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Penny Share Review 183

Monday 12 May 2003

Cybit (CYH) - In an article on telematics in Monday's Financial Times(FT), in which the question, "Are telematics an accessory or a saviour" is posed, the Chief Executive of Cybit says that many external factors are forcing managers to keep a tight control on costs of vehicle fleets. The paper comments that all the signs are that demand for telematics must grow due to possible EU legislation on driver hours and impending motorway toll charges. The stock was unchanged on Monday at 10.20am at 0.455p.

Lombard Medical (LOM.L) - Several of the weekend newspapers report on the proposed management buyout of the Group, in which shareholders are being offered shares in private company AMT. The weekend FT advises shareholders to sit tight for the moment, due to the uncertainty of raising further funds and timing of commercial sales. The shares nudged up 0.125p on Monday morning at 10.20am to 1p.

Petrel Resources (PET) - The Daily Telegraph reports that Petrel is to raise £60m from a share placing to finance the development of oil fields in Iraq. The paper says Chief Executive David Horgan is confident that Petrel's title to the oil fields will be recognised by the new administration in Iraq. He is planning on travelling to Baghdad within the next three weeks to re-establish contact with officials at the Iraqi oil ministry. The weekend FT recaps on the story to date at Petrel. Private investor Douglas Wright, who owns 2% of the Group, estimates the shares could be worth £10 each if it gets the go-ahead on the Basra fields, the paper reports. However, house broker Rowan Dartington is more cautious, saying there are many question marks, including what the attitude of the new administration is going to be. The stock experienced a strong rally on Monday morning, and was sitting at 11.25p at 10.20am, representing a 66% gain on Friday's closing price of 6.75p.

Proactive Sports (PAS.L) - In an article in the sports section of Saturday's Independent, the issue of conflict of interests in which several football club managers and players have small shareholdings is discussed at length. The Professional Football Association Chief Executive, Gordan Taylor, and former sports minister Kate Hoey both believe there is a need for independent regulation. Chief Executive Paul Stretford strongly defends the criticism by saying the Football Association has a regulation that allows individuals to own up to 10% and there is "no suggestion whatsoever that his shareholders - such as the Newcastle manager Robson - have acted improperly". The paper also mentions it has hardly "been a money spinner", as most of the player or manager shareholders acquired shares at the flotation price of 25p. At 10.20am this morning the stock remained unchanged on the day at 4.5p

Ronson (RON.L) - The weekend FT reports on the rejection of a cash bid from non-executive director and major 30% shareholder, Farzad Rastegar, which valued the Company at 5 to 10% above its net asset value of £1.5m. Two further bids have been made, which require Mr Rastegar's approval, from whom confirmation has not been given according to the Board. At 10.20am on Monday, the stock moved up 0.11p to 0.85p.

Screen (SEN.L) - The Group features in the 'Weekend share watch' of the Weekend FT. The paper reports that "analysts believe Screen is over the worst and if it continues to secure contracts, expect a move back into the black in 2004". The shares experienced a 21% rise on Monday morning and were trading at 14.25p at 10.20am.

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.

Tandem Group (TND) - Director shareholding.
Ultimate Finance Group (UFG) - Director shareholding.

Look Out For This Week

12 May - UK Producer price inflation.
13 May - Nothing of note.
14 May - UK Unemployment and average earnings.
15 May - UK BOE Inflation report.
16 May - G8 Finance ministers meeting.

Compiled by J Robertson

Penny Shares Online - penny shares research and information service.




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