Wednesday tips round-up: Wolseley, GKN, Man Group

30th Mar 2011 06:36

Wolseley, which operates the Plumb and Build Center brands in the UK, said yesterday construction sectors had now "broadly stabilised" in most of the 25 countries in which it operates. The group now trades on a forward-earnings multiple of just under 17. Even with the dividend, this lofty valuation makes the company only a hold, says the Independent.GKN is an engineering group that serves markets such as automotive, aerospace and "land systems", which includes agricultural and mining gear. The company is the biggest supplier of "driveline" components - which connect the engine and transmission to the wheels and other parts of a car - for light vehicles and has a global market share of more than 40 per cent. GKN's full-year results demonstrated the strength of its recovery following 2009's decline. The Scotsman says buy.After a rocky couple of years there are signs of life at Man Group, the world's biggest publicly traded hedge fund. It said yesterday that it expects new client money to outstrip redemptions in the final quarter of the year to March after two years of net outflows. With the shares on an apparently undemanding 12 times 2011 forecast earnings with a yield of 5.6 per cent, and with fund flows moving in the right direction, now could be a buying opportunity. The Independent says hold.Faroe Petroleum lives in the topsy-turvy world of junior oil explorers where losses are not all they seem. Take yesterday. The group posted £26m losses for 2010, more than double the £11.8m recorded in 2009. And the share price shot up, by 7.8% at one point. How so? In part, because the soaring losses reflect a flurry of exploration last year with the chance of riches to come. Buy, says the Independent.RGPlease 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.