Friday's Stock Market Report from UK-Analyst: featuring Pearson, Lonmin and Caza Oil & Gas

From UK-Analyst.com: Friday 28th December 2012 The Markets With only four days to go President Obama has gathered together congressional leaders to discuss a solution to the US's "fiscal cliff". With new tax rises and sweeping spending cuts due to come into effect on 1st January the fear is that the country will be plunged back into recession. Market whispers are that the President will suggest a limited new package, including the renewal of tax breaks and a delay to spending cuts. At the London close the Dow Jones was down by 95.55 points at 13,000.8 and the Nasdaq was down by 14.12 at 2,618.81. In London the FTSE 100 finished down by 28.93 points at 5,925.37; the FTSE 250 fell by 37.95 to 12,359.73; the FTSE All-Share lost 13.97 to 3,105.01; and the FTSE AIM Index gained 3.84 to 704.57. Blue-Chips & Mid Caps Education giant Pearson (PSON) has made a strategic investment in NOOK Media, a new company consisting of book giant Barnes & Noble's digital businesses - including its NOOK e-reader and tablets - the NOOK digital bookstore and 674 college bookstores across America. Pearson will invest $89.5 million in cash in NOOK Media for a 5% equity stake, with other investors Barnes & Noble and Microsoft having 78.2% and 16.8% of the business respectively. Pearson can also earn the option to purchase up to an additional 5% in NOOK Media subject to certain conditions. The shares edged down by 3p to 1,193p. Ian Farmer, CEO of troubled platinum producer Lonmin (LMI), has stepped down from his position with immediate effect due to serious illness. Farmer has been CEO for the past four years and has been with the company for over 26 years. A successor is now being sought and in the meantime, Simon Scott, Chief Financial Officer, will be Acting CEO, although he has requested that he should not be considered as a candidate for the role on a permanent basis. Lonmin shares fell by 7.5p to 278p. Ruspetro (RPO) has been granted a license extension for its Palyanovsky block by the Ministry of Natural Resources and Ecology of the Russian Federation. The Palyanovsky block covers an area of approximately 180.5 square kilometres, with proved and probable reserves of 610 million barrels. Ruspetro has completed the minimum work requirements for the block for 2012 and said that it expects to continue to do so in future years while remaining in compliance with the obligations and conditions of the license. The shares rose by 6p to 80p. Small Caps & AIM Specialist insurance investor Randall & Quilter (RQIH) has completed the acquisition of Alma Insurance Company following approval from the Finnish Financial Services Authority. Alma has been in run-off since 1989 and comprises international reinsurance business with net reserves of 1.6 million as at 30th September 2012. Randall & Quilter is paying 4.4 million pounds for the business, which is a discount to the firm's unquantified estimated adjusted net asset value. The shares remained flat at 105.75p. China based unconventional oil & gas driller Greka Drilling (GDL), has signed a contract with China National Petroleum Corporation's Huabei Oilfield Company for its LiFaBriC drilling services. The initial contract is expected to be completed early in Q1 2013. While no value was put on the deal Greka said that it is a positive move in securing future contracts with CNPC, which has announced plans to drill a total of 1,500 - 2,000 wells in 2013. Shares in Greka Drilling gained 1.125p to 10p. TomCo Energy (TOM), the oil shale explorer, announced a delay in the publication of a JORC compliant Ore Reserve for its Holliday Block, Utah, in the United States. The report had previously been expected by the end of this year but has now been put back in order to include updated estimates for the capital and operating costs for the oil extraction process "EcoShale", owned by Red Leaf Resources Inc. Earlier in the year the company announced a surface mineable JORC compliant Measured Resource of 126 million barrels on the main tract of the Holliday Block lease but is looking to upgrade this to a JORC compliant Ore Reserve in order to de-risk the asset. TomCo shares lost 0.085p to 1.275p. MBL Group (MUBL), the DVD and CD distributor, announced a loss before tax from continuing operations of 1 million pounds for the six months to September. The shares fell by 0.5p to 9p. Revenues at the business fell by 8.8% to 7.3 million pounds on the back of the planned wind-down and implementation of a new strategy following the loss of a major contract in 2011. MBL remained debt free at the period end, with net cash of 3 million pounds, which compares to the current market cap of 1.56 million pounds. The group sees its Windsong International business, an exporter of specialist and rare CDs and DVDs, and Garden Bird Supplies (acquired in May this year) as having the potential to deliver sustainable revenue and profit growth. Gold Oil (GOO), shares in which have been suspended from AIM since the end of June, updated on its progress to be re-admitted to the market. The company said that it has made progress on plans to raise additional capital to develop its assets in Peru and Columbia and a further update will be made in early 2013. In addition, the company is in ongoing discussions with a number of suitable candidates for Board membership - Gold Oil currently has only two directors. The firm expects that one or more appointments will be made in early 2013 to re-establish a Board suitable for a publicly listed company. Shares in Caza Oil & Gas (CAZA) rose by 0.25p to 16.25p after the firm announced a production update for its Forehand Ranch Prospect in Eddy County, New Mexico. The Forehand Ranch 27 State Com No. 1H horizontal Bone Spring well was fracture stimulated and has now been producing under controlled flowback for two weeks. Production has stabilised and in the past 24 hours the well recovered hydrocarbons and frac fluids at a gross rate of approximately 1,631 barrels, producing 170 bbls of oil, 103 thousand cubic feet of natural gas, which equates to 187 bbls of oil equivalent, and 1,444 bbls of frac fluid.

