Wednesday tips round-up: Telecity, St.James Place

30th Apr 2014 07:31

Telecity has dealt investors quite a bit of volatility of late, as the stock fell victim to the sometimes wild gyrations in market sentiment. At the start of the year it dropped massively after it said it would be investing in sales and marketing. Yesterday the shares jumped 15 per cent after reporting improved organic growth. The company is an attractive bet on the continued expansion of so-called 'cloud services' and 'rich content' via mobile phones and tablets. In parallel, companies will seek to liberate themselves from the chains that are local hard drives. In particular, the company alluded to recent deals with Amazon.com and Facebook. Also, the firm has been mooted as a potential takeover target by Equinix and InterXion. Furthermore, there continues to be a valuation gap with the latter in favour of Telecity. "British companies are catching the eye of American rivals at the moment. Telecity is in the right part of the market to attract attention. Buy," says The Times's Tempus. St James's Place did it again on Tuesday, delivering a customarily impressive set of figures. Net inflows reached £1.2bn, up by over a quarter on the year ago period while new business sales sped ahead by 20% to reach £205m. The firm's track record in that regard is quite good, managing to retain 95% of them. The company also came out unscathed from the Retail Distribution Review. In short, this company is in top form. Additionally, it recently managed to bring in Woodford Investment Management as a new fund manager. No, at 21 times' last year's profits the shares are not cheap, but for now the company looks set to keep on growing with the favourable wind afforded to it by a recovering economy in its sails. "Buy at the first sign of weakness," Tempus writes. 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