Wednesday tips round-up: Aggreko, Persimmon, Admiral

26th Aug 2009 06:41

At the Department of Energy and Climate Change, civil servants are wringing their hands about the looming energy shortage, but at temporary power supplier Aggreko, Rupert Soames, the chief executive, is rubbing his palms in anticipation of windfall profits. Even after the rise, the shares are not too expensive on a multiple of 11.3 times full-year earnings. And if you are worried about the lights going out, this is one to have, says the Times.The long-term markets in which Aggreko operates are structurally sound, says the Telegraph's Questor, but with a slowdown expected in the second half, the shares could mark time from here. For this reason, its stance on the shares is now hold.Persimmon's shared equity position rose to £47.2m in the six months to June, up from £19.8m. That puts Persimmon out of pocket and government funding for schemes such as Homebuy Direct is also under pressure. When funds run out, it will be back to square one for first-time buyers. Stay away, says the Times.Car insurer Admiral has strongly outperformed its peers in recent months, and on 19 times 2010 forecast earnings, its rating fully reflects Admiral's premium status. On that basis - and given the ongoing pressures it faces - it is difficult to recommend adding to a holding in Admiral. Some profit-taking was in evidence yesterday, but the shares remain a very solid hold, according to the Independent.The stock market has shrugged off rumours of its demise and snide comments that Punch Taverns, a big pub landlord, had become a "zombie" company, drained of value by its burdensome debts. At nearly seven times next year's earnings, the shares are no longer the bargain they were, but last orders remain some way off. Buy, says the Times.Setting up your own office from scratch, with all the attendant bills, is pricier than paying Regus to do the heavy lifting. Although it remains cautious on the outlook, its decision yesterday to hike its interim dividend by 33.3% is a sure sign of confidence. Buy, says the Independent.Five years after discovering the Mangla oil field in the north-west of India, Cairn Energy will commence production this week. Its share price should rise further as the Rajasthan resource base is exploited. Given its leverage, higher oil prices - a distinct prospect if a recovery takes root in the world economy - will only smooth the path upwards. Buy, says the Independent.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.