| From UK-Analyst.com: Wednesday 24th July 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 In a long-awaited piece of promising economic news for the Eurozone, it has emerged that private sector industry has returned to growth. The Markit Eurozone Purchasing Managers' Index shot up from 48.7 in June to 50.4 in July, edging above the 50 mark which separates growth and contraction. Markit explained that the improvement was a manifestation of several factors, including growth in the manufacturing sectors of "peripheral Eurozone countries". Chris Williamson, Chief Economist at Markit, explained, "The best PMI reading for one-and-a-half years provides encouraging evidence to suggest that the euro area could - at long last - pull out of its recession in the third quarter." Growth in Japanese exports slowed in June, further fuelling rumours that the ongoing slowdown in the Chinese economy is dampening demand for Japanese goods. Japanese exports managed to grow by 7.4% in the year ended June, a performance which was significantly below analyst expectations for 10.3% growth. Exports to China, one of Japan's two largest trading partners alongside the Eurozone, rose by 4.8% in June from a year ago, much less than the 8.3% annual rise in May. Yasuo Yamamoto, Senior Economist at Mizuho Research Institute, warned, "China's slowdown is starting to become more dangerous. Japan's economic growth is likely to remain strong in the second quarter due to consumer spending, but exports won't be much of a factor." Apple, the most valuable company in the world, released third-quarter profit figures above analyst expectations as sales of its iPhones surprised on the upside. Sales of the iPhone 4 performed particularly well as Apple slashed prices for the product in emerging markets before it halts production of the now out-of-date model. The good level of iPhone sales seemed to overshadow a poorer display on the iPad front and should go far to ease investor fears over a crowded smartphone market - for now at least. However, some analysts feel that Apple needs to launch a new product quickly if it is to appease investors in the short-medium term. Mizuho analyst Abhey Lamba commented, "Although the iPhone refresh will help the sentiment on the stock, we believe the company needs to launch a new product category to drive estimates materially higher." ADVERTISEMENT 
At the London close the Dow Jones was up by 3.53 points at 15,564.21 and the Nasdaq grew by 23.77 to 3,055.17. In London the FTSE 100 closed up by 22.99 points at 6,620.43 and the FTSE 250 grew by 12.92 points to 14,835.13. The FTSE All-Share increased by 9.27 points to 3,506.29 while the FTSE AIM Index inched up by 1.24 points to 721.10.  Broker Notes Beaufort Securities stuck with its "buy" recommendation on drinks giant Diageo (DGE), encouraged with the group's exposure to growing markets. The broker notes that Diageo has received consent from the Chinese authorities to buy the remaining 47% stake in Sichuan Chengdu Shuijingfang Group Company. Beaufort feels that this move is in line with Diageo's target of generating 50% of its revenue from fast growing economies by 2015 and that the targeted middle class consumers from these markets are likely to fuel the company's growth. The shares dropped by 1.5p to 2,018.5p. Panmure Gordon initiated coverage on London property owner Quintain Estates (QED) with a "buy" recommendation and 104p target price. The broker believes that Quintain Estates offers investors exposure to London residential and commercial real estate development and investment at a significant discount to NAV (104p per share). Panmure is also impressed with Quintain's management team, arguing that it is creating major new sources of income and managing income transition, while progressing both Wembley and its fully-funded Greenwich development. The shares were up by 4.5p at 90.5p. Shore Capital maintained its "buy" stance on transport operator National Express (NEX) on the back of today's half year results. The broker is impressed with how margins have doubled in its US division since 2009 and said that "cash generation continues to be strong as they focus on returns rather than growth". Here in the UK, Shore Capital is of the opinion that the outlook for the remainder of the year is positive for this business as the impact of subsidy cuts on concessionary travel has now lapsed. The shares climbed by 9p to 254.5p. ADVERTISEMENT Get free trading guides from Evil Knievil (How to successfully short stocks), Zak Mir (Top AIM market picks for 2013) and other top financial commentators by CLICKING HERE 
Blue-Chips Airline operator easyJet (EZJ) posted a 10.5% increase in revenues to 1.142 billion pounds for the three months ended 30th June as the firm benefited from increased capacity and a hike in revenue per seat. As 73% of seats are booked for the remainder of the year, EasyJet expects profit before tax for the year to September to come in between 450 million pounds and 480 million pounds. The group also reserved special praise for its expansion into routes covering Italy and Switzerland as other operators pulled out of these markets. The shares flew by 49p to 1,385p. Sweetener manufacturer Tate and Lyle (TATE) conceded that its US business has experienced some "volume softness" within its Beverage sector, in a fall which was blamed on the unusually cold spring and slow start to the summer. Despite this and a disappointing performance from its US specialty food