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Penny Share Review 498

Monday 22 June 2009

Fall in the price of Earthport (EPO) was reported by Saturday’s Express. The piece commented that this was despite “buy support “ from Panmure Gordon, which believes the Company will have to become profitable over the next 2 years or face being taken over at a “fraction of its true value”. The Times on Saturday also highlighted this, while Saturday’s Telegraph commented that the shares had slipped as bid hopes faded away. The price was 0.75p weaker at 56.75p following this attention.

Formjet (FMJ) enjoyed a 45% rise in its share price after announcing the sale of Panda Software and appointment of Andrew Monk to the Board, according to Saturday’s Daily Express. The Daily Mail on Saturday mirrored this and the momentum appeared to spill over into this week, where the price appreciated by a further 0.075p to reach 0.475p.

Lonrho (LONR) appeared in a full-page article in The Mail on Sunday, though this was more focused on LonZim, reporting that South African Bank AMB has requisitioned an EGM to oust the current board and sell assets. Shares in Lonrho meanwhile added 0.38p to reach 9.88p.

Derek Pain’s “No Pain, No Gain” section of The Independent on Saturday included Nighthawk Energy (HAWK), and reiterated abandonment of the Jolly Ranch deal. Mr Pain highlighted Daniel Stewart’s 102p target price and Hanson Westhouse’s 97p, commenting that the situation remains a promising play, though it could be sometime before the shares recover from “such a brutal setback.” He went on that the business may need to raise funds from elsewhere and that a heavily discounted rights issue may be an option. The shares were 3.00p lower at 30.00p this morning.

Saturday’s Daily Express commented that shares in Tanfield Group (TAN) had increased markedly following news of the appointment of a Non-Executive Director. However, we would suggest that the 1-for-5 share consolidation undertaken by the business is more likely to be the reason for the movement. The price was 1.25p better at 72.50p earlier today.

The Daily Express on Saturday highlighted Twenty (TWE) CEO, Ian Lancaster’s, purchase of shares, noting that he now owns just under a quarter of the Company. The shares were 0.375p better at 2.25p earlier today.

Prices above were taken at 10:33am on Monday, 22 June 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.

Albidon (ALD): Company Update.

Beowulf Mining (BEM): Metallurgical Test Commenced.

CoffeeHeaven International (COH): Holdings in Company.

Condor Resources (CNR): Issue of Shares.

Hidefield Gold (HIF): Updated Resource Estimate at Don Nicholas.

ILX Group (ILX): Preliminary Results.

John Lewis of Hungerford (JLH): Directorate Change.

MBL Group (MUBL): Contract Win.

Mercator Gold (MCR): Silver Swan Update.

Red Rock Resources (RRR): Jupiter Mines Ltd Update.

Vatukoula Gold Mines (VGM): Operational Update.

Westside Acquisitions (WST): Final Results.

Look out for this week

Monday, 22 June – Results from ILX Group (ILX) and Westside Acquisitions (WST). Rightmove Monthly House Price Index (June).

Tuesday, 23 June – Major British Banking Group Stats (May).

Wednesday, 24 June – CBI Monthly Distributive Trades Survey (June).

Thursday, 25 June – Nothing of note.

Friday, 26 June – Land Registry House Price Index (May).

Diary items source: Fidessa.

The next Penny Share Review will be posted on Monday, 29 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.