| The Markets Poor economic data from the US was again to blame for falling equity markets, as it was reported that payrolls climbed by 69,000 in May, less than half that of the 150,000 consensus forecast. The Labor Department also confirmed that the nation's unemployment rate crept 0.1 percentage points higher to 8.2%. In the UK meanwhile, the purchasing managers' index for manufacturing dropped from 50.2 to 45.9 in May, its worst performance in three years. If that wasn't enough of a reason to be bearish, the British Chambers of Commerce slashed its 2012 UK growth forecast from 0.6% to 0.1%, warning that the problems of the Eurozone are certain to affect UK businesses for a considerable time. At the London close the Dow Jones was down by 215.66 points at 12,432.31 and the Nasdaq was 50.71 points lower at 2,474.16.
In London the FTSE 100 fell 60.67 points to 5,260.19; the FTSE 250 finished 211.51 points lower at 10,364.71; the FTSE All-Share lost 34.44 points to 2,732.65; and the FTSE AIM Index slipped 10.47 points to 680.48. 
Broker Notes Shore Capital reiterated its sell recommendation for RSM Tenon (TNO), noting that although the recent appointment of Adrian Martin as chairman is a positive step forward, it does not change the fact that the accountancy and advisory firm has an unsustainable debt level. The broker also believes there is the potential for a rescue rights-issue, which would be damaging to shareholder value, and with its sole lending facility coming from Lloyd's, its future is 'tenuous at best'. RSM Tenon shares closed unchanged at 5p. Daniel Stewart continues to view Victoria Gas and Oil (VOG) as a "buy" with an 8.1p price target, believing now that production at its Logabab asset is imminent, the firm see could see positive cash generation by 2013. The brokers noted the firm's 3.15 million pound share issue, which will dilute share capital by 4%, but added that with production on the way it does not envisage this to be any issue in the future should further placings take place. With a calculated net asset value per share of 11.6p, the broker believes the shares, which slipped 0.1725p to 2.925p, look very cheap. ADVERTISEMENT Latest small cap tip out now on WatsHot.com
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Just GBP73 for a year's membership by direct debit (GBP87.60 by card/cheque/Paypal) Click here to join WatsHot.com now Panmure Gordon continues to holds its "buy" stance and 304p price target on Ashtead Group (AHT), conceding there remains a buying opportunity before of the equipment rental firm's final results for the year to April later this month. A focus on higher margin specialist divisions and additional investment in fleet should have led the firm to finish the year extremely well placed the broker commented. Panmure continues to stick by its 14.06p earnings per share estimate for the period, which it adds is conservative, leaving the firm on a multiple of 16.4 times. Ashtead shares fell 18.1p to 212.2p.
Blue-Chips BT Global Services, a subsidiary of telecoms giant BT Group (BT.A) announced the sale of its French application development business to IT group Osiatis. The sale enables the firm to focus on its core strategy in France, which is to offer networked IT services and communication services to corporate customers and the government sector. BT shares fell 3.1p to 203.2p. Oil and gas giant BP (BP.) meanwhile admitted it was considering the sale of its shareholding in Russian oil company TNK-BP following indications of interest from another party. The company was formed in 2003 as the result of the merger of BP and Alfa Access Renova's Russian oil and gas assets. Under the terms of the shareholder agreement, BP was obliged to notify Alfa of the interest, although confirmed there was no guarantee that a transaction would take place. Market whispers suggested that the potential bidder could be Russian state owned oil business Rosneft or state owned gas business Gazprom. BP shares rose 7.1p to 402p. Mid-Caps Moneysupermarket.com (MONY) was on the purchasing end of a deal as it reported the acquisition of MoneySavingExpert for a consideration of up to 87 million pounds. The site is recognised as one of the UK's leading personal finance websites and in 2011 attracted circa 39 million unique visitors. Having generated EBITDA of 12.64 million pound in the year to October 2011, the purchase will cost Moneysupermarket up to 6.9 times earnings. The shares inched 0.1p higher to 116p. Edinburgh Investment Trust (EDIN) released is performance statistics for the year to March, unveiling a 9.9% increase in net asset value to 502.03p per share. The board explained that the trust's defensively positioned investment portfolio delivered substantial out-performance against the broader market, noting the FTSE-All Share dropped by 2.1% over the same period. With considerable uncertainty continued to hamper the equity markets, management believe that this strategy will continue ensure the trust performs over the current year. The shares slipped 1.9p to 466.6p. A contract to build an 800 million pound residual waste treatment facility in Essex alongside venture partner Urbaser will increase Balfour Beatty's (BBY) exposure to the growing waste sector, the company has reported. The infrastructure firm also announced the award of a 34 million pound contract to build a biological treatment facility in Yorkshire. Chief executive Ian Tyler explained that the two projects, alongside a preferred bidder status for a waste project in Gloucestershire, demonstrate Balfour's flexibility in its investment business model. Balfour shares closed 5.2p lower at 266.1p. Small Caps, AIM and PLUS Petards Group (PEG) unveiled a four-fold increase in pre-tax profits to 215,000 pounds for the year to December 2012 thanks to a 6.5% increase in revenues to 12.1 million pounds and a significant reduction in operating costs. The ruggedised computer manufacturer said its 2011 performance was driven by the first electronic countermeasure systems order from the Ministry of Defence as well as an upgrade order for the Puma helicopter life extension programme. The firm did however eye some caution to this weakening euro to sterling exchange rate, which will not be helpful to the firm's 2012 performance if the trend continues. Petards shares surged 5p to 29.5p. Internet personalisation company Phorm (PHRM) has raised 20 million pounds via a subscription for a 20% equity stake in its Phorm China operating subsidiary, which in effect values the firm at 100 million pounds, more than double its pre-announcement market cap. Under the agreement, Phorm will be licensing its know-how and technology to the purchaser, and plans to use to receipts of the deal for business expansion, marketing and general working capital purposes. Simultaneously, the firm announced its intention to re-domicile from Delaware, US to Singapore, which will simplify the settlement mechanics of its shares and improve liquidity. Phorm shares jumped 17.5p to 82.5p. Sound Oil (SOU) confirmed it is in discussions with an established oil and gas fund to finance appraisal drilling on the Strombone field in the Terrente Alvo permit onshore Italy. The group is hoping to receive a 6 million dollar unsecured loan, extendable to 9 million dollars by mutual consent, which would not be repayable should there be no production from the prospect. A recent competent persons report for Strombone confirmed an oil resource of 6.4 million barrels with a net present value of 131 million pounds. Sound Oil shares crept 0.1p higher to 1.075p. Cravenhouse Capital (CRV) has increased its stake in high-precision piping manufacturer Pressfit Holdings by 3 percentage points to 36.9% after purchasing the shares from a former shareholder for 1.3 million pounds. Pressfit has successfully obtained certification to distribute its bespoke products into the UK, EU, Hong Kong, China and Macau, and expects to receive its US certification imminently. Cravenhouse describes the company as 'possibly its most exciting investment to date'. The group's shares rose 0.1p to 0.575p. An 18% jump in oil and gas production and a 66% reduction in pre-tax profits to 3.91 million pounds at Leni Gas and Oil (LGO) was not enough to impress the market as shares in the company fell by 0.125p to 0.675p. Despite the group's Spanish assets showing a 44% surge in production to 50,472 barrels of oil equivalent (boe), this was partially offset by a fall in production in Mexico from 12,913 to 7,639 boe. This year the company plans to start operations at the Goudron field in Trinidad, which could see its current production of 50 barrels of oil a day (bopd) surge to 400 bopd within twelve months. | 
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