Upgrade Now

Share tips: Relx, Bank of America and Credit Suisse

By Victoria Young

Date: Friday 24 Jul 2015

Share tips: Relx, Bank of America and Credit Suisse

(ShareCast News) - The company formerly known as Reed Elsevier, Relx is one of the most reliable stocks on the market, The Times' Tempus said, although undeniably expensive.
The B2B publisher's strong cashflow allows a substantial shares buyback programme, £500m this year and it is set to continue there is no large acquisition, Tempus writes.

Relx has a reputation for predictability, and has ground out slightly higher revenues and margins year after year.

Tempus recommended buying the stock, saying its predictability brings its own rewards.

Meanwhile the Financial Times' Lex column said Bank of America's slog back to reliability is moving too slowly.

Bank of America revenues were up a bit, and costs down in its latest round of earnings, but its cost to income ratio is around 65%, 10 percentage points from where is should be, Lex said.

The bank must install a new, growth oriented chief financial officer, Lex writes, as its chief executive Brian Moynihan had promised a "peace dividend" from the end of the banks' crisis area woes.

Credit Suisse's main challenge is to figure out how to stand out from the crowd, the Financial Times writes.

New chief executive Tidjane Thiam was conforming to what was expected; a focus on wealth management, private banking and Asia, and scaling back the investment bank.

If he follows through, Lex said, Thiam could shrink the gap between it and rival UBS, but more is needed.

The column said if Thiam was looking at capital raise he must "get his skates on" as changes at Barclays, Standard Chartered and Deutche Bank might also result in cash calls.


Email this article to a friend

or share it with one of these popular networks:

Top of Page