Tuesday newspaper share tips: Rightmove, Next

Rightmove shares have jumped nearly twelve-fold since their stockmarket debut in 2006 but are likely to continue trading near record multiples, the Financial Times´s Lex column said.

The company would seem to be the exception to the rule that excess profits attract new competitors, resulting in them being whittled away.

Indeed, far from shrinking, its "juicy" margins continued to expand even as sales increased by 22% per annum since its shares floated in 2006.

Its 80% share of the market means estate agents are left with no option but to use its services, showcasing so-called 'network' effects, the tipster explained.

Since its site is free-to-use for retail clients and the monthly fee it charges agents is small, there are no incentives to cut back on using it.

As well, the company´s selling and general expenses - the largest component of its operating costs - have only tripled since its initial public offering in 2006, whereas sales have multipled by six.

There is little in slight to slow down the juggernaut, Lex said.

A housing slowdown might just do the trick, yet it would need to be prolonged enough to reduce the number of estate agent clients in order to have any lasting effect.

Yet the number of real estate agents was heading in the opposite direction.

So while the stock is trading at its highest multiple of earnings in recent history, "it is hard to see that changing", Lex concluded.

At its latest full-year results, Next boss Lord Wolfson of Aspley Guise didn´t tell the market anything it didn´t know.

Namely, people are feeling insecure and when do they have cash on hand splashing out on clothes rather than spending it on eating out.

However, when such remarks trigger a 15% drop in the share price then either there is "something very wrong or investors are staring at open goal," The Times´s Tempus argued.

One prominent bear is worried about the firm´s Next Directory unit.

Nonetheless, the fact that net interest income has been rising over the past four years suggets those leaving are not spending much in any case.

The spread between analysts´ forecasts is wide.

Nonetheless, the company is likely to return more than the expected £200m to investors this year - via special dividends - and at 16.9% margins are respectable enough, Tempus said.

Trading on 13 times earnings the stock looks to 'cheap', so 'Buy' Tempus says, "the share price fall looks wildly overdone".