Wednesday tips round-up: Halma, Chemring, Grainger

Halma, which specialises in hazard detection and "life protection" technology, looks in rude health itself these days, although it did have to undergo some painful cuts to get here.

Its products include smoke detectors and safety sensors for lifts and automatic doors, water disinfection systems and ophthalmoscopes. Other pieces of Halma kit are used in photonics and gas detection, and for locating leaks in water pipes. There are grounds for thinking that management's promises on growth will be met this year and that the divi is secure. Investec has the share price of 13.7 times this year's forceast earnings, which is only slightly higher than the UK electronics sector's 12.7 times. Buy says the Independent.

The Government is set to unveil the findings of a defence review later this year which will almost inevitably lead to spending cuts. That in turn is bad news for companies like Chemring, which will see a fall in demand from the UK and other cash-strapped nations. In the past year, investors have had a good run with Chemring, with its shares rising nearly 70 per cent. Now is the time to book those gains. Britiain's defence cuts will only hit the industry in 2011 or 2012, but the Independent is already nervous about the sector. Sell.

Online business directories group Infoserve had a torrid year but it did post its first pre-tax profit yesterday, indicating promise and fuelling confidence in the company. Hold for a recovery says the Independent.

Grainger's business is primarily to buy homes worth around £190,000 and let them at levels below market value. It then aims to sell the property on for a higher value once the tenant moves out, or dies, or the asset has been refurbished. Tthe mature housing markets Grainger operates in are shielded from the worst of these, and it could benefit from the changes in CGT by picking up properties on the cheap. The housing market may be volatile in the short term, but Grainger still looks affordable. Buy says the Telegraph.


Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.