UK Stocks and Share tips
Top
of the Tips: Share Recommendations 29/12/2006
Buy
Rightmove
The
property search site has reported first-half revenues of
£15m – double the same period last year. Similar
results are expected for the full year. Rightmove are benefiting
from the growing market penetration of home broadband alongside
the growing demand for online property searching.
Although
their shares are currently trading at 22 times forecast
2007 earnings, this reduces to 16 times forecast 2008 earnings
and is a justified premium.
Buy,
says The Telegraph.
Playtech
Online
gambling operator Playtech already runs the online poker
operations of Paddy Power, Victor Chandler, Bet Fred and
Bet365, giving them a firm foothold in the European market
and avoiding any significant exposure to the troubled US
online poker market.
Playtech
are now concentrating on the Asian market, and have partnered
with Sino Strategic International (SSI), an Australian investment
group to launch an online poker venture in China.
The
Chinese have a reputation as keen gamblers, and this pilot
will make Playtech's software available in 600 outlets across
Shanghai, allowing punters to play Texas Hold'em poker online.
Playtech
are hoping that success for this scheme will open the door
to online betting on traditional Chinese games, which is
not currently available, and further expansion into other
regions of China.
Trading
at 14 times their 2007 forecast earnings, Playtech look
good value.
Buy,
says The Times.
Sell
HMV
HMV
appear to be caught between the proverbial rock and a hard
place. The combined attack of discounted volume sales by
supermarkets and the convenience and choice of online CD
and DVD retailers is taking its toll on the high street
giant.
It's
hard to see any potential for growth and the promised 5.2%
dividend does not look entirely secure.
Sell,
says The Times.
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