News

Most of the watchers of speciality chemicals group Croda reckon the share price will head towards £7 in the next year and, combined with the numbers yesterday, the undervalued stock and the cash-generative nature of the company, Croda should be a banker for investors.

A defensive company with genuine growth potential in the next 12 months. Buy says the Independent.

Croda's focus on innovation, including the intellectual property rights to some of the key "anti-wrinkle" elements in face creams, should allow it to stay at the front of the pack. On just over 10 times earnings it's well worth a play. Buy says the Telegraph.

Sir Crispin Davis, the chief executive of information and events group Reed Elsevier, is finally making way for a successor, with former Taylor Woodrow chief executive Ian Smith taking over. Reed's share price responded well to the appointment but with Reed now trading on 10 times forecast earnings for next year, it's a case of wait and see how he does. Hold says the Telegraph.

Punch Taverns shares are up 60% in the past week as investors have noted that it is not about to sink under the weight of its £4.5bn of debt. However, with a recession looming it may take some time for the stock, even trading on only 2.5 times' 2009 earnings, to show a sustained recovery. Hold says the Times.

Umeco, like other civil aviation stocks, have been at the sharp end of selling in the capital goods sector, hurt first by fears of the impact of high oil prices on their airline customers, and more recently by concerns that difficulties in financing new aircraft will decimate the order books of Airbus and Boeing. On seven times earnings, there is no hurry to buy says the Times.

Engineering and construction group Balfour Beatty spends 76% of its time working on public sector projects. As the economic downturn starts to bite, buyers will increasingly move to perceived safe havens such as Balfour Beatty as a place to park their cash. Buy says the Independent.

Wetherspoon, the budget pub chain, announced a surprise yesterday, saying that like-for-like sales in the last quarter were up 1.5 per cent, arguably as drinkers leave their own local and head for a cheaper pint elsewhere. But trading on a price-earnings ratio of 9.9 times, Wetherspoon shares are the most expensive in the licensed retail sector. Sell says the Independent.
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