Wednesday tips round-up: Vodafone, Carnival, Telecom Plus

22nd May 2013 06:57

Despite the falls evident in yesterday´s quarterly results, in what has traditionally been its main performance metric -organic service revenues - any weakness in Vodafone´s share price looks like it would be a buying opportunity, says The Times´s Tempus. Above all, it is hard to see how the situation with Verizon will not work itself out in its favour. Furthermore, the telecoms operator will likely bid for spectrum licenses when they come up for sale in countries such as Hungary, South Africa and India, for example. Then there are the prospects for Voda´s share of profits out of Verizon, which increased by almost a third in 2012.Cruise ship operator Carnival´s profit warning is the result of an additional two mishaps on board cruiseliners in its main market, the United States, which is particularly irksome for the company, given the wide coverage received by some of these incidents in the media. An engine fire on the Carnival Triumph left 4,200 passengers stranded on a ship adrift in the Gulf of Mexico for five days. There were sanitation issues with reports of overflowing lavatories and food rationing, for example. However, the long-term outlook for the industry appears robust and the opportunity in Asia is substantial. With the shares trading on a 2014 multiple of 12.8 after yesterday's fall, and yielding a prospective 3.7% this year and 3.8% next year, The Daily Telegraph´s Questor team keeps a buy.Telecom Plus is a re-seller of energy, telecoms and broadband to domestic consumers, which aims to save them money in the process. Interestingly as well, it employs members of the public, so-called distributors, to sell its services. Perhaps not surprisingly, the company´s main performance metrics have improved inexorably with each passing quarter. The shares sell on about 28 times' this year's earnings. Hence, future gains in their price may not be as dramatic, but there looks to be more to go for, Tempus says. 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