| Competition The winner of August 27th's competition (Richard has been on holiday) is Clive Austin whose caption (below) has been voted the funniest. Watch out for another contest at the end of the week.. 
"China may have slowing growth but it hasn't affected we Japanese!" The Markets The weekend did not get in the way of the bullish market sentiment seen last week as shares in Europe and the US continued to climb higher. Italian Prime Minister Mario Monti warned of a break-up of the Eurozone if greater efforts are not implemented soon to combat the regions spiralling debt crisis. Monti argued that disagreements between members of the 17-nation euro area over the next steps to be taken are only delaying policy action from the European Central Bank. Meanwhile, In a separate statement, the head of Italy's central bank, Ignazio Visco, insisted his country did not yet need a bailout. At the London close the Dow Jones was up by 73.33 points at 13,169.50 and the Nasdaq was up by 22.99 points at 2,698.99.
In London the FTSE 100 rose by 27.98 points to 5,815.26; the FTSE 250 finished 125.26 points ahead at 11,426.40; the FTSE All-Share gained 16.73 points to 3,017.24; and the FTSE AIM Index rose by 3.96 points to 680.29. 
Broker Notes Daniel Stewart retained its "buy" stance for Playtech (PTEC) with a target price of 450p. While the poker market has remained difficult, the broker expects the online gambling software developer to report strong first half growth across its other markets, forecasting EBITDA of over 40 million euros (31.7 million pounds) for the period. Additionally, Daniel Stewart expects the shares to gain a boost from the company's inclusion in the FTSE 250 index from September. Playtech shares jumped by 15p to 360.5p. 
Singer Capital reiterated its "buy" recommendation for Creston (CRE) with an 80p target price. The broker said that French advertising group Havas has acquired a 5.18% stake in the marketing advisory firm, which likely to lead to speculation over a possible takeover bid. Singer noted that the marketing sector is in good health, with large companies looking to invest their cash. On the broker's forecasts, the shares trade on an EV/EBITDA multiple of 3.6 times, which it claims is half average price of larger peers. The shares flew up by 5.25p to 75.63p. Seymour Pierce maintained its "buy" recommendation for Capital & Counties Properties (CAPC), with an increased target price of 233p, from 220p. The broker expects the property developer to finish the 2012 financial year with a net asset value of 191p, rising to 214p by the end of 2013. Seymour Pierce noted that the firm's Covent Garden and Great Capital Partnership estates have outperformed and the broker added that if outline planning approval is given for the firm's proposed Earls Court project it could be a significant share price catalyst. The shares inched up by 0.6p to 218.9p. Blue-Chips Randgold Resources (RRS) has successfully opened the Gonkoto gold mine in Mali, the company's fourth in the country. The project is operationally linked to the firm's nearby flagship Loulo complex, which is also currently expanding and the group believes will become one of the largest gold mining operations in all of Africa. Canaccord Genuity expects production at the Loulo complex to rise by 24% in the second quarter to 120,000 ounces, benefiting from higher grades and the start-up of a third mill. The broker also forecasts 27% growth at the Tongon project to 60 thousand ounces and added that the shares trade on a prospective net asset value multiple of 1.2 times for the full year. The shares advanced by 165p to 5,960p. 
Mid-Caps Telecity Group (TCY) reported pre-tax profits of 40.1 million pounds for the six months ended 30th June, up 18.2% year-on-year, as available and announced customer power rose to 76MW and 124MW from 59MW and 112MW, respectively. During the period, the datacentre provider entered the Finnish market through the acquisition of Tenue in August. As a result of the strong performance, the firm announced a maiden interim dividend, of 2.5p. Shares in Telecity climbed by 39p to 877.5p. Insurance provider Catlin Group (CGL) achieved a pre-tax profit of 231 million dollars (148 million pounds) for the half year to 30th June, compared to a loss of 201 million dollars (128.8 million pounds) in 2011's comparable period. The firm noted an 86% combined ratio, with record net underwritings of 443 million dollars (283.8 million pounds). The company added that its London hub reported growth for the first time in five years. The shares grew by 11.3p to 443.3p. 
