Wednesday tips round-up: Northern Foods, Mouchel, Easyjet

7th Oct 2009 06:48

Northern Foods shares are trading on a March 2010 earnings multiple of 11.1 times, falling to 9.8 times. This appears to be a comfortable rating in line with its historical averages. The shares are not one to own if you are seeking significant capital appreciation, but for investors looking for a good dividend stream, Northern Foods shares are one to own says the Telegraph.At least Northern Foods' dividend looks secure, but this does not justify a rich share price of 67p, nearly 11 times last year's earnings. Sell argues the Times.Contractor Mouchel shares are trading on a July 2010 earnings multiple of 9 times, falling to 8.8 times in 2011. This is a discount to the sector of about 30%. However, a company's rating always takes some time to recover from a profit warning and there are continuing concerns about future government spending. Hold says the Telegraph. Chloride shares trade on nearly 15 times last year's earnings and up by a fifth since the start of September but now is not the time to buy. Longer term, the transformation of Indian and Chinese family firms into global businesses will drive demand for guaranteed power supplies, so patient investors should hold on for a global recovery or an eventual bid says the Times.Airline Easyjet shares have performed very strongly over the past few weeks and now sit at 59 times this year's forecast earnings, but that falls to 12.9 times next year's when earnings are expected to recover with the economy. That still compares favourably to Ryanair at 14 times. There is enough in the fuel tank to make these shares worth holding says the Independent.Recent results have cast a pall over the sector but that could present an interesting buying opportunity. William Hill is trading at just 8.5 times its full-year 2009 earnings, which is undemanding to say the least. The 4.5% prospective yield is stable and Hill's debt, at just two times earnings before interest tax, depreciation and amortisation is low. Buy says the Independent.Stock market conditions are stabilising and bringing in more customers for derivatives trading software specialist FFastfill. Revenues from the software services business are still growing and analysts expect increases in recurring revenues and a lift in profit margins as the business builds. Analysts at FinnCap put the stock at 11.8 times 2010 earnings, before falling to 8.8 times the following year. It's worth a look, so buy says the Independent.Gulf Keystone yesterday became the latest Kurdish-focused oil explorer to announce a fresh discovery, in its Shaikan block, its second in two weeks as it presses ahead with an intensive drilling programme launched in April. While shares in Gulf Keystone have had an impressive run, there are now risks to the downside and now may be the time for investors to sit tight rather than load up further. Hold 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.