Register and receive the Penny Share Guide and Equity Market Update

Penny Share Review 494

Tuesday 26 May 2009

Alliance Pharma (APH) appeared in Saturday’s Daily Mail, which noted increase in the shares after entrepreneur Nigel Wray increased his stake in the Company. APH also featured as the “Tiddler to watch” in The Times on Saturday, which reiterated this and added that Numis highlighted the surprise success of its Deltacortril steroid, doubling sales estimates and increasing the target price to 15p. The price was a further 0.875p better off at 13.00p this morning.

The Daily Express reported that stockbroker Blue Oar has Dowgate Capital (DGT) “in its sights after building a near-28 per cent stake and making an offer”, on Saturday. The piece noted that Dowgate believes Blue Oar has undervalued the Company, and its shares remained unchanged at 5.50p after this comment.

Profit taking after Interim Results from First Artist Corporation (FAN) dragged the shares lower, according to the Daily Mail on Saturday, and the price was 0.50p lower at 24.50p earlier today.

Formation Group (FRM) comprised part of The Sunday Times, which reported that the business was being taken off the market in a private management buy-out worth £25m, backed by private equity house Gresham. It went on that the deal could be completed in June, subject to shareholder approval, and was expected to be at around 11p a share. Following this speculation, this morning the Company announced it is in discussion with Gresham regarding certain parts of the business, but provided no additional specific information (please see below). The shares improved by 3.50p, reaching 10.00p earlier.

Saturday’s Daily Mail reported that shares in Gold Oil (GOO) had increased after news of the completed 2D seismic survey offshore Peru, reiterating the Company’s confidence that oil bearing formations can be correlated across the neighbouring block. However, the momentum failed to spill over into this week, where the stock decreased by 0.02p to 4.13p.

Ian Lyall’s column in the Daily Mail on Saturday included Immupharma (IMM) as part of the Daily Mail share portfolio. He noted plans to sell if the shares retreat to 80p, but still thinks the stock has the ability to go above 100p, although he is unsure of when the trigger for that will be. The shares were 0.25p higher at 84.25p following this press attention.

The weekend’s Financial Times noted recent ‘director dealing’ by Arnold Rorholt, CEO of Norcon (NCON). The piece commented that the Company had hit a ‘purple patch’ over the last fortnight, rising to an all-time high, though the shares were unchanged at 75.00p this morning.

The price of Verona Pharma (VRP) was healthier following its AGM, said Saturday’s Daily Mail, after earlier news that its RPL554 treatment had completed stage one and two of a clinical trial and been given approval for stage three. This trend appeared to continue, as the stock added 0.75p to reach 6.75 during Tuesday morning.

Prices above were taken at between 11:09am and 11:32am on Tuesday, 26 May 2009.

Announcements

The following companies, in which City Equities customers may have an interest, released announcements to the market this morning. These can be found by entering the relevant company name or ticker code in the search box on this site.

EMED Mining (EMED): Update on Gold Exploration in Slovakia.

Formation Group (FRM): Statement Regarding Press Speculation.

Lithic Metals and Energy (LMY): Secures New Title.

Omega Diagnostics (ODX): Launch of Quality Performance Product.

Ormonde Mining (ORM): Preliminary Results.

Pentagon Protection (PPR): Further Contract Award.

Supercart (SC.): U.S. Contract Win.

Look out for this week

Tuesday, 26 May – Results from Ormonde Mining (ORM). Bank of England Reverse Gilt Auction.

Wednesday, 27 May – CBI Service Sector Survey. Major British Banking Group Stats (April).

Thursday, 28 May – CBI Quarterly Distributive Trades Survey.

Friday, 29 May – UK Consumer Confidence Survey.

Diary items source: Fidessa / The Daily Telegraph (26 May 2009).

The next Penny Share Review will be posted on Monday, 1 June 2009.

Compiled by Chris Richards.




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddesdon, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.