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Sunday tips round-up: Autonomy,Topps Tiles, H&T

Sun, 01st Nov 2009 14:40

Autonomy's ability to turn earnings into cash has been a point of great debate this year. The company appeared to silence its critics at the third-quarter results, when it announced a cash conversion rate - calculated as Q3 operating cash flow over Q3 earnings - of 131pc, which it duly trumpeted throughout its presentation.The Telegraph's Questor was a long-time buyer/holder of the stock. Autonomy may well buy another company this quarter or next, giving the shares another short-term boost, but that will not be proof of any long-term, sustainable growth. Sell.Topps Tiles shares were worth 300p in 2007. Now they are 82.25p. Brokers do not expect a dividend this year, but with so much stock in the hands of the two founding shareholders the company is likely to resume paying dividends as soon as practically possible. Topps is lean, well run and in a long-term growth sector. Buy and hold, says the Daily Mail.It has been a good recession for H&T, the UK's leading pawnbroker chain. The group has been trading robustly, boosted in particular by a new line of business - small retail units in shopping malls where customers can sell gold jewellery for cash. The gold shops may lose their lustre if the gold price softens but Chief executive John Nichols is aware of this and has ensured the units are on flexible rental contracts. The core business is flourishing, too. A year ago it had 100 stores. By the end of this year it expects to have 122. Following reports of merger talks it may be worth holding more of the stock, says the Daily Mail.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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