Friday tips round-up: Daily Mail, DSG, Jarvis

Daily Mail group's sharp rise in the pension deficit is a concern, while £1 billion of borrowing acts as a brake on earnings-boosting acquisitions.

But with the value of DMGT's non-consumer businesses clearly showing through, and the remainder geared to cyclical recovery, the shares, at 424œp, or ten times earnings, are worth holding says the Times.

Shares in DSGi, the pan-European electricals group that owns Currys and PC World, which trade on 2010 price to earnings ratio of around 40, are not cheap. Overall, the outlook now looks rosier, but there are safer retailers to hitch a ride on for the time being. Hold says the Independent.

For the rail contractor Jarvis, Network Rail's delays in dolling out new work have caused problems. The group reported an adjusted first-half loss of £3.6m yesterday, after a profit of £4.4m in the same period in 2008, blaming falling volumes in workload. The stock is pretty cheap, but with no dividend, we see little reason why investors should be patient. For the time being there are hotter stocks than Jarvis, which is one to avoid says the Independent.

The greeting card retailer Clinton Cards has had a good year on the stock market. Investors who had the foresight to buy at the end of 2008, when the shares were at 5.5p, are sitting on returns of more than 800 %. Considering the competition posed by the internet, the shares may come under pressure. Hold says the Independent.

Longer-term challenges remain for Clinton. Rising overheads, lower high street footfall from increased online shopping and the challenge to greetings cards from texts and social media. However, at 46p, or less than nine times earnings on the forecasts of Altium Securities, the shares are not stretched. Hold adds the Times.

The twin comforts from yesterday's numbers from aerospace engineer Hampson are that tooling orders are up 27% cent from their August low and that the company continues to pay a dividend. Hampson's strategic bet on composites will, one day, pay off. But even at 71Œp, down 6Ÿp, or less than six times next year's earnings, it feels too soon to buy says the Times.

Dana Petroleum shares are trading on a December 2009 earnings multiple of 32 times but expectations of future production means this falls to 14.4 next year, then 12.2 in 2011. Since April the shares are up just 3% compared with a market up 33%. The stance on the shares remains buy says the Telegraph.


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