| From UK-Analyst.com: Friday 21st June 2013 IMPORTANT: Are your UK-Analyst emails being delayed? Add UK-Analyst@news.t1ps.com to your safe senders/contact list to help resolve the problem The Markets At the London close the Dow Jones was down by 49.78 points at 14,708.54 and the Nasdaq was down by 33.77 points at 2,886.57. In London the FTSE 100 closed down by 43.34 points at 6,116.17 and the FTSE 250 lost 113.05 points to close at 13,554.33. The FTSE All-Share slipped by 14.28 points to 3,245.73 while the FTSE AIM Index closed down by 2.86 points at 697.20.  Broker Notes Ahead of next week's full year results from Betfair (BET), Panmure Gordon maintained its "buy" stance and 1,000p target price on the betting exchange. The broker expects EBITDA
(post share based payments) of 72.9 million pounds for the year to April 2013 but a muted start to 2014 due to an ongoing shift to regulated revenues and a strong Euro 2012 in last year's Q1. To support its positive stance Panmure notes that the stock trades on a 2013 EV/EBITDA multiple of 7.2 times, which is a discount to the sector average of 9 times. The shares gained 5p to close at 820p. Cantor Fitzgerald has a "sell" stance and a 70p target price for retailer Debenhams (DEB). Ahead of the firm's upcoming Q3 update the broker is concerned about H2 profitability as anecdotal feedback is that the industry is having a tough time given the late start to spring. Cantor believes that the valuation is not particularly demanding (2014 earnings multiple of 8.6 times) but given the risk to UK profitability and lack of medium-term growth it is bearish on the shares. Debenhams shares rose by 1p to 87.65p. Shore Capital is positive on the prospects for Standard Chartered (STAN), rating the shares as a "buy". The broker notes that the Asian bank has a well diversified, well capitalised and well funded balance sheet, which should stand it in good stead if economic performance disappoints. Shore does not think Standard Chartered is likely to be the next RBS or HBOS but admits that it is by no means immune to weak economic growth, which would likely manifest itself in lower earnings. However, it focusses on the long-term prospects for the group, which it views as being favourable. The shares fell by 6.5p to 1,403.5p. 
Blue-Chips Mining giant BHP Billiton (BLT) has extended its long-term joint venture relationship with ITOCHU Corporation and Mitsui & Co regarding the firm's Western Australia based iron ore assets. Under the new deal ITOCHI and Mitsui will invest approximately $800 million and $700 million billion respectively in shares and loans of BHP Iron Ore (Jimblebar), for respective 8% and 7% stakes in the Jimblebar mining hub and resource. The new Jimblebar mine is expected to have initial production capacity of 35 million tonnes per annum, with future expansion potential. The shares slipped by 24p to 1,704.5p. Mid Caps Troubled Indonesia focused coal miner Bumi (BUMI) is working on reinstating its shares to trading shortly after its AGM on 26th June. Shares in the firm, founded by banking heavyweight Nat Rothschild, were suspended in April after irregularities were found in the accounts of a subsidiary, forcing the company to delay publication of its full-year results. Next Wednesday's AGM is likely to be a lively affair, with various shareholders having expressed their intent to vote against the re-election of the directors and not approve the accounts and remuneration plan. Small Caps Bob Geldof added another day to the list of those he doesn't like after his TV production company Ten Alps (TAL) posted a statutory loss before tax of 8 million pounds for the year to March. Revenues at the firm fell by 19% in the period to 27.64 million pounds, with over 5 million of non-recurring expenses pushing the firm deeply into the red. The firm was hit particularly hard by a 28% fall in sales in its Publishing business, blamed on "extreme economic conditions". Since the period end Ten Alps raised 1 million pounds via the issue of new capital & loan notes and said that it is now on firmer ground following a restructuring during the year. The shares rose by 0.18p to 1.75p. Also making huge losses in the year to March was low cost airline Flybe (FLYB), the firm posting a reported loss of 40.7 million pounds. While revenues for the year rose by 15% to 781.5 million the firm suffered from a 1% underlying decline in its UK's core domestic market, along with high fuel prices and other cost pressures, particularly in US Dollar denominated costs, airport charges and air navigation fees. As part of a wide ranging cost saving plan the UK operations will see 20% of their headcount chopped, with pilots seeing a 5% paycut in return for extra holidays. From 2014/15 onwards around 50 million of savings are expected from the firm's various initiatives. Flybe shares added 0.25p, closing at 41.5p. As a result of the plunging gold price miner Shanta Gold (SHG) has committed to a number of forward sale contracts over part of its 2013 and 2014 anticipated production. The company has entered into forward contracts over an additional 9,000 ounces to be delivered during the period to March 2014, secured at an average price of $1,362 per ounce. Shanta now has over 30,000 ounces worth of forward sales contracts through to March 2014 at an average price of $1,398 per ounce. Given that the price of gold has fallen to c$1,300 an ounce as we write, this may turn out to be a shrewd move. More shrewd than following the advice of various (unqualified) financial commentators in the past few years, who claimed that gold could reach highs of $2,000 an ounce by this year. Shanta shares rose by 0.125p to 11.25p. 
US oil producer Nostra Terra Oil & Gas (NTOG) has raised 750,000 before expenses in a placing at 0.4p per share, a 10% discount to yesterday's closing price. The cash will be used for the drilling of further wells in the Oklahoma based Chisholm Trail Prospect, with a portion going towards leasing in the High Plains Prospect in Texas. Nostra Terra shares closed down by 0.025p at 0.42p. Construction services group ISG (ISG) has conditionally agreed to acquire a 20% minority interest in ACE, a Brazilian fit out and refurbishment business, for 1.9 million pounds - with an option to acquire the remaining shares a four year period for a maximum of 12.7 million pounds. ACE provides office fit out and refurbishment services in Sao Paulo and Rio de Janeiro, making revenues of 10 million pounds and profit before tax of 1.1 million pounds in 2012. ISG also announced a 7.75 million placing at a price of 155p per share. The funds will partly be used to fund the ACE deal, as well as for payments due under a number of bolt-on acquisitions and related costs. Separately, ISG announced it has been appointed as lead contractor on a Nordic data center project for a global technology company, with a value of circa 150 million Euros. The shares closed down by 6p at 166p. Shares in VoIP telephony provider Coms (COMS) surged by 0.425p to 3.175p after further market chatter than the company is about to sign more major deals. Back in April the firm signed a deal to sell broadband and lines to MITIE Property Services. The deal with MITIE is expected to be worth 15 million pounds over 24 months - not bad for a business which only made sales of 1.62 million in the last financial year. | 
No comments:
Post a Comment