Ensure delivery of tips and research from UK-Analyst.com, add UK-Analyst@news.t1ps.com to your address book. UK-Analyst.com is owned by t1ps.com Limited which is regulated and authorised by the Financial Services Authority. The information contained within "The Stock Market Reporter" is not intended as financial advice and its veracity cannot be guaranteed. You are receiving this email because you have signed up with us to receive it.

If you do not wish to receive such emails please use the following link to unsubscribe.

UK-Analyst.com is owned by t1ps.com Ltd, which is authorised and regulated by the Financial Services Authority

The share tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the share tips contained here should seek independent advice from a Financial Services Authority authorised Stockbroker or Financial Adviser. So, while we would not wish to reduce our liability under the FSA regulatory regime, we cannot otherwise be held liable if individuals suffer losses through following share tips contained on this site or emailed out as free share tips.

The value of investments can go down as well as up. The past is not necessarily a guide to future performance. Investing in shares can lose you part or all of your capital although the potential returns are theoretically unlimited.

The difference between the buy share price and the sell share price for smaller company shares (penny shares) can be significant. Profits from dealing in shares may be liable to tax - the level of tax and bases of relief from tax are subject to change. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Financial spread betting is a high risk investment, losses from which are potentially unlimited.

Some of the share tips on this site will be smaller company shares. By their nature such investments can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares (or 'small caps'/'penny shares'). UK-Analyst.com defines a smaller company share as any stock traded on AIM or PLUS or which has a market capitalisation of less than £300 million.

The appearance of an advert does not mean that we endorse the advertiser's goods or services. While we will not knowingly run an advert that is untrue, T1ps.com is not responsible for the accuracy of any advertising material or the accuracy of the description of an advertised product or service anywhere on our websites. 

We do not recommend or endorse any vendor/trainer/product/service other than our own. It is up to each member to decide whether what an advertiser offers is right for you. We take every care to ensure that scams and spamming are not run on this website, but we recommend that any purchaser/service user take every precaution possible to satisfy themselves of the authenticity of any service/product purchased and responsibility for this lies solely with the purchaser. 

The appearance of an advert on the site does not mean that we endorse the advertiser's goods or services. While we will not knowingly run an advert that is untrue, UK-Analyst.com is not responsible for the accuracy of any advertising material or the accuracy of the description of an advertised product or service anywhere on our websites. 

We do not recommend or endorse any vendor/trainer/product/service other than our own. It is up to each member to decide whether what an advertiser offers is right for you. We take every care to ensure that scams and spamming are not run on this website, but we recommend that any purchaser/service user take every precaution possible to satisfy themselves of the authenticity of any service/product purchased and responsibility for this lies solely with the purchaser.