Wednesday tips round up: Aviva, Morgan Crucible, TeleCity

9th May 2012 06:51

The Telegraph's Questor column opines on Aviva - anyone vaguely interested in the markets will have heard that the firm's Chief Executive, Andrew Moss, left yesterday after a shareholder rebellion over pay. The shares have underperformed for ages, despite numerous restructurings and the sell-off of Aviva's US business. One possible move, muses Questor, is the merger of Aviva with RSA Insurance. Questor has been burned after recommending Aviva as tip of the year in 2011 but sticks to his guns - you can see why, the yield is 8.6% and the shares trade on just 5.4 times earnings. BuyTempus in the Times likes Morgan Crucible, the engineering company with fingers in rather a lot of pies. It supplies military vehicles, makes insulation products for solar energy and produces crucibles for the manufacture of non-ferrous metals. Yesterday the stock sank like a stone (down 10%) and rather refreshingly Tempus says he has no idea why. But the shares now trade at just ten times 2012 earnings and with a pickup expected across several of its markets, Morgan Crucible is a buy.Tempus is slightly more cautious on the immensely successful TeleCity which dropped 4.7% yesterday, mainly on currency issues as much of its revenues come in euros and Swedish Krona (both falling against the pound). But TeleCity, thinks Tempus, has a solid business model: get money from selling capacity at its datacentres, then build more datacentres. With growth available in underdeveloped markets like Turkey, this is a "strong long-term hold" - although just worth mentioning that the shares are trading at 27 times forward earnings, so not quite a buy.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.BS