Wednesday tips round-up: Pearson, Tesco, Speedy Hire

27th Apr 2011 08:01

Publisher Pearson's reliance on education is not without risk, as it is dependent on state budget decisions, it has proved lucrative for Pearson. Its latest bolt-on acquisition of Schoolnet reacts to the US government's increased focus on personalised, computer-based learning. The FT Group, the division which includes the Financial Times, performed well in 2010, with revenues of £403m, although the picture for 2011 is not clear. Paid-for digital subscriptions rose 50pc in 2010 to 207,000 and there have been nearly 1m downloads of FT apps on mobile phones and tablets. The Telegraph's Questor believes the shares are a hold.Philip Clarke, the new chief executive of Tesco, was candid in his appraisal that the market leader's UK business "can do better", particularly in terms of its execution, marketing and assortment on key non-food categories. Tesco's shares trade on a modest forward earnings multiple of 11.5 after falling substantially over the last year. The Independent thinks that Mr Clarke has learned a thing or two in his 35 years of experience at Tesco and will keep the grocer moving forward in the right direction. Buy, it recommends.Speedy Hire yesterday announced it has struck a deal to dispose of its accommodation hire unit, selling it to the market leader in this part of the industry - Elliott Group, the UK subsidiary of Algeco Scotsman - for just under £35m. This disposal may not be the catalyst for major sustained gains in the short-term, but it is a positive step for the group's long-term prospects. Buy, says the Independent.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.