Wednesday tips round-up: Sirius Minerals, Volex, GlaxoSmithKline

29th May 2013 06:54

The global pharmaceuticals sector is stuck in the 'doldrums' due to the impact of the so-called 'patent-cliff.' However, they have rebounded from their previous cycle lows - even in the case of laggards such as AstraZeneca, GlaxoSmithKline or Novartis - as investors seem to appreciate their defensive qualities. As well, Morgan Stanley, for one, sees earnings per share (EPS) for US pharma stocks moving up a notch beyond 2015 from the low single digits to the high single digits. Further, the large-capitalisation names in the space have yet to see consolidation, which may buttress their share prices further, the Financial Time's Lex column writes. Almost all the pieces - but not all the stakeholders - are in place for potash miner Sirius Minerals to begin production at its North Yorkshire plant, on target, by 2015. Hence, the possibly 'make-or-break' regulatory decision on whether to allow the company to produce within a national park, where its main mine is located, has been postponed until July 2nd, versus the end of May, as was previously expected. In the company's favour, the Ministry of Defence is now minded to withdraw its objections. Yet the same can still not be said of Natural England and the Environmental agency. The Daily Telegraph's Questor team tipped the shares as a speculative buy at 18p, 22p and 22½p. Questor is hopeful that permission will be granted, but the shares are now a hold it says.Volex's announcement that it has found a new Chief Executive sent the shares sharply higher, completing a far reaching management change. However, the company's financials deteriorated notably in the year to May, with the firm bleeding cash and net debt on the rise, while revenues dropped by 9% to $473m. Even so, the worst looks to be behind for the firm, says The Times's Tempus. Furthermore, analysts seem upbeat on the selection of Christoph Eisenhardt, who comes from Siemens and KVT-Koenig Group, as the new boss. Yet it may be prudent to wait until Mr Eisenhardt plugs in, Tempus adds. 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.AB