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Penny Share Review 134

Monday 27 May 2002

The Weekend's Comments

After rebutting numerous attempts by rebel shareholders to oust the board and change the focus of the Company, e-primefinancial (EPF.L) was granted a US banking licence last week. Nevertheless, Saturday's Independent reported that the market was less than impressed as the shares slid 0.5p to 3.25p. Apparently, concerns over the quality of the licence edged the shares south. At 13.24 the share price was unchanged at 3.25p from Friday's close.

The build up of Grosvenor Land's (GVR.L) stake to just under the 30% mark at which it would have to make a bid for Property Internet is mentioned briefly in Saturday's Daily Express. Phil Edmonds, the former England spin bowler and chairman of Grosvenor, has been appointed to the board of Property Internet. The share price was unchanged at 10.5p from Friday's close at 13.24.

Derek Pain in his regular investment column in Saturday's Independent marked out the road to receivership for John Lusty (JLG.L). Although he never recommended the shares he seemed surprised how quickly the receivers were called in after the Company revealed a half-year profit of £150,000 in December and a solid trading statement in March. This he speculated was down to either companies "misreading their markets more frequently" or that "trading conditions are becoming extraordinarily volatile." The shares were suspended on 13 May 2002.

Osmetech (OMH.L) is the centre of the Weekend FT's smaller companies focus. The Company's prospects are linked, naturally, to the ability of the e-nose technology being able to deliver test results more quickly. Approval by the US Food and Drug Administration for Osmetech's urinary tract infection (UTI) device has already been granted and the Company is awaiting approval for a bacterial vaginosis analyser. Patent protection in Europe and the US for the UTI device means that Osmetech has a head start on its rivals in the e-nose industry and is seeking to build on this by signing a distribution agreement. The first upfront payments and royalties are expected to come on stream early next year and break-even is expected by 2004. Broker Teather & Greenwood forecasted that on the successful launch of all three lead products in the US, 2005 revenues could reach £18m. However, chief executive James White suggested that the Company is just as likely to be "snapped up by one of the giant diagnostics groups." From Friday's close the shares were up by 0.5p to 11p at 13.25.

Global political and economic uncertainty has pushed the price of gold up in recent weeks and this has had a knock on effect on gold exploration and mining companies. Shares in Oxus Mining (OXS) added 1.5p to 13.5p despite announcing a £5m Placing and Open Offer at 10p per share to fund Phase I construction of the Uzbekhistan mine, The Times from Saturday noted. The newspaper remarked that Oxus is benefiting from the gold price rise as its Uzbekhistan project is based on a price of $250 per ounce against the $320 evidenced last week. The Daily Mail from Saturday added that as a result Oxus is likely to reach a positive cash flow position within 12 to 18 months. At 13.26 the shares were down 0.75p to 12.75p from Friday's close.

Rage (RGE.L) continues to attract press coverage. Following last week's agreement with Lamborghini to feature the world famous cars in an exclusive range of video games, The Independent and The Daily Express commented on Saturday on rumours that an equity fundraising was imminent. The announcement regarding the Placing and Open Offer was made this morning, the details of which can be found by clicking on the link below. The shares were down 0.25p at 13.27 to 1.625p from Friday's close.

Speculation about the introduction of a plastic bag tax in the UK and a positive broker report saw shares in Symphony Plastic Technologies (SYM.L) have a run up last week. The Broker Buys section of Saturday's Daily Mail summarised the house broker, Cannacord's report that recommended to 'buy' at 32p. It noted that Symphony was ahead of the competition by at least two years and was already supplying customers with high-quality polythene products at competitive prices. At 13.27 the shares stood at 41.5p, up by 1.5p from Friday's close.

Today's 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.

Cytomyx (CYX) - New contract.
Mean Fiddler (MEF.L) - Radio Station purchase.
PrimeEnt (PME.L) - Final Results.
Rage Software (RGE.L) - Placing and Open Offer.
TransEDA (TRA.L) - Trading Statement.
Westside Acquisition (WST) - Director Shareholding.

Look Out For This Week

27 May -
28 May - US consumer spending (Apr)
29 May - UK consumer credit
30 May -
31 May -

Compiled by Andrew McLintock

Penny Shares Online - penny shares research and information service.