Wednesday newspaper tips: What to do with Wolseley

30th Sep 2015 10:49

(ShareCast News) - To sell or not to sell - that's the question when it comes to Wolseley according to Wednesday's newspaper share tips.Questor at The Telegraph reckons investors did the right thing yesterday. Despite an increase in sales and a £300m share buy-back, fears of a slowdown in the US and a flat market in the UK sent the shares tumbling on Tuesday and Questor isn't confident about the company's future and advised traders to sell. "The shares, trading on 16 times forecast earnings, seem to be pricing in too rosy a picture about future growth in profits."But over at The Times, Tempus thinks yesterday's 523p fall was overdone and suggests it might be a good time to buy the shares. It highlighted that Wolseley is forecasting growth of 4% in the first half of the new financial year instead of 6%."It's not exactly the end of the world, is it?" Tempus quipped."The shares have outperformed the market in recent weeks and have not suffered the markdowns noticeable elsewhere, which may have something to do with it."Boohoo.com is also in Tempus' sights. It said the 35% rise in revenue is something like what attracted investors initially to invest, but the shares sell on more than 30 times' earnings."I find this hard to justify even at the present growth rate, because a "buy" would require the investor to take a very long-term view."It said it couldn't justify the earnings multiple, and advised investors to avoid for now.