WS Atkins (ATK) has won two contracts from National Rail as part of the Cardiff Area Signalling Renewal project, worth a combined 64 million pounds. The engineering group will install signalling and power distribution equipment over 192 miles of track between Newport and Port Talbot, with work expected to be completed by 2015. The company noted that the deal is similar to its 400 million pound contract wins in January for two signalling project frameworks in Sussex/Wessex and Kent/Anglia. WS Atkins shares gained 18p to 686p. Hydrocarbons explorer Heritage Oil (HOIL) saw net losses grow to 52.2 million dollars (33.4 million pounds) for the six months ended 30th June from an 11.4 million dollar (7.3 million pound) loss in the first half of 2011. The group added that it plans to raise 370 million dollars (237.1 million pounds) through a rights issue, in order to help finance its entry into the Nigerian market. Together with a 550 million dollar (352.4 million pounds) loan, Heritage will use the funds to acquire a 45% stake in the OML 30 lease, which is currently producing 35,000 barrels of oil per day, and plans to increase the rate to 55,000 bopd. The shares were unchanged at 123p. Small Caps, AIM and PLUS The board of 3D Diagnostic Imaging (3DD) has made the decision to de-list the company from AIM as part of a major programme to reduce the firm̢۪s outgoings. With the capital markets in their current state the directors of the 3D technology business feel there is next to no scope for raising cash and therefore little reason to be a publicly listed entity. As part of the agreement, chief executive Graham Lay and chief financial officer Oliver Cooke have agreed to reduce their annual remuneration by 60% and 80% respectively. The shares plunged 0.175p to 0.15p.
Falkland Oil and Gas (FOGL) confirmed the Loligo exploration well 42/07-01, located approximately 200 kilometres east of the Falklands Islands, was spudded in August. FOGL is the operator of the well, the first of a two well exploration programme using the Leiv Eriksson semi submersible rig, the firm holding a 75% stake in the respective licence alongside Edison International Spa. Falkland added it hopes to conclude well operations at Loligo by the start of October. The shares rose 10.25p to 85.25p.
Staying in the natural resources sector, Mediterranean Oil and Gas (MOG) believes the drilling ban on offshore Italy may soon be overturned by a change in law approved by Italian parliament last week. An overturn of the ban would allow the business to seek award of a production concession covering the Ombrina Mare oil and gas field based upon an application previously submitted in 2008. Once confirmed, management said the company would provide an update to investors on how it intends to develop the concession and bring it to production. Mediterranean Oil and Gas shares jumped 1.125p to 13p. 
Proton Power Systems (PPS) has signed a co-operation agreement with German peer Modl GmbH to address the need for interruption-free and energy efficient storage for the stationary power supply market. This is a particular issue in Germany given the recent shutdown of nuclear power stations and the growing reliance on renewable energy supplies which are intermittent requiring increased storage. Modl, Proton's sales partner in southern Germany, has many years' experience in the market and a large customer base for stationary power supply, and should a relevant product result from the agreement Proton would be in a strong position to benefit from this base. Proton Power shares closed 0.125p higher at 2p. West Africa focused Stellar Diamonds (STEL) provided an update on bulk sampling from the Katcha Dyke at the Droubja project in Guinea, confirming that to date it now has collected 299 dry tonnes of kimberlite. The processing of the first 92 tonnes yielded 173 carats with the largest gem quality diamond recovered to date measuring 5.55 carats. Management believes that early indications show the Katcka Dyke has potential to add significant carats to the overall Droujba kimberlite resource. Stella Diamonds shares closed 0.375p ahead at 3.5p. Tantalum miner Noventa Limited (NVTA) was quick to appoint two new members to its board, following the resignation of two directors and resultant suspension of its shares last Thursday, appointing Jose Luis Nunes de Barros as chief financial officer and Declan Sheeran as an executive director. Under AIM rules, companies require a minimum of four directors to continue trading, and so with the appointment of two new members to the board the shares were re-admitted to the market. The troubled firm was also able to seal a new 16 million dollar debt facility, albeit with an annual interest rate of 25%. Noventa shares rocketed by 3.125p to 4.1p. | 
No comments:
Post a Comment