Wednesday tips round-up: Compass, Moss Bros, Close Brothers

30th Sep 2009 06:45

Caterer Compass shares trade on a 2009 price earnings rating of 12.7 times, and offering a dividend yield of 3.7%, there are certainly better value stocks around, but Compass is a core holding; an investment to add to the portfolio and not worry about. Investors should take the chance to stock up. Buy says the Independent.The Times adds that only 45% of the $150bn (£95bn) a year "captive" catering market has been outsourced so far, and that figure should rise given budgetary pressures in the public sector. With economic recovery also promising to provide momentum to Compass's more cyclical half, the shares, at 372¼p, should continue to head the right way. Buy.Yesterday, Moss Bros, the menswear retailer, best-known for its Moss fascia, posted a better-than-expected loss of £3m for the six months to 1 August, alongside a continued improvement in sales in the first eight weeks of the second half. The City still expects Moss Bros to post a pre-tax loss - albeit at an improved rate - for each year to January 2012. But, overall, investors should treat Moss Bros like a reliable suit and hang on to it. Hold says the Independent.Having sold Close Brother's corporate finance division, the task of Preben Prebensen, the new chief executive, is to expand asset management, which will further raise the company's exposure to stock market recovery. At 793p, or 15 times earnings, a conservative banking model and the weakened state of its rivals are reasons to hold on says the Times.Enterprise Inns's debt burden of nearly £3.6bn remains too high and the threat of regulatory action against the tied pub business model (an OFT report is due next month) is unhelpful. At 133.6p, or five times current year earnings, the shares are high enough for now. Pass says the Times. Vodafone came out yesterday with the news that it has secured the rights to sell the iPhone in the UK and Ireland, just a day after Orange broke O2's exclusive contract with Apple. The shares inexplicably fell further than the sector as a whole yesterday, presenting another buying opportunity, the Telegraph reports.Support services group Mitie, which yesterday issued a trading update saying that everything was in line, is likely to cash in next year when public sector budgets are re-written and every mandarin in Whitehall looks for ways of saving money. Undoubtedly there are stocks that offer better returns, but Mitie investors will enjoy strong growth over the next 12 months. 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.