Looking for some share ideas? Here's some suggestions for some safer, quality companies. My descriptions will be ultra-brief.
BATS - British American Tobacco
Beta 0.71
They make fags, in case you didn't know. It has a great dividend and great returns on capital.
DNO - Domino Printing Sciences
Beta 0.62
The make industrial printing equipment and consumables. Profits and revenues have increased every year for at least the last decade, and it doesn't look like the trend is about to be broken. A PER of 14.7 is not too demanding for this quality company. They are increasing their R&D spend, announced strong growth in thermal transfer and inkjet product, and they recently invested in TEN Media, which prints on eggs for traceability purposes. The growth prospects seem exciting, coupled with safety.
DPLM - Diploma
Beta 0.89
It operates in three business segments: Life Sciences, which supply a range of consumables, instrumentation and related services to the healthcare and environmental industrie; Seals, and Controls. The Seals sector businesses supply a range of hydraulic seals, gaskets, cylinders, components and kits used in heavy mobile machinery and specialized industrial equipment. The Controls sector businesses supply specialized wiring, connectors, fasteners and control devices used in a range of technically demanding applications.
In a recent IMS: "the Group is confident of delivering "GDP-plus" levels of underlying revenue growth."
SN. Smith & Nephew
Beta 0.83
In simple terms, it makes medical equipment, artificial knees, and dressings for wounds. ROE is a massive 21%, achieved with modest tangible gearing of 20%. It has been subject to recent takeover speculation, explaining its recent hike in share price of 14% over 5 days (Footsie is up only 3%). PER is currently 13.4, which still seems acceptable. Note that a poster that I respect highly doesn't like Smith & Nephew.
Sunday, September 4, 2011
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