Wednesday tips round-up: Google, Betfair, Rio Tinto

12th Sep 2012 07:06

The FT's Lex column is unequivocally positive on internet search king Google but begins by listing all the negatives. Google doesn't explain whether its various investments in things like mobile and YouTube actually make any money. The firm also has a 43bn-dollar cash mountain 'loafing moronically' on the balance sheet. Despite that it utterly dominates web and mobile search and its core advertising business is incredibly profitable. Trading at just 14 times next year's earnings Google is a buy.Tempus in The Times is cautious on gaming group Betfair which faces big changes to the European regulatory landscape. Despite a decent first quarter, aided by Euro 2012 the company has to contend with possible new German taxes, while Italy and Spain's attempts to legalise online gaming are actually hampering the so called 'grey market' offering. Trading on 14 times earnings, the stock is a hold.In The Telegraph, Questor still likes Rio Tinto which has been hammered by general gloominess on the mining sector and an increase in coal taxes in the Australian state of Queensland. But China is still approving huge infrastructure projects and the demographic shift to cities across the globe is a structural factor that will benefit Rio for years claims the column. 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.