News

Wolseley is at the mercy of a depressed housing market and there are doubts about shareholder returns after the final dividend for 2008 was scrapped.

The company is now trading at seven times earnings after a 61pc fall in its share price during 2008 but it still faces too many questions in the short term as it fights to remain within its covenants - a process that is almost certain to involve more pain rather than any gain. Avoid says the Telegraph.

Worth over £43 last July, platinum miner Lonmin fell to 1575p the week after Xstrata abandoned its 3300p a share offer in October. But the global slowdown is still gathering pace, and Lonmin must brace itself as businesses around the world cut back on their consumption of commodities like platinum. Carmakers, the biggest industrial customers in the platinum market, are a case in point. Hold says the Independent.

Storage group Big Yellow's figures yesterday looked especially bad as the group wrote down £60.6m in the value of its property assets. Executive chairman Nick Vetch is also downbeat, saying that the whole sector will need to tread water for some time. Investors should not be advised to buy the shares of companies that are finding things a bit tough. In a few months, however, Big Yellow may get a big bounce but hold for now says the Independent.

Electronics group Laird yesterday warned that worsening economic conditions would lead to disappointing revenues and profits in the fourth quarter of this year and that the numbers would be "very significantly below" those recorded last year. House broker Cazenove says the company is in no worse shape than other groups in the sector, which is probably true. This is not, however, the vote of confidence that investors would be looking for. Sell says the Independent.

ICAP is the world's largest inter-dealer broker. It makes its money in the form of commissions by acting as an intermediary to commercial and investment banks in the wholesale financial markets. By doing this it helps provide not only liquidity but also anonymity. Trading on a price earnings multiple of just over seven, ICAP looks attractive. Buy says the Telegraph.

Premier Foods' sales were up 9% on last year in the four months to October and a £113m cost-cutting programme is drawing to a close. But the company's debt is nine times its current market capitalisation and the Telegraph doesn't feel comfortable recommending shares in such a highly leveraged company at the moment. Avoid.
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