Weekend tips round-up: Davis Service, Compass, Berkeley...

5th Dec 2010 10:56

Davis Service operates a broad-based British and Continental business, renting out work uniforms, sheets, towels and even surgeons' operating gowns as well as doormats.The starategy is to concentrate on areas where it is doing well, such as uniform and mat rental, and spend less time and money on peripheral, less profitable activities, plus change its name to Berendsen, which is its brand name on the Continent. Davis/Berendsen is expected to increase profits steadily over the next few years, from £92m last year to more than £100m by 2012. The shares are trading at 405p and are backed by a healthy dividend, forecast at 20p for 2010. This company is not glamorous but it is reliable and should deliver solid growth. Buy says the Mail on Sunday.Compass Group is the world's biggest catering company, serving four billion meals a year in 50 countries. The shares have come a long way in the past 18 months and many brokers believe they will rise to at least 650p in coming months. Keep at least half of any holding as the group seems to be on a winning streak says the Mail on Sunday.During the first half, housebuilder Berkeley added £336m to the anticipated profits held in its land and continues to buy sites that rivals see as too risky or, in some cases, simply cannot afford. Berkeley estimates a 28% gross profit margin on its land, about 10 percentage points more than the sector average. Combine this with the premium commanded by a highly respected management team, and shares trading at 1.3 times forecasted year end net asset value, almost double the sector average, still look attractive says the FT.In July, Fiberweb shares shares were 58p. The company is a world leader in producing specialist fabrics used in everything from nappies to home insulation. Today, the shares are 80p - a rise of more than 38% in just five months - but the stock should go further, suggests the Mail on Sunday.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.