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Thursday tips round-up: Experian, Autonomy, Marston's

16 October 2008 07:01:00

Credit checking agency Experian has managed to grow revenues in the first half by 13%, 3% of which was organic. Better still, growth is accelerating. In a market where few stocks appear attractive, Experian is showing some defensive qualities. Buy, says the Telegraph.

Looking for a company that is set to benefit from the global financial turmoil? Look no further than Autonomy, whose software is used to track emails and phone conversations. Of course no company is immune to the looming recession and, on 24 times forecast earnings, Autonomy shares don't come cheap. But they are worth holding for the long term, says the Telegraph.

The company is likely to benefit from the host of litigation and regulation that will undoubtedly be sparked by the financial crisis. Investors need some safe havens, especially with the economy heading towards a recession, which will mean that other areas of punters' portfolios will take a battering. Buy, says the Independent.

The problem with pub group Marston's is not deciding whether it makes sense as a long-term investment, but when to start buying. At 112p, an eight-year low, the shares trade on less than five times 2009 earnings, but with forecasts likely to fall, they can be no more than a hold, says the Times.

The advantage of online gambling company Sportingbet, say the watchers, is that it is cheap. "Sportingbet stands on a 2009 price earnings ratio of 5.6 times, falling to 5.1 times in 2010, or an enterprise value to Ebitda of 2.7 times in 2009 falling to 2.5 times in 2010. This compares to the peer group, which on average trades on a 50 per cent premium to Sportingbet." With that in mind, investors had better take a punt. Buy, says the Independent.

The early stage of sweetener supplier Pure Circle's development ? operating profits of $6m (£3.5m) on sales of $33m ? means that yesterday's maiden full-year results were of only passing interest. At 154½p, this is a high- risk stock whose prospects will soon become clearer. A speculative buy, says the Times.
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