Wednesday tips round-up: Oxford Instruments and easyJet

16th Nov 2011 07:16

The Times's Tempus column assesses Oxford Instruments. The firm specialises in equipment that can analyse material at the molecular level. Its products are often used to test food although as Tempus mentions, the company was also involved in making sure the soil at the Olympic site in East London was safe to build on.There is no doubt the firm has had an impressive few years. Since the beginning of 2009 it has actually seen its share price rise a staggering 505%. In 2011 to date it is up 37%. Its financial performance in the last quarter goes some way to explaining the dramatic increase in value this year. Revenues were up 41%, much of that in organic growth, while pre-tax profits are up by three quarters.With the firm's sights set firmly on expansion in to emerging markets, backed up a 53% increase in orders from China, Tempus believes Oxford Instruments is a buy.The Telegraph looks at the fortunes over the orange and white liveried budget airline easyJet. It has a relationship of Freudian dysfunction with its founder Sir Stelios Haji-Ioannou who says he will not support the re-election of the current board unless he gets higher dividends.Sir Stelio's argument is straightforward. He think easyJet has lots of spare money kicking around. Given that the firm produced pre-tax profits of £248m - a rise of 31.5% - some might be inclined to agree with him. Questor, however, points out easyJet needs to be careful with its cash as fuel bills will likely rocket over the next 12 months, perhaps to £1.14bn. Those fuel bills are making analysts nervous about profits in 2012, with some arguing they may fall. Despite the fact the shares are worth only 9.6 times annual earnings per share, Questor believes easyJet should be left well alone for now.BSPlease 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.