Wednesday tips round-up: Aveva, Holidaybreak, Albemarle & Bond

27th May 2009 06:41

Engineering software group Aveva is a good, solid group and those worried about keeping their equity safe should consider the company a decent punt. For that reason the Independent is still a buyer though it cautions that the gains seen over the last few months may not be repeated. Buy.Aveva is a global leader in its software niche and has an excellent track record of cash conversion and a very strong balance sheet. While we can be pretty certain the worldwide thirst for power will continue whatever the state of the economy, the future state of shipbuilding is harder to predict. Hold adds the Telegraph.Irish convenience foods group Greencore issued half-year results yesterday, with earnings down 18% and operating profits off 11.7% at €31.4m (£28m) hit by currency movements. On a constant currency basis, both the group's main arms, convenience foods and ingredients, saw profit gains. Hold for now says the Independent.Specialist holiday company Holidaybreak trades at a discount to its peer group, But the Independent suggests waiting to see just how resilient the sector is in the all-important second half of the year. Hold.Debt is still an issue, despite the recent refinancing, and analysts believe that an equity fundraising is possible, if only to take advantage of the plethora of acquisition opportunities. At 293½p, or seven times earnings, Holidaybreak shares - which have more than doubled since October - are up with events. Pass says the Times.Home maintenance group Homeserve yesterday unveiled the £24m purchase of Société Française de Garantie (SFG), a French provider of extended warranties for electrical appliances. Once SFG's £7m of cash is stripped out, the purchase price represents a reasonable multiple of seven times last year's pre-tax profits. Even so, at £13.69, up 21p, or 13 times next year's earnings, await further international progress before buying back in says the Times.Those three golden balls outside Albemarle & Bond's stores are not just for show: the yellow metal has become an increasingly important moneyspinner for Britain's biggest quoted pawnbroker. At 214p, up 18½p, or ten times next year's earnings, it is well-run and, at 114 stores, has plenty of room to grow. Hold says the Times.Mothercare is well-run, with a strong management team and good growth prospects. It might seem a "steady-as-she-goes" company but in the current climate this is exactly what investors should be after. The chain should also benefit from the fact that despite the recession, families tend to keep spending on their offspring after they have pulled back spending on themselves. This means that it should prove resilient in the current downturn. Buy says the Telegraph. 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.