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Thursday tips round-up: Fresnillo, Antofagasta, Bodycote

Thu, 14th Oct 2010 06:29

Fresnillo, the Mexican company that is the world's biggest producer of silver, expects to top earlier forecasts of gold and silver production this year after a strong third quarter in which production of both metals was running at record levels. A note from Liberum yesterday points out that Fresnillo is now on about twice the p/e rating of Hochschild. The broker says it is "starting to warm up" on Fresnillo, but the shares still look dear, says the Times.Shares in FTSE 100 copper producer Antofagasta hit a 12-month high on Wednesday last week of £13.13, but have been on the slide since. The shares were first recommended at 915½p on December 13 last year, and they are now up 34pc compared with a market up 7pc. The shares do appear fully valued at the moment and therefore the rating is downgraded to hold from buy, at the Telegraph's Questor.Though sitting among the quoted engineers, Bodycote is actually a services company, treating parts of machinery that go into a wide range of industrial applications, from car and lorry engines to industrial turbines. The shares are trading on 18 times this year's earnings. Hold, says the Times.The Independent also casts its eye over Bodycote. The dividend yield of more than 3 per cent is also healthy compared with rivals. It's probably the case that the shares are approaching fair value, but we would suggest that there is still some juice left in the tank. So buy, the paper says.Today Man Group's purchase of the hedge fund GLG, announced in May, is finalised. A note yesterday from Execution Noble suggests the share price at present does not take account of any performance fees from AHL and the shares, on about 11.6 times's this year's earnings, are lagging behind the sector. True; but another round of QE might cause further upsets. A cautious buy, according to the Times.On a quiet day for the market, the rumour mill took aim at Reed Elsevier. Talk on the trading floors has focused on whether the Netherlands' Wolters Kluwer has been lining up a bid for the UK listed publishing group, whose titles include The Lancet, New Scientist and Variety. At a price of just 12.7 times forecast full-year earnings, the stock looks cheap, and has a prospective yield of 3.7 per cent. In a recovering market, the independent says buy.Walker Greenbank might not be a household name, but if you've bought wallpaper or printed fabrics from John Lewis, you've probably bought one of its products. With a revival in the popularity of wallpaper and the potential for expansion overseas now the business is fit and firing, there should be more to come from this fast-recovering firm. Buy, says the Independent.RPC, which makes rigid plastic packaging, has been performing well in a challenging market. There have been strong headwinds in terms of polymer pricing, but the company is able to pass these on to customers. The shares remain a buy, but any gains are likely to be slow and steady, as they have been over the past year, says the Telegraph.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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