Wednesday tips round-up: Amec, Carillion, Autonomy...

2nd Feb 2011 06:47

Exploration and production spending by oil companies is expected to increase significantly in 2011 - with analysts predicting investment could rise by as much as a fifth. This is an opportunity for Amec.Any M&A activity could be a catalyst for the shares to outperform. The shares are trading on a December 2010 earnings multiple of 19.9 times, falling to 17.1 in 2011. Buy says the Telegraph.Carillion's management acted quickly when it was obvious that a slowdown was approaching and reduced its UK activity, especially in construction. The shares are trading on a December 2010 earnings multiple of 9.7 times, falling to 9.2 next year, which is a discount to peers. The yield is an attractive 4%. Buy says the Telegraph.Autonomy should not be a difficult company to understand. It sells sophisticated software that finds patterns in huge stores of data, for example allowing governments to track terrorists and marketing departments to be more efficient. The shares are on less than 20 times' this year's earnings and are a good long-term bet. But don't expect the ride to be an easy one says the Times.Tate & Lyle's past two years of cutting borrowings are past and the emphasis is on organic growth. The shares, up by a third since the end of August and driven in part by wild suggestions of a bid from Cargill, the huge US food combine, sell on more than 12 times' this year's earnings and are probably due some profit-taking, even though some bid potential remains, suggests the Times.If you can see the geotextiles made by Low & Bonar, they aren't doing their job. The company best known for its artificial playing surfaces, about 10% of the business these days, has a quarter of the business tied up in clever plastic meshes with uses in civil engineering such as lining for roads and railways, water containment and coastal defences. Brokers expects Low & Bonar to report pre-tax profits of £18.4m next Tuesday, which would put the shares on 12 times' last year's earnings. One to tuck away for future growth says the Times.Hikma, the Jordanian generic drug manufacturer is a leading player in the MENA - Middle East and North Africa - pharmaceutical market, with manufacturing facilities in both Egypt, where there has been unrest for days, and Jordan, which drew headlines of its own after the King sacked the government in the wake of protests over food prices and poor living conditions. Signs that the situation is getting worse could trigger further profit taking in this stock, which is up more than 50% since the beginning of last year. Sell says the Independent.Carpetright yesterday issued a profits warning on the same day that the Bank of England revealed mortgage approvals had hit a 21-month low. The two factors are related, as many people buy a new carpet when they move house. A hibernating consumer and a stagnant outlook for housing transactions means Carpetright has further to fall. Sell says the Independent.Quite a bit of Morson's business comes from the public sector. That has been hit hard by the Government's Strategic Defence and Security Review (SDSR). More cuts are on the way. Morson is not expensive at just 8.5 times this year's forecast earnings, with a prospective yield of 5%. Take profits 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.