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Friday tips round-up: Experian, Cookson, SuperGroup

Date: Friday 16 Jul 2010

Experian is more than just a credit checker, having transformed itself into a global information company whose business extends to more than 90 countries, offering services such as fraud prevention and risk management. Growth will undoubtedly come from its ability to open up new markets and offer new services.

On about 14 times full-year earnings, they are probably fairly valued at the moment, and the dividend yield is minimal.Experian still shows just about enough potential to make the shares worth holding for now says the Independent.

Experian's first-quarter revenues were up by 6% ahead of a market consensus of 3 to 5%, and are set to grow by 5% or thereabouts in the first half. Experian has always been cautious in predicting any upturn, while the past two financial years have seen growth in the 3% region. The shares may seem expensive at more than 14 times this year’s earnings, but taking a longer view, they should have farther to run adds the Times.

Smiths News distributes newspapers and magazines across Britain on behalf of all the major national and many regional publishers, with a heritage stretching back 200 years. Brokers have the stock on a price of 7.6 times estimated 2011 earnings. That is undemanding and, given the steadiness of the company, hold says the Independent.

Cookson shares began the year at about the 422p mark and are barely above that now, despite some violent swings in the intervening months. Ceramics maker Cookson is the key UK industrial proxy for global steel volumes, which could well be lower over the second half of the year. But these concerns appear to be over the price, so much so that despite steel production rising in recent months, Cookson has been trading down. The market is being too harsh on the short term, overlooking the potential for strength in the future. Buy ahead of interims in August says the Independent.

Electrocomponents is thus one of those useful bellwethers of how well the world economy is doing and, on that basis, yesterday’s trading statement should give us all reason to be cheerful. Group revenues were ahead by 24% year-on-year, and the rate of growth accelerated during the quarter. The shares are selling on more than 15 times this year’s earnings. Up with events, but a solid long-term hold says the Times.

Shares in SuperGroup, the fashion chain beloved of David Beckham and Jude Law, looked pretty toppy when they came to the stock market in March at a fiver. At last night’s 920p close, they look positively stratospheric. ts fans in the City believe that it could become an international super-brand like Abercrombie and Fitch and urge a switch from the likes of Asos. Bears say that this sort of high-fashion brand could disappear as fast as last year’s hemlines. For now, the shares are on 20 times this year’s profits. Funny place, Planet Fashion says the Times.

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.

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