From UK-Analyst.com: Wednesday 2nd January 2013
The Markets After weeks of negotiations the U.S House of Representatives has passed a bill to avert the "fiscal cliff" of severe spending cuts and huge tax increases. The compromised bill was passed by a vote of 257-167 following a day of fierce protest by Republicans. President Obama commented, "Thanks to the votes of Democrats and Republicans in Congress, I will sign a law which will raise taxes on the wealthiest two percent of Americans, while preventing a middle class tax hike that could have sent the economy back into recession". On the back of the agreement the FTSE 100 surged by 2.2% to break through the 6,000 barrier and hit its highest level since July 2011. In the UK, a survey of small firms found that despite confidence remaining low there is a belief that 2013 will be a good year compared to the previous two years. The Federation of Small Businesses (FSB) said that prospects for 2013 looked to be brighter but also warned of the difficulty for small firms to obtain finance. National Chairman for the FSB, John Walker said, "The signs seem to be positive but its going to be a long road ahead with some economists warning of a triple dip recession and others obtaining cautious optimism". Over in China, Manufacturing activity expanded for a third month in a row in December, fuelling hopes of a rebound in the world's second-largest economy. China's official Purchasing Managers' Index stood at 50.6 for December, with a reading above 50 indicating expansion. This will be welcome news for the country as there were fears that slowing global demand could significantly impact on manufacturing levels. At the London close the Dow Jones was up by 223.91 points at 13,328.05 and the Nasdaq grew by 58.28 points to 2,719.21. In London the FTSE 100 increased by 125.89 points to 6,023.70; the FTSE 250 finished 248.64 points up at 12.623.61; the FTSE All-Share gained 64.96 points to 3,158.37; and the FTSE AIM Index crept up by 8.99 points to 716.20.  Broker Notes Panmure Gordon reiterated its "buy" recommendation on housebuilder Bovis Homes (BVS) with a target price of 622p. The broker is impressed with the company's forecast 300 basis point increase in gross margin this year and believes this will be a key driver in the growth of the business. Panmure also notes the ever increasing south-east weighting of its portfolio, rising from 64% to 80% in the last 3 years, improving the quality of earnings which, according to the broker, should in turn help the stock's rating. The shares were up 8.5p to 583.5p. HB Markets issued a "speculative buy" recommendation on gold exploration firm Ariana Resources* (AAU) with a target price of 6p. The broker is excited by the progress the firm has made across its gold projects in Turkey since raising funds back in July. In particular, new forestry permits now allow Ariana to work on the tailings dam in the Kilziltepe section of the Red Rabbit gold project. Also noted by the broker is that Managing Director, Kerim Sener, has recently bought more shares in the company. The shares rose by 0.075p to 1.25p. Panmure Gordon maintained its "buy" recommendation on investment firm Symphone International (SIHL) with a target price of 1.19 dollars. The broker believes that the shares are currently trading at a 22% discount to cash and listed investments, as well as a 44% discount to current NAV. The broker is of the opinion that the company's investments are well placed to grow, while deployment of the recent rights issue could, according to Panmure, create further shareholder value over the next 12 months. The shares remained flat at 0.67p. 
Blue-Chips Oil giant BP (BP.) announced the successful start of production from the Skarv field in the Norwegian Sea, located 210 kilometres west of the Norwegian Coast. The field, originally discovered in 1998, has an estimated recovery of around 100 million barrels of oil and condensate and over 1.5 trillion cubic feet of rich gas. The field is anticipated to produce 125,000 barrels of oil equivalent per day (30,000 net to BP) within the first 6 months increasing to 165,000 barrels of oil equivalent per day (40,000 net to BP) by the end of the year. The shares grew by 6.5p to 431.3p. Engineering services group Babcock (BAB) has acquired LGE Process from the Weir Group for an enterprise value of 23 million pounds. LGE specialises in the design and building of plants which process, store and handle liquid gases and generated 26.3 million pounds of revenues in 2011, with 3 million pounds reported as operating profits. The acquisition is in line with the company's strategy of building on current positions as well as developing into new commercial marine markets, particularly within the oil and gas market. The shares grew by 30p to 995.5p. Asset management firm Old Mutual (OML) has completed the sale of five of its U.S affiliates which had a combined 12 billion dollars (7.37 million pounds) of funds under management. The five firms were 2100 Xenon Group, 300 North Capital, Analytic Investors, Ashfield Capital Partners and Larch Lane advisors. The shares increased by 3.3p to 181.5p. 
Mid Caps Investment firm Caledonia Investments (CLDN) has sold its stake in Celerant Consulting Investments, the global operations consultancy, to Hitachi Consulting Corporation. The amount initially payable is 43.4 million pounds with a further 4.3 million pounds placed in escrow in respect of warranties and other items. Caledonia initially invested 20.3 million pounds in Celerant in 2006 meaning that this disposal will deliver a net IRR of 27.9% and a multiple of 3.5x cash invested. The initial sale proceeds will be held on deposit for future investment. The shares climbed by 71p to 1,607p. 
Small Caps & AIM Oil services business Getech (GTC) has secured two sales for its global gravity and magnetic datasets totalling $2 million (1.23 million pounds) from its global data library. According to the company the two contracts were requested and signed within a matter of days, with the data to be delivered by the end of the year. The shares jumped by 0.06p to 0.051p. Telit Communications (TCM) has signed an agreement to purchase Crossbridge, a premier US based M2M data services provider, based in Lincolnshire, Illinios, U.S.A. The acquisition will allow Telit to expand its m2mAIR business unit which offers services in USA. The company cited "tremendous synergies" between m2mAIR and the Crossbridge offering as reason for the acquisition, a benefit which should help to consolidate its presence in the U.S market. The shares remained flat at 0.56p. 3D solutions company DDD Group (DDD) has expanded the availability of its Yabazam 3D TV app for LG 3D Smart TV'S to seven more countries. The app in question streams 3D programs on a pay as you watch basis and is now available in Australia, Brazil, Canada, France and Italy, the Netherlands and Spain. In total, the Yabazam app has been downloaded over 170,000 times and averages more than 1,500 sessions per day. The shares were unchanged at 0.22p. 
Media group Avesco* (AVS) confirmed that Walt Disney Company has lodged an appeal against a ruling in favour of Celador International, in which Avesco has an interest. This comes after Avesco said last month that it expects to receive around 60 million dollars after certain costs in relation to the judgement and award made for litigation brought by Celador against Disney and others. The shares fell by 9.5p to 178.5p. Entertainment group Reach 4 Entertainment (R4E) announced that its new events division, reach4events, has secured its first contracts to produce and design the opening night celebrations for two Broadway shows in early 2012. The division will produce and design the red carpet and after party events for "Cat on a Hot Tin Roof" on 17th January as well as "Cinderella" on 3rd March this year. Reach4events was launched in 2012 and focuses exclusively on producing and designing parties and events on behalf of theatre and film producers. The shares were unchanged at 0.05p. * Avesco and Ariana Resources are corporate clients of Rivington Street Holdings, the ultimate owner of UK-Analyst. | 
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