We turn our attention to stocks trading on single-digit PEs to identify those worth buying and those which are cheap for a very good reason

Upgrades to drive Walters

Recruitment agent Robert Walters (RWA) says the UK jobs market recovery has only just begun, adding that employment gains historically lag economic growth. Analysts are now starting to upgrade earnings forecasts, helped by a good performance in Asia, which should help justify the high valuation. (DC)


XP worry for Computacenter

Worries that the corporate Windows XP upgrade cycle may be running out of steam could put UK IT services supplier Computacenter (CCC) on the backfoot. The group reported strong supply chain revenues between January and March but a half-year pre-close update (17 Jul) is worth watching for future guidance. (SF)


Wincanton margin focus

Investors will be keen to scrutinise a trading update on 16 July from West Country logistics specialist Wincanton (WIN) to check for further progress with underlying margins which increased by 20 basis in the year to March 2014, thanks to cost reductions. (SFl)


Cash call signals SRT boost

Martime navigation and identity kit supplier Software Radio Technology (SRT:AIM) could be on the cusp of signing several new contracts after raising an extra £1.5 million for working capital. The fund raise comes despite having £1.3 million of net cash on the books as of the end of March. (SFr)


Threat to Seeing demand

Demand for Seeing Machines’ (SEE:AIM) fatigue management kit is reckoned to be under threat by some analysts. German vehicles giant Daimler (DAI.DE) is working on semi-automated self-driving technology for heavy goods vehicles, although it seems years away from launch. (SFr)


Oxford Pharm’s profit case

Milestone payments and the imminent launch of a new calcium and vitamin D chew could help Oxford Pharmascience (OXP:AIM), strengthening the case for a move into the black next year. The £44.4 million cap, which improves existing treatments, is forecast to make £2.5 million pre-tax profit in 2015, rising to £8.6 million in 2016. (MD)



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