News
Sunday tips round-up: SABMiller, SSL, Clinton Cards
19 October 2008 14:13:00
For the past six months, brewer SABMiller's financial performance may have come in in-line with expectations, but as the company itself admitted, this was largely due to favourable exchange rates, which came as "slower volumes have constrained profit growth". With exchange rates now moving against SAB and previous hedging policies ensuring no quick gain from lower input prices, a number of analysts were looking to downgrade forecasts last week. Avoid, says the Sunday Telegraph.
A few brave commentators and steely nerved high-rollers are beginning to sniff around for the bargains of the market crash. For those willing to join them, one share worth considering is SSL International, the group behind Scholl footwear and Durex condoms. Once the irrational fear has left the market, this will be one of the survivors and its value should bounce back. At these levels, the shares are a buy for the long term, says the Mail on Sunday.
It's a shame no one really stocks a "Sorry you've been made redundant" note. It would have the potential to be a best seller for Clinton Cards in the months to come. As it is, the outlook seems pretty bleak for the greetings cards retailer. Despite having a market share of around 23%, the company slumped into the red last year, mostly owing to a £30m writedown in the value of the Birthday's chain it bought in 2004. One to avoid, says the Sunday Telegraph.
Sweetener company Pure Circle has come up with Reb-A ? a sweetener derived from the Paraguayan Stevia plant ? and has struck partnerships with a number of companies including PepsiCo to help develop and market it under the PureVia brand. Success so far in building a blue-chip client base led it to report a 300% increase in revenues last year to $33m, with pre-tax profits up fourfold to $2.2m.The stock could easily go sour, but for those with a sweet tooth, the shares warrant further attention, says the Sunday Telegraph.
Spanish banking giant Santander has outperformed every UK bank during the past year. It avoided any exposure to the US sub-prime crisis partly because of Spanish regulators' tough stance on the exotic investment. But while it has avoided these risks, it cannot avoid the secondary effects of the credit squeeze - the global recession. Buy or sell? Neither, says the Mail on Sunday.
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.
All data suppied by Digital Look (15 minute delay)