News

Shares in Irish building materials giant CRH have fallen nearly 20% this year on US housing concerns, although they rose 0.66 cents yesterday to €30.96.

They are trading at about 12 times predicted earnings per share for the full year, lower than valuations on recent takeovers for its sector peers. US housing may remain patchy but CRH is built for growth. Buy says the Times.

Vernalis's investors were groaning again yesterday after the departure of the biotech's well-regarded development chief. But it would be unwise to write off Vernalis. If menstrual migraine treatment Frova is approved, the shares are set to enjoy a big bounce. While approval for Frova is vital to quell a cash burn, for those willing to punt, Vernalis is a risky buy says the Times.

Set against a tough global market for book publishing, Quarto's interim pretax profits rose 26% to £500,000, while a weak US dollar pulled revenues down 5%to £36.6m. New acquisition MBI should also be a good fit for Quarto's range of profitable special interest titles. Hold says the Times.

Oil services group John Wood been the subject of takeover talk, which has helped underpin the share price, which hit a 52-week high yesterday. Even though the bid speculation seems to have ebbed and the shares are now firmly supported by strong fundamentals. Wood trades on a forward multiple of 18 times, around a 7% discount to some of its peers. Hold says the Telegraph.

Packaging group Bunzl generates strong cashflow so it has plenty more left in the tank for further deals, and management is looking to emerging markets for its next spree. On 16 times earnings, yielding 2.7%, the shares are not cheap. But for the long-term, patient investor they are well worth holding on to. Hold says the Telegraph.

Bunzl's management has an excellent track record of delivering on its promises and effectively integrating and improving margins via acquisitions. Bunzl is a low-risk, well-managed company that should find a place in any long-term growth equity portfolio. Buy adds the Independent.

Vehicle renter Avis Europe shares look slightly expensive, trading on over 16.5 times forecast 2008 earnings, given the fact that the company is in the middle of a turnaround programme and still has much work to do. But given the dramatic fall in the share price much of the downside looks priced in. Hold says the Independent.
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