From UK-Analyst.com: Monday 26th November 2012
Competition
Congratulations to Tony Quigley whose caption (below) was voted the funniest and has won the UK-Analyst Friday competition. Watch out for another contest at the end of the week. 
"God bless you, and all other turkeys who voted for me." The Markets The next Governor of the Bank of England will be Mark Carney, current governor of the Canadian central bank. In a surprise choice to replace Sir Mervyn King, who steps down in June, Chancellor George Osborne said that Carney will bring "strong leadership and external experience the Bank needs". Elsewhere, a study by the Institute for Fiscal Studies (IFS) revealed that the UK could face austerity until 2018 if the recent deterioration in growth prospects and tax receipts turns out to be more permanent than first thought. The think tank suggests that George Osborne may have to find another 11 billion pounds from tax rises or spending cuts if the economy does not improve. Carl Emmerson, deputy director of the IFS, said that if the economy continues to worsen then "Mr. Osborne would need to announce yet more tax rises or spending cuts for the next parliament in next week's Autumn Statement." Meanwhile in Europe, talks are continuing between ministers over the next installment of bailout funding for debt-stricken Greece. The country is due around 25 billion pounds in bailout loans but Eurozone members are so far at loggerheads on how to deal with Greece's debt in the long-term. Over In Egypt, shares plunged 10% amid President Mohammed Mursi granting himself significant new powers. Under the new laws no authority can revoke political decisions and there is a ban on judges dissolving the assembly, which is drawing up a new constitution. Trading was suspended for 30 minutes shortly after the announcement but shares continued to slide afterwards. At the London close the Dow Jones was down by 104.96 points at 12,904.72 and the Nasdaq fell by 12.12 points to 2,627.47. In London the FTSE 100 decreased by by 32.42 points to 5,786.72; the FTSE 250 finished 45.33 points down at 11,843; the FTSE All-Share lost 15.88 points to 3022.89; and the FTSE AIM Index was down by 3.05 points to 690.85.  Broker Notes N+1 Singer reiterated its "buy" recommendation on Tullow Oil (TLW) with a target price of 1,370p. This comes after the firm announced success at its 50% owned Twiga South-1 exploration well in Block 13TT, onshore Kenya, discovering 30 metres of net pay. The broker acknowledges that this news is no great surprise but still highlights how it de-risks the asset. The exploration firm is also due to start drilling on two other prospects in the region in December and the broker sees this as further reason for optimism in the short to medium term. The shares were down by 27p at 1,366p. Shore Capital has stuck with its "sell" recommendation on Morrison Supermarkets (MRW). The broker believes that the company has disenfranchised its core shopper by changing its focus too quickly through fresh formats and range reviews, pushing customers to move upmarket to a different supermarket. The broker goes on to state that it believes that Morrisons has continued to lose market share, as customers try something new at Aldi and Asda and believes this is reason enough to maintain its "sell" stance. The shares slipped down by 0.9p to 260.8p. Canaccord Genuity has maintained its "buy" recommendation on SQS Software Quality Systems (SQS) with a 12% increase in target price to 291p. This reiteration comes after an "upbeat" trading update last week, where several new contract wins were announced and good progress revealed in the US and Japan. The broker is also impressed with the reduction in net debt on the company's books following strong cash generation in recent times and backs the firm to continue with this promising trend. The shares remained flat at 225.5p.
________________________________________________________________________
ADVERTISEMENT OCADO - TARGET PRICE 0p? - CLICK HERE FOR THE REPORT
________________________________________________________________________
Blue-Chips Investment firm Aberdeen Asset Management (ADN) announced an 11% increase in revenues to 869.2 million pounds for the year ended 30th September. The company attributed this to a healthy growth in recurring management fees, supplemented by an increased performance in fee income. The group also revealed a 15% rise in profit before tax to 347.8 million pounds, boosted by an increased operating margin. The recent rise in share price saw Aberdeen Asset Management promoted to the FTSE 100 index in March for the first time in its 29 year history. The shares dropped by 6.7p to 336p. Pharmaceutical company GlaxoSmithKline (GSK) has increased its ownership stakes in both its Nigerian and Indian businesses as it continues its strategy to invest in emerging markets. The firm has increased its ownership in GSK Nigeria, which distributes brands such as Sensodyne and Lucozade, from 46.4% to 80% for an undisclosed fee. GSK has also revealed that it plans to increase its stake in its Indian healthcare arm from 43.2% to 75%. The offer for the firm, whose leading product is Horlicks, will be funded through GSK's existing cash resources. The shares fell by 17p to 1,330p. Safety and testing group Intertek (ITRK) has acquired 75% of the issued capital of LSI, a global minerals reference testing laboratory in a deal worth 5 million euros (4.05 million pounds). The laboratory, located in Rotterdam and an employer of 27 people, has been acquired to enhance Intertek's existing minerals services by extending trade verification services to its customers. The laboratory will be used by customers to determine precise minerals values when settling commercial trades of such items. The shares were up by 4p at 2,964p.
