Wednesday tips round up: Shell, IG Group, ITE

18th Jul 2012 07:07

In the Telegraph, Questor is still a fan of Shell. The column believes management have held their nerve by walking away from a bid for Cove Energy which has attractive natural gas assets in East Africa - the next frontier for gas producers. Questor suspects the company has a "plan B" to gain access to the area and has avoided over-paying. The shares yield 4.8% and with oil likely to remain over $90 a barrel for the foreseeable future, Shell is a buy.In the Times spread betting firm IG Group gets credit for its cash generation and consequent dividends, but the problem with investing in spread betters is that there is no forward visibility. They make money when there is lots happening in the market, and while IG published strong full-year results yesterday, it's very uncertain whether that kind of success can be repeated. Tempus thinks at 12 times this year's earnings, IG is a hold.Tempus is equally downbeat on exhibitions organiser ITE which focuses mainly on emerging markets. Exhibition earnings will always be "lumpy", says Tempus, because some of the big shows are biennial. At 11 times earnings, the column says hold.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