Management nevertheless hailed a good start to 2013, as ITV outperformed its rivals in the TV ad market. The group is also busily boosting other sources of revenue, including its online, pay, and interactive businesses, as part of chief executive Adam Crozier’s five-year transformation plan.
At 14.6 times earnings and yielding 1.9%, ITV is slightly pricier than the index. Does future growth justify that? EPS growth looks promising, at 10% this year and 7% for 2014, putting the dividend yield on a progressive 3.2% by then (the final dividend was hiked 62% in 2012).
Plus there is next year’s World Cup to look forward to.
Eurasian Natural Resources Corporation
Eurasian Natural Resources Corporation (LON:ENRC) is the craziest badass in the FTSE 100.
This Kazakhstani metals and mining company has been called “more Soviet than City,” although it often looks more Marx Brothers than Marx (the Serious Fraud Office is trying to decide which).
Even the group’s attempts to diversify look dangerous, as it boldly goes into the troubled Democratic Republic of Congo and Zimbabwe.
Its share-price performance is consistently atrocious, down 77% over three years, down 42% over one year and down 33% over three months. ENRC is for gamblers, especially with the three founder “Soviet” members battling to seal a 1.6 billion pound buyout before a (recently extended) deadline of June 24.
UBS still rates this stock a buy, although the broker cut its target price from 3.20 pounds to 2.85 pounds. If you’re feeling brave, you can get the shares for 2.40 pounds today. Tomorrow’s share price is anybody’s guess. How brave are you?
I rated Serco Group plc (LON:SRP) in April, and I rate it today. In between, this hospital and prison outsourcing group has published an upbeat management statement, celebrating new contract wins and “a good operational performance across our activities around the world.”
The group’s 19.1 billion pound order book and estimated 31 billion pound pipeline of “identified opportunities” gives off a strong sense of security. So does its global reach, with strong growth in Africa, the Middle East, and Asia offsetting a recent slowdown in America due largely to government spending cuts.
At 14.1 times earnings, Serco’s rating is a little above the market average. The yield is a measly 1.7%, but cover of 4.2 times and a 20% payout hike in 2012 points to future progression. Yet the share has gone nowhere fast in the last five years, and I’m also worried about the firm’s exposure to the public sector, with government spending under pressure.
I’m watching, but I’m not buying.
Anyway, there are more exciting growth opportunities out there.
The article Should I Buy These Shares? originally appeared on Fool.com.
Harvey Jones doesn’t own any of the shares mentioned in this article, and neither does The Motley Fool.
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