News

Sage shares, at 167¾p, up 10p, where they trade at 11 times current-year earnings and yield 4.6 per cent, are not especially cheap, given the risk of profit downgrades to a company that is typically late to feel the effects of economic downturn. Sell, writes the Times.

Numis chief executive Olive Hemsley points out that the group, which already trades at net asset value, has plenty of cash and that he expects to pick up good people as other houses shed staff. However, Mr Hemsley himself does not try to argue that all is great in the markets and we would tend to avoid financial services stocks completely for the time being. Sell, says the Independent.

The market appears to be unwilling to pay for future growth for Vedanta at this stage in the cycle. Questor believes that this will change as we move through next year. Shares in Vedanta look like a bargain right now - as long as you are willing to wait. The Telegraph's Questor says buy.

At 143¼p, Stagecoach shares also offer a solid 4.4 per cent dividend yield, with the payout more than three times covered by forecast earnings. At seven times next year's forecasts, the shares might appear attractive but, given the capacity for rising unemployment to send Stagecoach further off track, the shares are still best avoided, says the Times.

Investors buying ACM Shipping today would be taking a market risk, but that should not hide the fact that ACM is strong, and now more reasonably priced. Buy, says the Independent.

At 57p, Dawson sits at five times earnings. More compelling is a 7½p full-year payout, which Dawson is minded to maintain and which gives a hefty 13 per cent yield. Buy, reports the Times.

Reits have been hit hard in recent months, and things will not improve fast. Shaftesbury is one of the better investment options, but hold on to your hat. Cautious hold for the Independent.

OPEC's failure to agree a production cut at its meeting on Sunday has sent the oil price into a tailspin. The crude oil exchange traded fund recommended on Friday (LSE: CRUD) has fallen 13pc since its recommendation. Questor remains unperturbed, says the Telegraph. ETFS Crude Oil is a buy.