@uk (LON:ATUK) (ATUK, 4.375p, £2.84m) has launched an e-procurement package with BarclayCard Commercial that offers participating universities guaranteed cost savings. The launch follows news that the Higher Education Funding Council had earmarked up to £6m for an e-procurement fund, £5m for individual universities to establish an emarketplace and £1m for a generic emarketplace for the 129 Higher Education Institutions. With the funding offers sent to the universities they are about to enter the procurement stage with an estimated £2m- £3m to spend. With clear hope for good news in the short term we move the shares to a HOLD.

Communisis (LON:CMS) (CMS, 29.0p, £40.19m) The IMS for Q3 ended 30 September 2010, for the marketing services provider, is in line with full year expectations. The Intelligence Driven Communications has continued to grow, with the Specialist Production and Sourcing making good progress. The market forecasts 2010 PBT of £5.8m, EPS of 2.9p and DPS of 1.4p. The stock trades on 10x 2010 earnings falling to 9x in 2011. The prospective yield of 4.8% for 2010 is compelling and a key attraction to the stock.  However, we are not sure whether to the latter is sustainable.   Our key concern is the bill and cheque printing business which is inevitably winding down, driven by Government legislation. We believe the stock is fairly priced and reiterate our HOLD recommendation.

Cosalt (LON:CSLT) (CSLT, 3.63p, £14.68p) has confirmed it has had an approach for its Marine business. As we highlighted on the recent offshore division warning the group could be vulnerable to an opportunistic bid – this may be the start of the process. On an ongoing basis we see the group as fairly rated – but the opportunity for outperformance on speculation encourages us to a SPECULATIVE BUY.

Dods Group (LON:DODS) (DODS, 7p, £10.65m) The takeover talks have terminated – expect short term weakness but we still see value in the UK’s leading political communications group, so we maintain the SPECULATIVE BUY recommendation.

Eckoh Plc (LON:ECK) (ECK, 7.0p, £13.98m) has secured its first three year contract with RCI Financial Services (subsidiary of Renault S.A), for the provision of payment solution utilising speech recognition…

Unlock the rest of this article with a 14 day trial

Unlock with Email
Unlock with Google

Already have an account?
Login here