Wednesday newspaper tips round-up: BP, St.James´s Place

At what price might BP be forced to cut its dividend? That´s not what matters, the Financial Times´s Lex column said. Indeed, rival Eni reduced its payout but its stock has outperformed that of its rivals so far this year.

The UK oil giant told investors that at $60 per barrel it can maintain its investment and its dividend payments. However, that was not a forecast, but a conditional statement rather. "BP has no idea what oil or natural gas prices aregoing to do. No one does," Lex pointed out.

Production and reserve replacement has been creeping down. Asset sales and looser limits on its financial gearing can helpthe company to prop up production should crude remain shay of that level.

Nonetheless, those are 'one-offs', they are not repeatable. What matters is the price at which production is cut. "Payouts keep the passengers happy; production keeps the ship afloat," the FT´s Lex column warned.

Teettering stockmarkets the world over took some of the shine of St.James´s Place but in the three months to 30 September the firm continued to see strong inflows from investors, as it has for years.

In the third quarter those rose by 17% to reach £1.48bn, aided by the company´s "high" 95% retention rate, The Times´s Tempus said.

Talent drain as competitors poach its experienced advisers has been partially offset by having a network of agents offering face-to-face advice, especially in the aftermath of the pensions reforms. The company has room to grow significantly by focusing on expats in Hong Kong, Singapore and the Gulf. Its recent acquisition of Rowan Darlington, the Bristol-based stockbroker, should also extend its reach in the UK.

The stock is not "cheap", it trades at a premium of approximately a third of its embedded value.

Nonetheless, "this might be a good time to buy, given recent weakness in the share price."

"Buy", Tempus says.