Thursday 14 February
QUOTE OF THE DAY
"The S&P was in red,
But I wasn't blue,
Because I shorted the market
And went long of you"
Shore Capital
THIS MORNING IN LONDON
FTSE 100
6,308.24
-50.87-0.80%
FTSE 250
13,476.60
-126.39 --0.93%
FTSE 350
3,385.14
-27.92 -0.82%
FTSE All Share
3,317.53
-27.05 -0.81%
AIM 100
3,355.70
0.27 0.01%
AIM All Share
749.40
0.13 0.02%
12:00 pm
THOUGHT FOR THE DAY
Hello Share Planners,
The American president made a big speech this week in which he said loads would now be done to get the USA’s economy growing again. One measure is to increase the minimum wage. There was other stuff, too.
He will have a hard time getting things through, though, because, quite rightly, the American rules do not allow for one person to get his or her own way all the time. But I dare say the speech was encouraging for share pushers on both sides of the Big Pond.
CLICK HERE for the full article
NIGEL FARAGE CONFIRMED FOR MASTER INVESTOR 2013! TO CLAIM YOUR FREE TICKET CLICK HERE AND ENTER THE PROMO CODE SCR2013
ON THE BLOG
Sell GMA Resources
by Lucien Miers
Every now and then one is rewarded by reading a boring sounding announcement and doing some rudimentary maths.
Yesterday was one such occasion and the stock in question was GMA Resources. Shares in GMA had been suspended since May pending a reverse takeover, the details of which were announced on Monday. On Tuesday the shares began trading again appreciating strongly in the afternoon and yesterday they went balmy at one point hitting 0.9p, up from 0.15p the day before.
CLICK HERE for the full article
REPORT OF THE DAY
Ariana Resources - Mine permitting proceeds at Kiziltepe
by Growth Equities & Company Research
The permitting process is expected to be concluded in 2H 2013 with mine construction timetabled to begin before the year-end. Kiziltepe is planned to be a 150,000 tonnes of ore per annum gold mine, which equates to average production of 21,000 ounces per year of gold equivalent over the first five years of operation.
Ariana does not just offer the promise of gold production in the near future and revenue generation but also the considerable uplift in value that would come from a major new gold discovery in Turkey.
Gold production at Red Rabbit looks likely to start in 2014. What has become obvious is that the Red Rabbit Gold Project continues to grow in scale. Exploration results are continuing to provide more evidence to back the Board’s view that Sindirgi Gold Corridor contains significant potential for the discovery of additional resources.
Our valuation has been calculated just based on the company’s stake in the Kiziltepe Sector of the Red Rabbit Gold Project and Ariana’s 49% interest in the Joint Venture with Eldorado Gold Corporation and our target price is 5.6p
CLICK HERE TO DOWNLOAD THE FULL REPORT.
THIS MORNING IN LONDON
Stocks sink as Eurozone contracts further in Q4
After hitting a fresh five-year high the day before, London's benchmark FTSE 100 index slumped on Thursday morning as traders reacted to weaker-than-expected economic growth figures from Japan and across Europe.
Overnight, it was announced that Japanese gross domestic product (GDP) contracted by 0.1% in the fourth quarter, down 0.4% on an annualised basis. The consensus estimate was for 0.4% GDP growth.
Fourth-quarter GDP in the Eurozone also failed to live up to market expectations as sharper-than-expected contractions was registered in France, Italy and even economic powerhouse Germany, which saw GDP decrease by 0.6% quarter-on-quarter (q/q).
The single-currency region saw its economy contract by 0.6% q/q in the final three months of 2012, worse than the 0.4% GDP decline expected. This compares with the smaller 0.1% contraction registered in the third quarter.
The euro slumped nearly 1.0% against the dollar today and was trading at $1.3323 by midday.
"The reaction to the GDP figures was understandably negative, although looking at how overbought European stocks and the euro have become, people may just be using this as an excuse to get out and wait for the next opportunity to buy at a low again," said market analyst Craig Erlam from Alpari.
"Traders still appear to be cautiously optimistic at this stage, but this can quickly change as we've seen in the past," he said.
As markets digest the figures, the focus is likely to turn to initial jobless claims figures Stateside which are scheduled for release this afternoon, with analysts expecting claims to total 360,000 last week, down from the 366,000 figure the week before.
FTSE 100: AMEC drops on cautious outlook
Engineering and project management group AMEC may have hiked its dividend by a fifth after beating forecasts in 2012, but shares dropped early on after warning of more modest growth this year.
Power systems group Rolls-Royce was also lower after its full-year results, in which it delivered 8.0% growth in underlying revenue and a 24% increase in underlying profits. While results were in line, analysts at Jefferies said that the company's cash flow guidance "may disappoint a number of observers".
After an earlier rise following its full-year results, mining group Rio Tinto tracked the market lower in mid-morning trade. The company announced that it swung to its first-ever full-year loss in 2012, dragged down by impairments against its aluminium and Mozambique coal assets. However, on an adjusted basis, profits still came in ahead of consensus forecasts.
Asset management firm Aberdeen was a high riser after buying sector peer Artio Global Investors for $175m. Canaccord Genuity upgraded the stock to 'buy' this morning "given the earnings per share expansion from current acquisitions".
Consumer products giant Reckitt Benckiser was making gains after Oriel Securities raised its recommendation to 'add' and hiked its target price for the shares from 3,730p to 4,700p. Deutsche Bank, Nomura and Credit Suisse also raised their target prices today.
Outsourcing group Capita was lower after buying Northgate Managed Services, a cloud-based infrastructure solutions and specialist managed services, for £65m.
FTSE 250: Britvic and AG Barr fall on merger update
Soft drinks peers Britvic and AG Barr were in the red this morning after announcing late yesterday afternoon that the Office of Fair Trading has referred the tie-up to the Competition Commission.
Bumi plc shares fell 10% as co-founders of the coal miner financier Nathanial Rothschild and the Bakrie Group continued to butt heads over fate of the business. Shareholders are meeting next Thursday to vote on a proposal by Rothschild to replace members of the board.
Environmental technology health and safety group Halma gained after saying that adjusted profits would be in line with expectations this year.
CLICK HERE FOR THE DAY'S FASTEST MOVING STOCKS
WHAT THE BROKERS SAY
Analysts at Canaccord Genuity said there was "little to impress us" after engineering and project management group AMEC posted its 2012 results. Rio Tinto may have swung to its first-ever annual loss in 2012, but Nomura has kept its 'buy' rating and 3,700p target price for the stock, calling its full-year results 'solid'.
Panmure Gordon has retained its 'hold' rating and 380p target price for soft drinks group Britvic after Wednesday's announcement that the Office for Fair Trading (OFT) has referred the firm's proposed merger with AG Barr to the Competition Commission.
Following a tough year for security solutions group G4S, Investec has raised its rating for the stock from 'hold' to 'buy', saying that the company is well-placed to recover in 2013.
Click here for the rest of the broker recommendations
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
CONROY GOLD & NATURAL RESOURCES (CGNR)
RATHBONE BROTHERS - A RAT worth feeding?
halma
AMEC
HELICAL BAR (HLCL)
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Regards,
ShareCrazy
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