said, William Sinclair Holdings has approximately 25 per cent of the British market, which puts it in a strong position. Its interim figures, published at the beginning of June, saw sales revenue up 19 per cent and profits and earnings more than trebling, with a useful increase in the dividend. William Sinclair's shares, quoted on Aim, peaked at around 210p in June and, on current levels, could warrant further analysis, according to the Scotsman, which suggests to buy.When looking around for investment opportunities, Greece would hardly be the first stop in the current climate, says the Investment Column in the Independent. And while it may be Jersey-based and listed in London, there's no doubt where Hellenic Carriers' roots lie. The company is linked to Mantinia Shipping, which was founded in 1971 by the Greek shipping magnate Konstantinos Diamantis, and was built on his relationships with international and domestic oil companies. The AIM-listed group saw revenues fall from $30.6m in the first half of 2010 to $20.8m a year later. Net profits sank from $10m to $3.1m. The company blamed the "considerable downward pressure" on the dry bulk market this year, which is also feeling the effects of an oversupply of vessels which were ordered during the boom years. Sell, says the Independent.BCPlease 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.