Sunday tips round-up: Sportingbet, PureCircle, Serco...

Over the next couple of years it's possible that the online gaming industry will emerge from its troubled past and boom again as it did in the early years of this century. With this in mind, the Mail on Sunday reckons the London-listed online bookmaker Sportingbet might be worth a flutter.

Sportingbet may gain a huge boost either from a takeover or a liberalisation of the US market. But even without these, the company is undervalued. Full-year profits will confirm the strong performance. At 67p the shares are valued at a modest ten times earnings so it is not too much of gamble to say: Buy.

PurCircle has turned rather sour since April. The shares have dropped to just 182.5p after a disappointing interim management statement in July. The company's prospects hinge on stevia-based sweeteners taking off and on PureCircle securing a significant part of the market. The fundamental case for stevia-based sweeteners and for the company remains unchanged. These shares are still a big risk, but there is also the potential for a substantial recovery in the price. At the very least it should be possible to exit at a better price than this. Hold says the Mail on Sunday.

Kenmare Resources has been developing a world-class titanium asset in Mozambique for a number of years - and management have made substantial progress. It takes many years to develop a deposit and now looks like an interesting time to put some speculative cash into this company and wait for the market to tighten. Buy says the Telegraph.

There has been a battle of the bulls and bears in the outsourcing sector. Bears argue that companies' revenues and margins will be hit by government austerity measures. The bulls argue that this has provided a wonderful opportunity for new business - although it is likely to take some time for this to come through. Serco trades on a December 2010 earnings multiple of 17.8, falling to 15.6 next year and yields 3.7%. Hold says the Telegraph.


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