Wednesday tips round-up: 888, Gem Diamonds, Avocet

23rd Dec 2009 06:33

The acquisition yesterday by 888 Holdings of Wink Online Bingo is not huge in the context of the internet gambling operator's £400m market capitalisation.But it is important, nevertheless, in that it significantly enhances the company's presence in the fastest-growing segment of the online gambling market, the Times says. Separately, 888 reported that its trading in the fourth quarter remained strong, showing growth of about 8% compared with the third quarter and hinted it could once again have a US presence by the end of next year. At 110¾p, or 19 times 2010 earnings, hold.The box may be blue but the stone inside could be yellow. That's the increasing likelihood after yesterday's agreement between Gem Diamonds and Tiffany & Co, under which the fully listed miner will supply the retailer's gem sourcing and polishing offshoot with fancy yellow diamonds from its Ellendale site in Western Australia. With most indicators from American and Asian diamond retailers getting steadily better and the $100 million of cash on Gem's balance sheet providing the prospect of maiden dividends or share buybacks, hold on at 210¾p says the Times.Avocet Mining has failed to fly. The gold price has risen by one third over the past two years, but shares in the AIM-listed goldminer have moved in the opposite direction ? down by nearly one half. So, yesterday's disclosure that the company has poured the first gold from its recently acquired Inata mine in Burkina Faso a month ahead of schedule was taken well. The combination of falling costs, sharply rising production, and Avocet's steep discount to its peers after past disappointments, makes the shares a buy at 93¼p suggests 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.