| CATEGORY: TIPS ROUND-UP SECTOR: FINANCIAL SERVICES |
Wednesday tips round-up: RAB Capital, Kingfisher, Wolseley |
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Wed 22 Mar 2006
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LONDON (SHARECAST) - RAB Capital is that rare beast, a listed hedge fund manager, and as such offers a way of gaining exposure to the alternative assets industry from the conventional stock market.
The yield is tiny, but the cash pile alone is worth 16p per share. Given the inevitable fund performance setbacks, it will be a bumpy ride, but the shares look attractive. Buy on the dips, says the Times.
The Telegraph adds that RAB believes it can grow 20-25% organically over the next few years and the shares should have somewhat further to go.
Thirty-two million people suffer from migraines in America alone. Minster Pharma is at the forefront of research in this area.
Paul Sharpe, chief executive, developed the drug while at SmithKline Beecham, where early tests proved encouraging. SmithKline was forced to sell the drug after its merger with Glaxo Wellcome.
The chances of failure are high enough to give risk- averse investors a real headache, but the more adventurous might be tempted. A speculative buy.
Kingfisher reported a dramatic fall at its core B&Q chain, says that there is no light at the end of the tunnel, that its dividend is looking less than safe.
The shares rose close to a six month high, even so. This makes the shares, rated on nearly 22 times forecast earnings for the full year, one of the most expensive in the retail sector, the Telegraph says sell.
Wolseley was keen to play down concerns about a slowing US housing market yesterday. In North America, though, which accounts for 65% of the business, Wolseley faces tougher competition from Home Depot, which takes control of main rival, Hughes, in April.
Even so, Wolseley is still a quality outfit and will continue to use its £250m of cash after dividends for growth. Hold on says the Telegraph and the Independent.
Now Permira has walked away from a bid for HMV there seems little reason for holding the shares.
There has been excitement about the computer games market but this cannot save HMV. It accounts for less than 10% of the retailer's sales. If the fate of US music retailers is anything to go by, HMV's future is bleak. An outright sell says the Independent.
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.
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