business, Tate and Lyle maintained its full year pre-tax profit guidance of around 323-365 million pounds. Broker Investec stuck with its "buy" recommendation and 900p target price on the back of the update. The shares ended 29.5p sweeter at 853p. B&Q and Screwfix owner Kingfisher (KGF) claimed that it is in line to meet management expectations as improving weather in the UK prompted a surge in garden furniture sales. Overall, total group sales were up by 5.2% over the 10 weeks ended 13th July. Surprisingly, the French business delivered a 1.1% rise in sales against a backdrop of an uninspiring economic climate, ahead of analyst expectations for a fall of 0.8%. The shares grew by 11.8p to 396.6p. Mid Caps Pub owner JD Wetherspoon (JDW) revealed that like-for-like sales were up by 3.5% for the 11 week period ended 14th July, while total sales increased by a better-than-expected 6.2%.The boozer-owner went on to warn that the biggest dangers to the pub industry are the VAT disparity between supermarkets and pubs and the continuing imposition of stealth taxes. Despite these factors, the group expects to achieve "a slightly better outcome" for the financial year than originally anticipated. The shares were up by 82p to 750p. Machinery specialist Renishaw (RSW) posted a 2% fall in pre-tax profits for the year ended 30th June despite a 4.5% increase in revenues to 346.9 million pounds. Renishaw explained that this slight slump in pre-tax profits was lower than expected "due to investment for a higher level of revenue than actually achieved." Broker Numis continued to sit on the fence after the update, re-iterating its "hold" recommendation on the group with a target price of 1,700p. The shares fell by 40p to 1,527p. Telecoms group TalkTalk Telecom (TALK) confirmed that revenues for the 3 months ended 30th June edged up by 1.7% to 421 million pounds and claimed that it is in line to meet full-year guidance. The firm boasted that it was able to add 160,000 new TV customers during the quarter as "awareness of its proposition has grown". Looking ahead, the group has pledged to deliver strong EBITDA growth in FY15 and subsequent years and, in turn , maintain current dividend growth. The shares finished down by 6.6p at 245.4p. Small Caps Imaginatik (IMTK), which describes itself as a "full service innovation provider", announced a slight fall in revenues from 3.06 million pounds to 3.01 million pounds for the year ended 31st March, while its full year loss narrowed slightly to 1.14 million pounds. Imaginatik partly attributed this fall to a lower level of renewals than achieved in previous years and several contract losses throughout the year. The firm - which has clients such as Ladbrokes and Windsor Foods - went on to stress its confidence in the future and cited "a strong pipeline of business opportunities". The shares were down by 0.005p at 0.07p. Security Research Group (SRG) admitted that operating profits almost halved to 6.6 million pounds for the year ended 31st March 2013. The update seemed to hint that the firm's commitment to satisfying the terms of a contract with the MoD and increased focus on marketing was to blame for the plunge in profits. Security Research went on to re-affirm the fact that the Specialist Electronics division is its main focus and argued that the aforementioned marketing efforts will result in a "re-energised" market place. The shared dived by 14.5p to 71.5p. Oil exploration outfit Enegi Oil (ENEG) has confirmed that Wood Group has signed up to help completion of the Field Development Plan and submission of the Environmental Statement required to gain exploration approval for the development at the Fyne Oil Field. Separately, the firm announced that it has raised 24.8 million pounds at 8.1p per share - a 12% premium to yesterday's closing price - with the funds raised to be primarily used to facilitate the work at Fyne. The shares surged by 0.625p to 8p. 
Mobile media group Mobile Streams (MOS) revealed that revenues from continuing operations more than doubled to just over 50 million pounds for the year ended 30th June. The mobile application retailer said that its mobile internet subscribers have nearly doubled to 3.41 million active members, driven by increased traction in the Latin American markets of Argentina, Mexico and Colombia. The shares tumbled by 9p to 71.5p. IQE (IQE), a supplier of advanced semi-conductor wafer products, claimed that the group's first half performance is likely to come in ahead of market expectations, with first-half revenues and EBITDA expected to come in at 63 million pounds and 10 million pounds respectively. Against the backdrop of the continued growth of the wireless market as 4G and LTE devices grow in popularity, IQE expects healthy demand for its electronics which are essential in such products. The shares lost 0.25p to close at 25.5p. Ebiquity (EBQ) saw revenues increase by 21% to 64 million pounds for the year ended 30th April while pre-tax profits surged by 148% to 6.6 million pounds. The marketing group's return to growth is consistent with increased global advertising budgets while earnings were also boosted by contributions from acquisitions and a squeeze on costs. Crucially, the firms analytics division - which measures the effectiveness of different marketing campaigns and accounts for around 60% of Ebiquity's revenues - saw sales nudge ahead by 6% on increased demand from Germany and Russia. The shares jumped by 7p to 99p. | 
No comments:
Post a Comment