Wednesday tips round-up: SSL, Inmarsat, Booker

14th Oct 2009 06:45

Scholl to Durex group SSL is well run and M&A activity will drive the shares. The stock is pricey, though, trading on a forward price-earnings ratio of 15 times and offering a dividend yield of just 1.6%. Wait for some softening before buying suggests the Independent. Hold.SSL's valuation is quite rich, but the Telegraph is convinced about the long-term growth prospects in international markets, so the stance remains buy.Ferrexpo, the Ukrainian-based iron ore pellet producer, had a good downturn. While most were mothballing operations as steel mills cut production, Ferrexpo was able to maintain output at 100%, helped by its own port, which allowed it to switch exports to China when European steel producers turned them away. The board is expected to make a decision on the deferred dividend at the end of this month. Buyers today should consider their position if the dividend is not reinstated, otherwise a it's buy says the Independent.SDL provides clients with translation software, for companies from Merrill Lynch and Dell to Best Western and Virgin Atlantic. Its results were helped by the weak pound, with 80% of its revenues coming from abroad, but the management says the market is stabilising, with order books up 10%. On 12.9 times current earnings against a sector on 13.5 times, this looks worth a punt. Buy says the Independent.Having more than doubled on the year ? and gained 27% since the start of September ? cash and carry group Booker shares have rallied hard and are likely to pause for breath. But at 43½p, or 15 times earnings, the climb has farther to run. Hold says the Times.Connaught is Britain's biggest private sector repairer of social housing, a fast-growing provider of safety inspection services ? ensuring compliance with everything from fire to food hygiene regulations ? and, latterly, a force in environmental services. On 16 times current-year earnings, and a negligible dividend, the shares look up with events. Mark Tincknell, the chairman, took some profits on his stake earlier this year and short-term investors should follow suit suggests the Times.The residency of CareTech's clients ? people with severe learning disabilities, typically in their 30s and 40s ? runs into decades. That ensures high occupancy levels (at present 93 per cent) and a high proportion of long-term recurring revenues. The company's services might be considered non-discretionary, while the fragmentation of its niche ? it has less than 2% of a £7 billion sector ? gives it plenty of scope to grow. At 454¼p, or 15 times current-year earnings, buy on weakness suggests the Times.Shares in satellite group Inmarsat are trading on a high multiple, but this is warranted by the group's prospects. The current year price-earnings ratio is a heady 24.9 times, but this falls to 19.6 then 16.1 over the next two years. Despite the high valuation the yield on the shares is still a respectable 3.8%. Shares in Inmarsat are a buy says the Telegraph. 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.