LONDON (ShareCast) - AZ Electronic Materials, which provides chemicals for desktop computers, tablets, smartphones and TVs, has been hit this year by a mix of company-specific and a raft of industry-specific headwinds. Disentangling those is difficult, but whereas one might have been inclined to be patient following its profit-warning in May, expectations for a second half recovery in revenues have proven over-optimistic.

Amongst the latter trends, people continue to migrate towards tablets and smartphones - rather than desk-top PCs - and these need fewer chips. Also, the TV market is flat, as the exodus from old models into flat-screens slows down. Full-year earnings should be little changed but sales will be off by 8% versus the previous year. The shares sell on 14 times next year’s earnings. This is not expensive but, given the earlier upsets, it suggests no reason to buy, The Times' Tempus believes.

During what is usually a quiet third quarter real-estate firm Segro accelerated its strategy of moving into logistics assets while disposing of tired old industrial ones. It has now sold properties worth £560m so far this year, £408m of this in that third quarter, and more than £1bn of such assets over the past two years. During that time-frame the firm has purchased properties worth about £400m and invested £300m in developing more. In parallel, over the quarter debt has been cut by £500m to £1.9bn.

About 8% of its portfolio is now in logistics. As well, rising interest in those properties being sold means that they are going out at a premium of about 6% to their book value. A year ago they were exiting at a loss. Meantime, the assets being purchased provide yields of between 6% in the UK and 8% in Europe. True, with purchases falling behind disposals, Segro can’t build up earnings and grow the dividend — and forecasts indeed suggest a flat payment. “However, this is still a bit rich given that a couple of years ago the market was fearing a cut. The shares, down 2.5p at 334.25p, are ahead of the last net asset per share figure, of 295p in the summer, which suggests a “hold”,” Tempus says.

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