Shares: Patience is key if you want a share of some tasty investments
Rolls-royce Our view: Buy Share price: 649p (+9p)
It comes as little surprise to us that Rolls-Royce has bounced back from its problems last November, when a Qantas Airbus was forced into an emergency landing in the wake of the near disintegration of one of the engineering group's Trent 900 turbines. The company saw £1bn wiped off its value as a result of that incident, but the shares have recovered. They have also bounced back from the recent stock market convulsions.
We were buyers at 599.5p in November and the shares have performed well for us. They were a cheaper buy a few weeks ago and, based on their earnings multiples, aren't exactly a bargain at 14.6 times this year's forecasts, falling to 13 times on the estimates for 2012. Rolls met hopes when it released its half-year results in July. As such we'd keep on buying.
Our view: Buy
Share price: 60p (-1.5p)
Good things come to those who wait, or so goes the old saw. But stock market investors appear to be in no mood to hang around Huntsworth, the public relations group.
The company said pre-tax profits had declined over the first half of the year, while its margins narrowed. Crucially, however, it added that business would recover in coming months as recently bagged accounts begin to bear fruit. The wins are "only now emerging from the lengthy client procurement process and frustratingly will only make a very small contribution to 2011 results", said Huntsworth. This delay was also behind the softer margins, as Huntsworth has been readying itself for the new business.
So far, so straightforward. But we worry about the impact of another downturn on its clients. On the other hand, it has won some good accounts and all the while, it boasts a forecast yield of around 6%. We are happy to wait for the rebound.
Our view: Buy
Share price: 290p (+4.1p)
Amid all the grim talk about the high street, it is easy to forget many businesses that rely on consumers opening their wallets on a regular basis are doing rather well.
Take the Restaurant Group, which operates the Frankie & Benny's, Chiquito and Garfunkel's brands. It showed good form in the half year to early July, growing adjusted pre-tax profits by 7.7% to £24.6m.
The group also grew its sales on outlets open at least a year by 3%, adding it had continued this momentum since the period end, despite the riots in August and downbeat consumer spending.
On a forward earnings multiple of just over 11, we think the Restaurant Group is worth a nibble.