Buy Schroders (SDR) by Henry Dixon in MoneyWeek CLOSED

Tip Notes

Are STV shres too cheap? They trade on five times this year's expected earnings. At 144p per share, STV has a marketing value of £56m. Add net debt of £45m and a pendion fund deficit of £18m, and the whole business can be bought for £119m. A buyer would get back £17mof operating profit - a pre-tax return of 14.3%. Could that tempt ITV to buy STV? A sharp fall in TV advertising revenue would hurt STV, but nonetheless the shares may be worth a gamble.\\nPhil Oakley - Moneyweek