Tuesday tips round-up: Premier Oil, Connaught, UBM

The Catcher oil field in the North Sea could be one of the best finds in the region in recent years, and comes just as UK production is declining.

As the 35% owner of this prospect, Premier Oil is in a good position to benefit from the rich resources of the formation, which is thought to hold up to 155m barrels of recoverable oil.

For Premier, the next two years should see an extra 75,000 barrels per day of production and a substantial increase in cash flows. In time, Catcher should add to this compelling production pipeline. A buy says the Telegraph.

Having fallen by a third on Friday night, shares in Connaught lost another third yesterday. They have effectively been in freefall since a profit warning on Friday. The problem relates to the company's business in social housing. Local councils have been delaying spending, putting Connaught's work such as re-wiring and other repairs, on hold. There could be an argument for buying again at these low levels. But the trouble is, profit warnings often come in threes. Sell says the Independent.

UBM is one of the more defensive of the media stocks, partly from its limited reliance on advertising, and there is strong opportunity in its online growth. Brokers have the stock on a price of 10.9 times this year's estimated earnings, cheaper than most of its rivals. Take advantage and buy says the Independent.

At 104œp, Max Property shares have fallen back 19% from their post-float high and trade at a 14% discount to Oriel Securities' estimate of net asset value. That discount is not unreasonable given Max's size and non-prime niche but, for those shareholders prepared to play a long-term game, is a good point of entry. Tuck away says the Times.

As the economy has maintained its fragile recovery, so marketing group Creston shares have put on weight - gaining 47%, including a 10% jump in the past week. Yesterday, the company said the start of the financial year was in line. Even though the dividend yield is just 1%, trading on an enterprise value to Ebitda of just 5.4 times, Creston is undeniably cheap. Buy says the Independent.

Creston's improved like-for-like revenues reported in the second half of its financial year have persisted over the past few months. At 96p, down 2œp, or less than eight times earnings and with the final dividend restored, hold on adds the Times.

At 56p, or less than seven times raised 2010 earnings, Fiberweb shares look too cheap given the maker of non-woven materials for nappies and tampons' recovery potential and exposure to emerging market growth. Buy says the Times.

In its trading update yesterday, Standard Chartered, the Asia-focused bank guided investors that it was on course to deliver an eighth consecutive record financial performance with revenues and profits set to surpass their level at the halfway point in 2009. The announcement also made clear to the market that it had no direct exposure to the debt of Southern European governments - a position many other lenders can only upon with jealousy. Standard Chartered's very consistency in the reliability of its earnings means this year's increase in profits, even if they hit another record, is already priced in. Hold says the Telegraph.

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