Tuesday tips round-up: Witan, Supergroup, DTZ

Witan is by nature at the more pedestrian end of the investment trust scale - it will never provide the volatility of a 3i or Candover.

Its share buyback policy also means that it never falls to a wide discount to NAV, such as is periodically the case at Alliance Trust, its FTSE 100 peer. But its fees are still modest, such that Witan provides a low-cost exposure to equities at a time when they are reasonably valued and government bonds remain unattractive. At 472œp, or an 11% discount to NAV, and yielding 2.2%, hold on says the Times.

If fashion is all about standing out from the crowd, SuperGroup looks to have succeeded. The Cheltenham-based retailer - whose Superdry range has been one of the fastest-growing British clothing brands of recent years - is pushing ahead with a stock market float when others have failed. At an offer price of 500p, the shares trade at about 15 times next year's numbers - not expensive given forecast earnings growth of 40%, but high enough until it starts to deliver. Pass says the Times.

As yesterday's trading update confirms, that process of restructuring estate agent DTZ under Paul Idzik, its new chief executive, is largely done. Poorly performing offices - such as Austria and Portugal - have been closed and £70m of total cost savings have been achieved. DTZ has even started hiring again in recent months However, at 81Œp, or 34 times next year's earnings, France's SGP sitting on a 60% stake, and no dividend on offer for the foreseeable future, the shares are no more than a hold says the Times.

Mr Idzik argues that DTZ is in a growth phase and any cash would be better spent paying down debt, or on investing in new assets. There are stronger bets elsewhere in the market, and there is no hint of a dividend to support what we think is a rather weak investment case. Sell adds the Independent.

CVS Group is now the country market leader in the provision of veterinary services but, even as the country's market leader, the company has a penetration of about 8% into this market. The group recently agreed to buy Veterinary Enterprises & Trading (VET) for up to £12.2m. The purchase of VET means that it will be more difficult for new consolidators to enter the market, as VET was an ideal starting spot. CVS is still a buy says the Telegraph.

Raven Russia builds and then rents out warehouses in Russia, with the majority of the portfolio focused on Moscow. On simple valuation alone, Raven looks cheap. Following the year-end property valuation, the full diluted net asset value per share stood at 60p at the year-end exchange rate. The share price, on the other hand, stands at around 52p. Nerves about Russia notwithstanding, that discount should close. Buy says the Independent.

Callback specialist Netcall's revenues fell in the first half of its financial year from £2m to £1.8m, recurring revenues - which make up the lion's share - were up almost a tenth. It added that the second half has started well, with the management predicting stronger sales in the period off its solid pipeline as the market strengthens. Hold says the Independent.


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