Tuesday tips round-up: Hammerson, Petra, Skywest

Hammerson, the FTSE 100 shopping centre owner behind the Bullring, in Birmingham, and Brent Cross, in North London, disclosed that it has restarted new development activity - perhaps the clearest sign yet that it believes the extraordinary turmoil of the past three years is over.

At 387œp, the shares trade at an 8% discount to historic next asset value and provide a 4.1 per cent yield. A solid hold says the Times.

One big diamond does not a mining company make. However, Petra Diamonds, the Aim-listed mining group, is expected to sell its 507-carat white diamond, the Cullinan Heritage, later this week, and yesterday said that the rock, one of the biggest ever discovered, is attracting more interest than initially expected. Analysts at the house broker, RBC Capital Markets, reckon that it will fetch between $15m and $20m. Petra is a proxy for the diamond market, so if investors are confident that the price of rocks is on the up, you're probably best off buying Petra. Buy says the Independent.

Pawnbroker Albemarle & Bond expects the tough economic conditions to continue, weighing on its retail business, and that the gold purchasing market will reach maturity. But irrespective of whether the surge in consumers selling their gold continues or not, A&B has a shining track record of delivering. Buy says the Independent.

Skywest Airlines has struck gold by ferrying miners in Western Australia. The region hosts commodity heavies such as Rio Tinto and BHP Billiton among others, and Skywest has been cashing in by flying their employees in and out of the mining areas. The investment case is supported by a 3.9 per cent yield and a stock trading on an undemanding multiple of 4.3 times WH Ireland's full-year estimates. That falls to 2.8 times on the broker's numbers for 2011. Buy says the Independent.

Sugar prices may remain close to 30-year highs but shares in Pure Circle - the maker of an alternative sweetener derived from a chrysanthemum-like plant - have failed to move in recent months. Moves by the likes of Nestlé to reduce the sugar content of their products by 25% should work in favour of naturally derived alternatives. Investor confidence remains fragile after last year's profit warning. At 238œp, up 10œp, await further clarity from next month's half-year results before buying in suggests the Times.

Shares in Animalcare, the Yorkshire-based seller of veterinary medicines and agricultural supplies, have risen by one fifth since the start of this year. The prospect of two new generic drug launches in the next few months is encouraging - as is the potential to market up to ten additional medicines over the next two years. But although at 120p, up 2œp, or 13 times earnings. Hold says the Times.


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