Wednesday tips round-up: IG, Oxford Instruments, Playtech

10th Jun 2009 06:54

Spreadbetter IG is a good way of getting exposure to equity volatility, without having to pick specific companies. With most financial stocks still considered too toxic for investors of sound mind, those that traditionally like the sector should add IG. Buy says the Independent.The Times adds that significantly, bad debts are now under control. Bad debts during the second half of the year are expected to be about 3% of revenues, most of which are associated with trading before its new credit system was implemented. The shares are trading on a May 2010 earnings multiple of just under 10 times and yielding an impressive 5.8%. Buy.Oxford Instruments produces hi-tech tools used for detecting the amount of lead in paint, among other things. Brokers suggests the share price will reach just 150p in the next 12 months compared with 137.5p currently so buying now seems to be a bit of a waste of time and, of course, money. There might well be a time to buy, but it is not yet. Avoid says the Independent.Oxford should continue to deliver its promised improvement in operating margins, now 6.3 per cent. And at 137½p, or less than ten times earnings, and yielding 6.1 per cent, the shares are cheap, given Oxford's strong intellectual property in what are long-term growth markets. Buy says the Times.Playtech develops software for gaming platforms. Last week the company unveiled a significant deal with Betfair, a leading industry player. On current forecasts, the shares are trading on a December 2009 earnings multiple of 11.5 times, falling to 9.6 times in 2010 and yielding 4.5%. There are exciting prospects for the group in the next two years, despite the current economic climate. Buy says the Telegraph.Stagecoach Theatre Arts expects to be profitable this year, despite fewer franchisees coming forward to add to its worldwide series of schools. Even so, as yesterday's undoubtedly positive update did not elicit any life in the stock, the Independent concludes the stock is already appropriately valued. Hold.UK income and growth trust Edinburgh Investment Trust is still the biggest of its kind. At 317¼p, the shares sit 5 per cent above NAV and offer a 6.4% yield. Edinburgh has other attractions. Since last September, it has been under new management, with the investment mandate having passed to Invesco Perpetual, whose Neil Woodford comes with one of the best track records in UK fund management. But as long as Edinburgh's premium to NAV persists, investors who seek safety would do better to back Perpetual through its unit trusts. Pass says the Times.Punch's sale of sale of 11 pubs to Greene King for £30.4m may, on its own, be small beer, but it is important in the context of the group's continuing asset disposal programme. It not only reinforces the inherent value tied up in Punch's pub estate, but also allows the group to buy back debt at well below face value. The trading outlook is also looking a little less bleak, helped by sunnier weather and the boost to consumers' disposable income from lower mortgage costs. At three times current-year earnings, hold on says the Times.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.