Mid Caps Pork products supplier Cranswick (CWK) announced a 6% rise in revenues to 418.6 million pounds for the 6 months ended 30th September as profit before tax grew by 21% to 22.5 million pounds. The firm cited the importance of the relative low price of pork compared with other proteins against a backdrop of hard economic times in its strong results. Also of note was the strong performance of its recently acquired Kingston Foods business, which has significantly increased the firm's cooked meat production capability. The shares climbed by 73.5p to 812.5p. 
Cranswick - bringing in the bacon Essar Energy (ESSR) posted a 97% increase in revenues to 12.8 billion dollars (8 billion pounds) for the 6 months ended 30th September, primarily driven by higher refining revenues in India due to the acquisition of Stanlow. Despite this rise in revenues the firm reported a loss before tax of 282.8 million dollars (176.5 million pounds), a swing from a profit of 278.5 million dollars (173.85 million pounds) in the previous year. This turnaround was driven by higher interest costs, depreciation and increased foreign exchange losses. The shares increased by 5.9p to 127p. Online betting company Betfair (BET) has taken the decision to withdraw from the Greek market after acting on legal advice over confusion in the gambling regulatory system in the country. The value of any permits bought would be unclear, according to lawyers, and the firm considered the gambling legislation in the country to be inconsistent with European law. Before this decision Betfair had expected to generate 13 million pounds of revenue from the Greek market in the current financial year,. The shares gained 7.5p to 760p. 
Small Caps & AIM Troubled UK-based coal producer ATH Resources (ATH) has appointed KMPG to explore a sale of the company, its business and assets or any other restructuring options that may be available. The share price has fallen from 40p to 0.375p since January - it losing another 0.05p today - on the back of weak coal prices. ATH said that if the transaction is completed it is likely that existing shareholder value will not be maintained. At this stage discussions are at an early stage and the firm will make further announcements if there are any more developments. Hargreaves Services (HSP), which recently announced the closure of the Maltby colliery in South Yorkshire due to safety concerns, is rumoured to be a potential suitor. Producer of diagnostic testing kit Immunodiagnostic Systems Holdings (IDH) revealed a 13% fall in revenues to 23.8 million pounds and a 26% dip in pre-tax profits to 6.3 million pounds for the 6 month period ended 30th September. The company attributed these falls to an increasingly competitive vitamin D testing market, which has resulted in pricing pressure in this particular area. In response, the firm now plan to expand its geographic reach with judicious entry into high growth markets. The shares inched up by 3p to 301p. KSK Power Ventur (KSK), the power project company with interests in multiple plants and businesses across India, posted a 9% increase in revenues to $198.62 million (124 million pounds) for the 6 months ended 30th September. This was boosted by a 21% increase in operating capacity to 2744 million units. According to the company, growth would have been even better if the rupee had not experienced a 20% depreciation against the US dollar since September 2011. The shares remained flat at 402.5p. 
Origin Enterprises (OGN), the agricultural services company, announced an 11% increase in group revenues to 351.2 million euros (284 million pounds) for the three months ended 27th October. This was boosted by increased fertiliser demand in Ireland as farmers invested in nutrition programmes to support improved grass growth as the end of the growing season approached. The company also said that interests in its consumer foods and marine proteins and oils performed "in line with expectations" during the quarter. The shares were down by 0.16p at 4.11p. Petroleum exploration and gas storage company InfraStrata (INFA) revealed it has made good progress in both of its project areas. The 663 sq km Larne-Lough Neagh Basin license has produced more than 20 leads according to data interpretation by Merlin Energy Resources. The company are also hopeful of drilling an appraisal well on a structure where a well has already encountered oil in the Wessex Basin, offshore the Dorset coast, after it purchased 3,500 km of existing 2d seismic data and existing 3d surveys. The shares lost 1.5p to 10.75p. Regenerative medicine company Tissue Regenix (TRX) has established a subsidiary company in the US as part of its commercialisation strategy for its dCELL technology platform. The company's dCELL technology will initially be used to treat a number of chronic diseases but could be used in the future in other applications including vascular repair, heart valve replacement and knee repair. The technology works by stripping DNA and other cellular material from animal and human tissue leaving an acellular tissue scaffold which is not rejected by a patient's body and can then be used to repair diseased body parts. The shares fell by 0.125p to 11.125p. | 
No comments:
Post a Comment