Wednesday tips round-up: Vedanta, AstraZeneca, Green Dragon Gas

11th Apr 2012 06:55

Questor digs into the numbers for Indian mining giant Vedanta Resources. It had a shocker yesterday with iron ore production down 27 per cent, leading to a sell-off. But Questor makes the case for the group, which has interests in lead, silver, zinc, copper and, after a protracted deal with Cairn Energy, oil and gas. There are logistics problems in Goa, and the company is suffering from a mining ban in the state of Karnataka but trading at just 5.1 times 2012 earnings and yielding 3% Questor believes there is still value in Vedanta. Hold is the advice.In the Times, Tempus wonders what pill will relieve the aches and pains of AstraZeneca which just can't seem to discover the so called "blockbuster" drugs that are the mainstay of big pharma. It's shunned expensive and risky acquisitions but its alternative strategy, low-key partnerships with small drugs developers, doesn't seem to be getting it anywhere. The shares yield 6% and only trade on eight times 2012 earnings but drugs companies need to make drugs, Tempus can't see value in AstraZeneca.Tempus is more positive on Green Dragon Gas, which yesterday announced an 18% uplift in its reserves in China. The shares have not been stellar, falling 28% in the last 12 months. Tempus thinks though the firm may turn a profit in 2012. This may be a buy for the brave (and patient).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