Wednesday 20 February
QUOTE OF THE DAY
"I am not a glutton -- I am an explorer of food." "
Erma Bombeck
THIS MORNING IN LONDON
FTSE 100
6,401.74
22.67 0.36%
FTSE 250
13,763.42
108.47 -0.79%
FTSE 350
3,438.38
14.28 0.42%
FTSE All Share
3,369.35
14.20 0.42%
AIM 100
3,384.79
1.23 0.04%
AIM All Share
754.29
0.14 0.02%
13:45 pm
THOUGHT FOR THE DAY
Howdy Share Fans,
There has been a bit of merger rumour going round. This has sparked a few handy increases in share value.
One of the most important current tales that spring to mind is ITV (itv). This share has risen sharply over the last few months – and much of this rise can be put down to rumours that it might be taken over.
CLICK HERE for the full article
ON THE BLOG
I have been watching with a mixture of glee and disbelief the meteoric rise in the shares of online grocer Ocado since last November, during which time they have trebled, reaching a high of 139p last week.
There seem to be five basic reasons for the rise...
CLICK HERE for the full article
High profile M&A activity in the U.S. last week livened up a worried market beset with Eurozone slowdown fears, debt drama and a looming US budget battle. In particular, Heinz shares shot up last Thursday after Warren Buffett’s Berkshire Hathaway and 3G’s takeover of the global ketchup maker for $28billion. Peers Kellogg, Kraft Foods and General Mills shares rose in reaction to the news on that day.
So do the deluge of recent deals signal the long awaited return of M&A after three years of relatively low deal activity?
CLICK HERE for the full article
REPORT OF THE DAY
Ariana Resources - Excellent drilling results from Salinbas and Ardala
by Growth Equities & Company Research
Ariana offers the promise of gold production in 2014 and revenue generation but also the opportunity for a big potential uplift in value from a major gold discovery in Turkey.
Latest drilling results from the Eldorado joint venture revealed cracking grades of gold and widths of mineralisation from both the Salinbas and Ardala. Further drilling in 2013 is focused on compiling an initial mineral resource estimate for the project.
We have determined a combined valuation of £22.2 million based on 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; which on a fully diluted basis (400m shares) gives a target price of 5.6p.
CLICK HERE TO DOWNLOAD THE FULL REPORT
THIS MORNING IN LONDON
Footsie breaches 6,400 on stimulus hopes
The FTSE 100 hit a fresh five-year high in morning trade on Wednesday morning on the back of hopes for further stimulus from the Bank of England, as minutes of the latest rate-setting meeting showed that more policy-makers voted for further asset purchases.
London's benchmark index hit an intraday high of 6,410 after the news before settling around the 6,400 mark, a level not seen since January 2008.
Minutes from the February meeting of the BoE's Monetary Policy Committee's (MPC) showed that the central bank was a fair bit more dovish than had been thought.
The MPC's decision to hold the size of its quantitative easing (QE) programme unchanged at £375bn on February 6-7th was decided upon by a margin of six votes in favour to three against, surprising analysts who had expected to MPC to vote eight-to-one. Even BoE Governor Sir Mervyn King added his name to the list of those calling for more stimulus.
The pound slid after the minutes were released and was trading down 0.75% against the dollar at $1.5310 by midday.
Analyst Simon Hayes said that it remains "very unclear" if this month's vote marks the start of an "inexorable slide towards more QE".
"The MPC appears torn between feeling it should do more to boost demand and worrying that QE may not be the right tool, at least on its own," he said.
"There appeared to be more appetite on the committee to expand QE if it were done in conjunction with other policy measures to address particular market frictions or market failures that were holding back growth. The minutes record no concrete suggestions or conclusions, however."
FTSE 100: RSA plummets after surprise divi cut
Full-year results from RSA Insurance were largely in line with estimates, with extreme wet weather in the UK and earthquakes in Italy contributing to a 5.9% fall in operating profit. However, shares tanked after the firm unveiled a 33% cut in its annual dividend due to the likelihood for a prolonged period of low bond yields.
Banking group Barclays was also under the weather after Goldman Sachs downgraded its rating for the stock to 'neutral' and cut its target price from 350p to 340p.
BHP Billiton was also lower after announcing a new CEO as its half-year profits dropped 58% on the back of weak commodity prices and a strong Australian dollar.
Rexam, the consumer packaging group, was a high riser despite saying that pre-tax profits fell 11.9% in 2012. The company raised its dividend by 6.0%.
Industrial engineering group Weir gained after spending £55m on three acquisition to strengthen its presence in the fast-growing mining markets.
Natural gas giant BG Group was higher on reports that it has Goldman Sachs to help analyse options for selling part of the infrastructure linked to its Australian liquefied natural gas project.
Telecoms firm Vodafone fell after spending £790m on buying spectrum licences for ultra-fast 4G mobile networks. However, BT, which spent £186m on a different band, was in demand.
FTSE 250: Travis Perkins slumps on cautious comments
Building materials group Travis Perkins fell after saying that "volatile conditions will persist in the shot term". Nevertheless, the company was able to increase pre-tax profits by 16.2% in 2012, while revenue rose 1.4%.
Wealth management group Rathbone Brothers was also lower despite saying that funds under management rose 13.4% in 2012.
House-builder Galliford Try gained after lifting its dividend by a third in spite of a 9.0% fall in group revenue and flat profits in 2012.
CLICK HERE FOR THE DAY'S FASTEST MOVING STOCKS
WHAT THE BROKERS SAY
Investec has kept its 'sell' rating and 101p target price for insurance giant RSA after the company surprised the market with a dividend cut on Wednesday morning. UBS has downgraded its rating for contract caterer Compass Group from 'buy' to 'neutral', but has raised its forecasts for the company after accounting for foreign exchange changes.
After a strong performance over the last few months, Barclays has now been removed from Goldman Sachs' Pan-European 'buy' list and is now rated 'neutral' by the US investment banks.
Amara Mining: Goldman Sachs moves target price from 90p to 55p downgrading to neutral.
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:
Thomas Cook Group PLC (tcg)
NETCALL LOOKING VERY INTERESTING
Gulf Keystone Petroleum - 500p a share
VIANET GROUP (VNET) - Formerly BRULINES.
Marstons MARS
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Regards,
ShareCrazy
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