Shares digital

Cape (CIU:AIM) 247.5p

The industrial services group is to beat market expectations for full-year profit after record business levels in the first half of 2007 continued throughout the year. (Read the full story: www.sharesmagazine.com/node/2791)

Shares says: The stock has slipped back as more debt was taken on board from several acquisitions to strengthen its position in Australia. But this year marks the dawn of the revived business in its enlarged state. Expect to see gains in North Africa and southern Mediterranean as it prepares to launch another regional arm. The main market beckons in the summer. The shares look very cheap given recent trading success and growth potential over the coming years. BUY

Telegraph says: Cape, the oil services company, appears to have had a good 2007 and its statement that 2008 was looking good too had analysts upgrading their forecasts by up to 10% last week. With its main oil & gas markets unlikely to slow in 2008 and upgrades likely as the company builds its position in the Pacific Rim, the shares look poised for a run. Trading at a discount to rivals such as John Wood, Cape shares are a good bet in a difficult year. BUY

The City - Numis says: Cape should perform well in 2008 if it delivers on cash generation and synergy benefits as it is in defensive growth markets (blue collar essential services to the Oil & Gas sector). Risks include contract start-up delays and integrating acquisitions. We anticipate upgrading 2008 EPS when the full-year results are published in March, when they will quantify synergy benefits of Australian acquisitions. BUY

Reader - Anvil Cain says: Martin May was brought in to save the business and subsequently accepted the offer to become chief executive. Now the turnaround is just about complete, let’s hope he doesn’t get bored and move to pastures new. He is a solid asset to Cape.