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SUNDAY TIPS; In association with BUSINESS.

Byline: BILL GLEESON

SUNDAY TELEGRAPH

Its niche positioning in air-to-air refuelling and oxygens makes defence group Cobham (208.75p) an attractive target for the likes of GE or Northrup Grumman. The company has a low valuation and a significantly under-geared balance sheet - it has net cash.

It has one of the lowest valuations in the sector, trading on a price earnings ratio of 15.4 times against the UK sector average of 16 times. Despite the 60%-plus gain in the past three years we think readers should sit tight. Recent first-half results from leisure conglomerate Whitbread (pounds 17.30) were fairly positive. Its budget hotel chain Premier Inns produced improved profit growth, while average profits per pub were up 23% on last year.

Braemar Shipping Services (446p) offers pure exposure to one aspect of globalisation - the growth in shipping. Recent interim results showed a 42% jump in pre-tax profits to pounds 7.1m with the dividend raised by 19% to 8p a share.

So long as global trade continues to increase, demand for shipping will do likewise. Buy.

CRH (27.50 euros), the international building materials company, has been benefiting hugely from the global construction boom, although this has not always been reflected in the company's share price.

Since the start of July shares are down nearly 40% on the back of worries the credit crisis will hit the building industry in the US.

Analysts' target price for the group range around the 37 euros to 40 euros mark, while the company is trading on a price earnings ratio of 10.7. We think the sell-off is overdone and the company will continue to ride the wave of high commodity prices. Buy.

MAIL ON SUNDAY

Software Radio Technology, which listed on the Alternative Investment Market two years ago, provides vital kit for special mobile phones and makes devices used to identify ships when they go to sea. The phone technology, known as Tetra, is used by the police, other emergency services and the military.

The company has been loss-making to date, but it should begin to deliver profits in the current year. SRT's managing director SRT has huge potential and if Tucker delivers, the shares, currently at 45.5p should go far, but this is not for cautious investors.
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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Oct 29, 2007
Words:380
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