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Penny Share Review 523

Monday 14 December 2009

Coffeeheaven International (COH) appeared in Saturday’s Times, which drew attention to an increase in the stock after confirmation that Whitbread was in talks to buy the Group for £32m. This was also pointed out by Saturday’s Express, however the shares were unchanged at 22.50p earlier today.

Today’s Independent reiterated news that Firestone Diamonds (FDI) intends to start development of commercial operations at its kimberlite project in Botswana, highlighting that remaining development costs can be funded from existing cash reserves. The article stated that “numbers look good too”, with $16 per tonne revenue against costs of $6.50 per tonne, and the positive momentum appeared to spill over into this week, where the stock was 0.25p higher at 35.25p.

Saturday’s Daily Express reported increase in the price of Imaginatik (IMTK), following news of its contract extension with Chubb, though there was no change to the price of 8.00p during Monday morning’s trading.

In Derek Pain’s “No Pain, No Gain” section of The Independent on Saturday, Mr Pain suggested that he was disappointed with the short-term performance of Nighthawk Energy (HAWK), believing that the stock should be much higher. Outlining that there is still substantial doubt, he went on that estimates of the Group’s worth remained “way ahead of its current valuation”, detailing the Growth Equities & Company Research price target of 227p. Although concerned about the performance, Mr Pain said he is “sticking with them”, and the price was 0.50p better off at 32.50p earlier.

Shares in Omega Diagnostics (ODX) fell after the Company warned annual revenues would drop below expectations, according to the Daily Express on Saturday. The price was 0.50p lower at 28.50p.

The Business section of the Sunday Times included an article regarding Frank Timis this week, noting that the £60m flotation of his company, African Petroleum, had been halted by the London Stock Exchange, due to concerns about his past. Sound Oil (SOU) previously confirmed that it was in potential reverse takeover discussions with a company majority owned by Mr Timis, but since then updated that these had collapsed. Shares in SOU were 0.04p lower at 1.61p this morning.

Tanfield (TAN) was included as one of the “pre-budget winners” by Saturday’s Daily Mail, reporting that the ‘Electric Car’ initiative should impact the business. Nevertheless, the stock was 0.50p poorer at 31.00p following this press attention.

The prices above were taken at around 10:33am on 14 December 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.

Arcontech Group (ARC): New Contract.

Caledon Resources (CDN): Publication of Presentation.

Formation Group (FRM): Re Joint Venture.

Frontier Mining (FML): Pre-close Operational Update.

Global Brands (GBR): Senior Management Appointment & Operations Update.

ILX Group (ILX): £1m Placing and Notice of Meeting.

Range Resources (RRL): Significant Puntland Milestone.

Red Rock Resources (RRR): Issue of Equity.

Regency Mines (RGM): Issue of Equity.

Starvest (SVE): Investment Performance.

Surgical Innovations (SUN): Entry into Veterinary Market.

Ten Alps (TAL): Interim Results.

Look out for this week

Monday, 14 December – Rightmove Monthly House Price Index (December). Results from Ten Alps (TAL).

Tuesday, 15 December – RICS UK Housing Market Survey (November). UK Monthly Inflation Figures (November).

Wednesday, 16 December – Monthly UK Unemployment Figures (November).

Thursday, 17 December – UK Monthly Retail Sales Figures (November). CBI Monthly Distributive Trades Survey (December).

Friday, 18 December – UK Consumer Confidence (December). CML Mortgage Lending Figures (November).

Diary items source: Fidessa.

The next Penny Share Review will be posted on Monday, 21 December 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.