Weekend tips round-up: Amec, Petropavlovsk, Berkeley

6th Dec 2009 10:45

On Friday, Amec revealed its strategy for the next five years. The group will continue its transformation into a specialist energy and mining services company, with an increased focus on the sub-sea engineering, underground mining, renewables and water sectors. Management aims to more than double earnings per share by 2015 to 100p, compared with the current 2009 consensus forecast of 46.4p. This implies an annual growth in earnings over the next five years of about 13%. The shares are trading on a December 2009 earnings multiple of 17.2, but about a quarter of the group's valuation is underpinned by cash. The dividend yield is 2.1pc, so there is plenty of scope for the payout to be increased. The stance remains buy says the Sunday Telegraph.Capping an extraordinary year for the group, FTSE is expected to confirm next week that Russian gold producer Petropavlovsk (formerly Peter Hambro Mining) is to enter the FTSE 100. At the close on Wednesday, the company's market capitalisation needs to be greater than the 90th largest company in the index. This looks likely to be achieved and it is expected that the group will replace Thomas Cook in the blue-chip index. The group is on track to produce 500,000 oz of gold this year - more than FTSE 100 peer Randgold Resources. The group's expansion plans will grow this to 1m oz by 2012. The stance remains buy ahead of the index reshuffle on Wednesday, says the Sunday Telegraph.The key thing for housebuilder Berkeley will be to nourish its landbank sufficiently to take advantage of any rise in the property market. However, Berkeley's recovery, more so than that of its peers, is pegged to a rebound in the fortunes of London as a financial centre. Analysts expect full year adjusted earnings per share of 57.3p, putting the shares on a full-looking 15 times forecast earnings. The recovery already looks to be priced in says the FT.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.