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Penny Share Review 200

Monday 08 September 2003

Unfortunately, the 200th edition of the Penny Share Review is somewhat bereft of newspaper comment on the companies we regularly monitor. In fact, only two got a noteworthy mention and their summaries are below.

Writing in The Business (Sunday), Andrew Griffiths 'AIM Investor' took a positive stance on GX Networks (GXN.L), formerly known as Zipcom. GX is seen as a consolidator in the UK telecom networks and hosting markets, with Firstnet Services the latest company to be absorbed into the Group in a £4.3mn acquisition. The trick for the Company will now be to show the effect of scale efficiencies that would take the business into overall profitability, a situation that Mr Griffiths believes could "offer significant upside" to the stock. As we know, the shares have already done well this year, but the rise seems justified on newsflow, including an enviable level of support from City institutions that have bolstered the Group's coffers on more than one occasion. The commentary finished by saying, "GX Networks is a different animal with a more plausible story. Its prospects are probably better than at any time during its short history. Buy." The response was commensurate with the article and by 09:42 this morning, the shares were 6.88p-mid, a rise of 0.25p from Friday's close.

Elsewhere, only Motion Media (MMD.L) got a mention, albeit a snippet in The Independent (Saturday) noting continued buying by Shore Capital's Colin Blackbourn, who now has a reported 8.7% stake. The shares had fallen 0.38p by 09:42, to 17.75p-mid and are likely to be quite volatile. The Company has tried to temper rumours of an imminent large contract, but speculators are still willing to pay up for the shares, presumably on the basis of there being 'no smoke without fire'.

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.

ARC Risk Management (ARC.L) - New agreement with HSBC.
Beaufort International Group (BFG) - Final Results and Placing.
The Claims People Group (CLM.L) - Interim Results and Acquisition.
Host Europe (HER) - Notice of Results.
MICE Group (MEG) - Trading Statement.
Sibir Energy (SBE) - Directorate change.
The Wigmore Group (WGT.L) - New contract with JD Wetherspoon.

Look Out For This Week

September 08, Monday - UK Producer prices (Aug), Industrial Prodn. (Jul); US Consumer credit (Jul).
September 09, Tuesday - UK Trade in goods and services (Jul); Eurozone GDP (Q2); US Wholesale inventories (Jul); Ennstone (ENN.L) Interims.
September 10, Wednesday - No US/UK data scheduled.
September 11, Thursday - US Jobless claims, International trade (Jul).
September 12, Friday - US Retail sales (Aug)

The next Penny Share Review will be posted on Monday, 15 September 2003.

Compiled by Andrew Thacker

Penny Shares Online - penny shares research and information service.