Wednesday tips round-up: Northern Foods, Cranswick, DTZ

14th Jul 2010 07:02

Northern Foods expects trading to remain challenging, which might be stating the obvious, but it says it is prepared for further squeezes on consumer spending, having already expanded the range of lower-value products it provides to Tesco, in particular. The shares sell on about seven times' this year's profits, which looks cheap given the 9.5% yield. But uncertainties over that dividend will continue says the Times.Cranswick is relying on the trend towards pork as a cheap and healthy form of protein and towards its premium sausages, again seen as good value for stretched family budgets. A Jamie Oliver range is just appearing in the shops. Companies such as Cranswick are inevitably reliant on what used to be called the pork cycle. The shares sell on about 12 times' this year's earnings. Not cheap, but worth picking up on weakness, says the Times.Cranswick shares are a buy adds the Independent, not only because it appears to have genuine momentum, but also as the company has a strong track record of growing its dividend and earnings per share.Property advisory group DTZ yesterday reported a return to full-year profits, with analysts predicting that profits before tax would rise to £11m in 2011, before jumping to £20m the year after. DTZ says that shareholder value will be better created by pumping funds into organic growth projects rather than through a final dividend. Avoid says the Independent.After another £26.5m in exceptionals, property services group DTZ just crept into a £3.6m profit ahead of these. There is no dividend and little prospect of one this early in the cycle. Brokers have the shares on about nine times' this year's earnings. A brave recovery play says the Times.Kier is a FTSE 250 construction and support services group that has seen its shares hit hard in recent months by fears over the effect of public sector spending cuts. Two-thirds of Kier's construction business and three-quarters of its support services work comes from the public sector. Earnings forecasts should be revised higher after this week's update. The shares are yielding 5.8% and trading north of eight times projected earnings. Buy says the Telegraph.Like-for-like sales growth is expected to slow over the second half of the year as Domino's Pizza "annualises" its Two for Tuesday promotion. Also, high summer is not exactly the prime time to order a piping hot pizza. However, the fundamentals are strong and there is plenty more to come from Domino's.From where it is sitting it all looks rather tasty. Buy says the Telegraph.Indian Energy's full-year results, published yesterday, show revenues up by 94% to £2.21m, but losses after tax up by an even bigger 114% to £3.4m. Wind energy has huge potential in India. And there is likely good news ahead for Indian Energy. But the stock is still a risky choice for now and should be avoided. Avoid says the Independent.