News

The comfort for Woolworths shareholders is that something is happening. However, any joy must be offset by the failure of previous approaches - that of Apax two years ago or Baugur's tilt at Moss Bros - and by myriad reasons to doubt that a bid will materialise.

In the interim, the turnaround efforts of new chief executive Steve Johnson will take at least a year to show through. At 7.4p, avoid says the Times.

Shares in Hiscox have done well recently and investors should see the insurer as a safe buy, even if they are not going to make huge returns in the next few months. A longer-term punt, however, could prove to be profitable. Hold for now says the Independent.

If previous insurance cycles are a reliable guide, the bottom has not been reached until the sector's return on equity has touched zero or is even negative - thanks to a collapse in premiums or a catastrophic event. So with ROE still in double digits, Hiscox, up 5½p at 224¾p, or less than six times current-year earnings and yielding nearly 6%, is best avoided says the Times.

Broker WH Ireland is a well run group that follows its own dependable model and is undervalued, as evidenced by the number of potential suitors interested in buying it over the last 18 months. However, as a brokerage group, it is dependent on the financial markets, which the group itself says, at least in the short term, are pretty dire. Sell says the Independent.

Infrastructure India, an investment group that works entirely in the country and that only listed in June, issued its maiden trading update yesterday, saying that everything was fine and also that it has put money into two projects: a hydroelectric plant and a toll road. A punt now would be a risk for investors, but if the group's plans come off, and it is subsequently taken private, today's buyers could do very nicely. Buy says the Independent.

Raymarine makes the kind of kit every well-equipped sailor needs, from navigation devices and autopilots to radar gear and instrument panels. The rating on the shares of 5.5 times current year earnings plus the prospective yield of 8.2% - certainly looks attractive on a long-term basis. However, the short term is likely to prove difficult. Avoid says the Telegraph.

Raymarine sits at six times earnings and yields nearly 8%, but carries £82m of net debt. The chance of a fresh bid approach remains, but that is insufficient reason to buy. Sell says the Times.

Zenergy specialises in high-temperature super­conductors (HTS) -materials which transmit electricity with little or no energy loss. With energy efficiency one of the major drivers of today's economy, the company reckons its market could soon be worth almost £2bn a year. Risky buy says the Telegraph.

Michael Page trades on between 9 and 10 times forward earnings, below the larger support services sector average of 12.5, but well above UK rivals Hays and SThree. That premium reflects the company's international focus and speculation surrounding the Adecco bid. If a deal fails to materialise, Michael Page's share price will almost certainly tumble. Short-term investors should think about an early exit but once the economic cycle turns, Michael Page's prospects for growth look good and the share price could easily climb back to the near-600p levels seen last year, says the FT.
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