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Penny Share Review 156

Monday 28 October 2002

The Weekend's Comments

The Sunday Times appears to want to bask in the glory of another 'winner'. In its 'sharewatch' column it mentions that shares in Griffin Mining (GFM) "have risen sharply since we mentioned it last month." Better-than-expected results from the zinc-gold project in Caijiaying in China announced on 7 October have been the cause of recent buying activity and the shares have risen to 4.75p. The newspaper also speculates, "one or two bidders are sniffing round the company", but reckons the present market value of £2m even after the rally is too low and that a successful offer, "will have to be much higher." The chairman is said to have bought in at the peak and holds shares at 20p. However, The Sunday Times may be doing the Company a disservice, as at 4.75p it would be valued at £4m rather than £2m as it claims. Anyway, the shares at 10.18 were up 0.875p to 5.875p from Friday's close.

Saturday's Independent noted that the shares in Hot Group (HOT.L) firmed 2p to 15.5p after the Company disclosed that Herald Investment Trust had purchased 945,000 shares in the recent placing. The placing raised £375,000 before expenses, which is to be used for working capital purposes and also to fund the acquisition of a complimentary on-line business. Herald Investment Trust (HIT) is an Investment Trust, which seeks to achieve capital growth, in excess of the average, by investing in smaller quoted companies in the technology, communications and multi-media sectors. The fund now holds 8.6%. The shares at 10.18 were up 1p to 16.5p from Friday's close.

The Sunday Telegraph reckons that shareholders in Maclellan Group (form. Jordec) (MLG) who have yet to receive any dividends, "are becoming restless." The shares have fallen 20% since the acquisition of Broadreach Group back in May and this may have alerted some of the bigger players. The newspaper adds, "Mowlem, Mitie and ISS, the highly acquisitive Danish Group, are rumoured to be circling." However, the article concludes that if there is no bid then the Chairman Bob Morton "must be examining ways of realising shareholder value at the current depressed levels. Buy" The shares appear to have responded positively to the 'buy' recommendation, as at 10.19 the shares were up 1.5p to 78.5p from Friday's close.

Saturday's Independent in a review of the week takes a tough line on Rage (RGE.L). The article comments that dropping the Software part of its name back in June "was grimly appropriate, given that the computer games publisher has provided little software and much shareholder rage." Rage's story is one of missed opportunities and financial chaos and that the shares "reflect the disappointments of the past and challenges of the future. Only for the brave." The shares were unchanged at 1.375p from Friday's close at 11.13.

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.

Intellexis (ILX) Interim Results.
Protec Plc (PRC) Final Results, Director Change.

Look Out For This Week

28 Oct - Protec (F), Intellexis (I), Jap Industrial Output (Sept).
29 Oct - UK consumer credit (Sept).
30 Oct - Ger Retail Sales (Sep).
31 Oct - France Unemployment (Sep).
1 Nov - UK Manufacturing CIPS.

Compiled by Andrew McLintock

Penny Shares Online - penny shares research and information service.




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