■ Shares in TUI Travel, our highest-yielding stock, may well prove to be cheap for a reason at the moment: its exposure to UK discretionary consumer spending, high oil prices and political unrest. Also, the gearing figure in our table is based on annual results and captures debt levels at a seasonal low point; at the recent half-year results, gearing was 63 per cent. There's also the chance that parent company Tui AG will take it private, though.
Last IC View: Sell, 168p, 10 Aug 2011
■ Playtech's attractions as a software provider to the online gambling industry have been somewhat overshadowed by questions over corporate governance and its €140m acquisition of an affiliate in March this year. However, trading has been robust and acquisitions mean it is able to offer clients a broader range of services. Regulatory uncertainties are relected in the undemanding valuation.
Last IC View: Fairly priced, 302p, 25 Aug 2011
■ Retailer WH Smith has been growing steadily for some time with its tactic of switching from low-margin sales in its domestic market to high-margin international sales. Fatter margins have meant rising profit despite lower sales. Net cash was £70m at the end of the half year and the dividend looks very attractive.
Last IC View: Buy, 516p, 8 Jul 2011
■ Photobooth maker, Photo-Me International, not only boasts a strong record when it comes to cash flows but it also had £41m net cash on its books when it last reported. Despite near flat sales the group has performed well recently thanks to greater efficiency, and managers are investing in new products.
Last IC View: Buy, 59p, 30 Jun 2011
■ Thermal processing specialist Bodycote has been in recovery mode since it severely cut costs in 2009. Progress has been helped by strong demand from emerging markets and the group's focus on key proprietary technologies. Operational gearing is high, so profits will suffer if sales drop, but past cash flows are encouraging and the dividend was maintained throughout the credit crunch.
Last IC View: Fairly priced, 385p, 28 July 2011
■ As well as owning this magazine, Pearson has a large presence in the education market where it now derives about three quarters of its revenues. While tight government budgets in North America held back sales in the first half, the group remains confident about prospects. Meanwhile, the rest of the business, which includes the FT newspaper and book publisher Penguin, is benefiting from growing digital sales.
Last IC View: na
■ Soaring raw material prices and distribution problems in Asia have provided Zotefoams with headwinds this year. However, the company has made gallant progress by increasing selling prices while also pushing volumes ahead. Supply issues should start to ease in the second half and the group started reported a good order book at the interim stage.
Last IC View: Buy, 147.5p, 2 August 2011
■ With bank shares plummeting around the globe, selling financial software hardly looks the best market to be in, so it is not surprising that Fidessa's shares have been suffering. Revenues recently fell short of City expectations for the first time in nine years. However, Fidessa is hoping to benefit form increased regulation and it has net cash of £55m, which is a big comfort.
Last IC View: Sell, 1,590p, 18 Aug 2011
■ While recruitment firms are highly cyclical, they do tend to throw off cash when trading goes quiet as they have big working capital requirements in buoyant times. Robert Walters' roots in financial recruitment are worrying, but its significant exposure to fast-growing overseas markets is a plus.
Last IC View: Fairly priced, 312p, 5 Aug 2011
■ Nervous market conditions can encourage investors to look to wealth managers, such as Brooks Macdonald, for help managing their money. But falling markets also have the negative effect of reducing the value of assets under management - and therefore fees - and driving some investors out of the market altogether. So while Brooks established a strong track record during the last recession, shares are down heavily since the recent sell off.
Last IC View: Good value, 1,135p, 16 March 2011
■ Domain registration and management is underpinning steady growth from Group NBT, which recently upgraded forecasts and is splashing the cash on acquisitions. Liberalisation of the domain name market is helping the business and the group says the market in general is improving.
Last IC View: Buy, 430p, 10 Aug 2011
■ Prior to the market sell off, chip designer ARM wowed with a strong set of second quarter numbers. However, as the prospects of a global recession threaten to hit the sale of electronic goods the shares have fallen back. On the plus side, speculation that the group would make an attractive bid target for a larger rival, such as Intel, has given the shares a bit of oomph.
Last IC View: High enough, 604p, 29 Jul 2011
