Wednesday tips round-up: Diploma, NBT, Norcros

22nd Dec 2010 06:32

Distribution group Diploma's latest significant acquisition, the C$25.5m (£16.1m) purchase of the Canadian healthcare products supplier Carsen Medical, supplies medical devices and products for endoscopy suites at hospitals and private clinics across Canada. The Canadian healthcare market is remarkably resilient. Diploma's shares have drifted a bit since the results and sell on about 13 times this year's earnings, which begins to look like good value, the Times says.Last week's purchase of French domain name producer Indom for €16.9m (£14.3m) looks like a good move. It makes NBT the leading provider of domain services to the French market and consolidates its leading position in Europe. This purchase is an ideal deployment of the company's cash balance - which should grow though 2011. Buy, says the Telegraph.Shower and ceramic floor and wall tiles company Norcros's stock is trading on a discount to its sector. Following a capital raising in 2009, the balance sheet has been strengthened and net debt has been reduced. Management has signaled confidence in the business outlook and has reinstated its dividend, with a prospective yield of over 3 per cent. As operating improvements become evident, the shares should strengthen. The Scotsman says buy.The Telegraph's Questor has always regarded a direct investment in soft commodity derivatives as a little too high octane for the average investor, since price moves can be swift and savage. That is why Questor recommended ETF Securities Agriculture in June 2009. It tracks a broad agricultural index, the Dow Jones-UBS agriculture sub-index, which is broken down in the graphic. Because of the inherent risks in soft commodities and their extreme volatility, this is not an investment on which to bet the farm. 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.