News

Security GFS shares are not cheap, and a serious recession will have an impact on the company.

However, with more private-sector companies looking for ways to cut costs and outsource non-essential activities, such as security, G4S is well set. The fact that the group operates in 120 countries and does not rely on any of them, except the UK, for significant profits is a plus too. Those looking for defensive shares should buy says the Independent.

Funeral services operator Dignity issued a solid if not terribly exciting update yesterday, saying that it is on track to hit full-year expectations. The shares, trading at 14 times forward price-earnings, are cheaper than they have been in recent months, without any under-performance of the business. Buy says the Independent.

Property group Hammerson is robust but in the wider sector there is a great deal of uncertainty, especially given the lack of liquidity from the banks, which is hampering growth. This should make investors wary. Hammerson itself has put new developments on ice until the end of next year, and it would be prudent of buyers to do the same. Hold says the Independent.

The problem for Dairy Crest is that profit growth has stalled. Indeed, once property profits are stripped out, the company's dairies business had a small first-half loss on sales of £540m. Secondly, there is reason to think that, despite the strength of its branding, Dairy Crest's cheese profits could come under pressure from increased European milk supply. On only five times forecast earnings, the dairy company's high financial gearing and strained bottom line suggests it is still one to avoid says the Times.

Cable & Wireless said yesterday that it continued to trade strongly and had nudged its earnings estimates towards the top end of consensus. Operating profits in the six months to September 30 were up by 26% to £357m, and the interim dividend was raised by 13%. The telco boasts a strong balance sheet, a highly incentivised management team and a solid 6.1% dividend yield. However, at 142p, or 15 times current-year earnings, there will be better times to buy says the Times.

Satellite operator Inmarsat shares have fallen in recent months but not because of issues with the group's underlying business. Uncertainty has mounted as to whether Harbinger, its 28pc shareholder, will make an offer for the group. While Inmarsat is not currently in an offer period, there is the hope that it could still be taken over should markets settle. Since floating three-and-a-half years ago, Inmarsat has grown its dividend by an average of 5pc annually. Buy says the Telegraph.

Majestic Wine's interim figures were poor. The business model is not bust but the consumer slowdown and increased competition from supermarkets is clearly hurting the company. Hold says the Telegraph.

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