Irish stocks - where do they stand?

Sunday Business Post - June 13th 2010
by John Mattimoe, Senior Portfolio Manager, Appian Asset Management

John Mattimoe of Appian Asset Management tipped DCC as a high quality business with proven management.

"The group has opportunities to make further investments in its businesses which will generate high rates of return," he said.  "In particular, many of these opportunities will be in its core energy distribution division which generates the highest return on capital within the group".

He said DCC would continue to be a consolidator in the fragmented British oil distirbution market, while it could replicate its successful British strategy in Europe.

"Prospects for average earnings growth of 8-10 per cent annually over the next five to seven years are underpinned by improving returns in the current business units, integration benefits from recent acquisitions and from future acquisition moves," added Mattimoe.  He also said that DCC was attractively valued and offered a dividend yield of 3.7 per cent.