19 January 2003 17:38
Ones to watch
SIX CONTINENTS THE former Bass group is splitting its hotels operation from the pubs and restaurants businesses and
returning GBP700million cash to shareholders. The hotels have underperformed against peers leaving plenty of room for
improvement but unstable conditions have dimmed prospects for the hotel industry while the profits warnings from JD
Wetherspoon and financial problems elsewhere have led to a more cautious approach to the UK market. At 11 times forecast
earnings the shares, 500p, do not look expensive but there is better value elsewhere.
PETER HAMBRO MINING INVESTORS' flight to gold amid fears of a war against Iraq has pushed the metal's price
to a six-year high and boosted Peter Hambro Mining. The company has increased to 98 per cent its stake in its main
asset, Pokrovskiy Rudnik, which operates three deposits in Russia. A new mill has increased gold recoveries and enables
all-year production. PHM's Russian Pioneer deposit holds exciting growth prospects and it has brought on board
several new institutional backers.
Despite a strong rise the shares are worth tucking away at 134p.
MERCHANT RETAIL THE RETAILER failed to come up smelling of roses despite what appeared an encouraging trading update
showing an 8 per cent rise in like-for-like sales. Its Perfume Shop business performed very strongly and w hile its
department store Jopling's suffered a slowdown in same-store sales, analysts are still looking for an improved
bottom-line performance.
The company remains bullish and w hile shares on more than 13 times forecast earnings are not the cheapest in the
sector, the solid track record should attract buyers at 111 kp.
TIBBETT & BRITTEN LOGISTICS group Tibbett & Britten has started the year on the up after a particularly tough
2002 when its shares lost more than half their value from a spring peak. Trading remains difficult but the business has
a strong position in the domestic market as well as high-growth opportunities across the Atlantic, which contributes
half of the group's earnings. Tibbett may not offer the smoothest of rides but a dividend yield of more than 6 per
cent and an undemanding rating should attract speculators at 427 mp.
[UKIR [UK & Ireland Intelligence Wire]] |
RUSSIA IN FACTS
