Wednesday tips round-up: Informa, Big Yellow, UK Mail

23rd May 2012 06:54

Questor in the Telegraph goes back in to bat for one of his tips of the year, publishing and events company Informa. Currently trading at just 8.9 times 2012 earnings and yielding five per cent the maths look good. The firm runs 9,000 conferences annually, from which it ought to be able to milk strong earnings, if the Eurozone crisis doesn't wipe us all out completely. Questor says buy.Tempus in the Times gives an interesting exposition of the business model behind the Big Yellow storage company. The firm takes the view that the only viable market in the UK is London and the south east. It won't be building any more warehouses in the near future and will simply be run for cash and dividends. The current yield is 6.7% and with a large number of new customers proving the demand is there, Big Yellow is a buy.UK Mail, which claims to be the biggest independent delivery service, currently provides a yield of 7.7% but faces concerns over competition from TNT - which is trialling a "final mile" service to rival UK Mail's partner Royal Mail. Plus, wholesale prices are going up. Trading at 11 times forward earnings, the shares carry too much risk for a buy says Tempus.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