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Penny Share Review 215

Monday 22 December 2003

Conder Environmental's (CDE) interim results, which saw it slip into the red to the tune of £392,000, got a brief mention in Saturday's Independent. The Daily Mail of the same day described the results as "dire". However, Chairman Mike Killingley noted in the accompanying statement that it was difficult to predict the timing of contract awards in the Vikoma division, but the management believe that the second half "will show a very significant improvement on the first half, and the group will be profitable for the year as a whole" and that "this better second half performance will be sustained and built upon, with all parts of the group contributing to earnings growth." Nevertheless, at 10.15 the downward momentum appears to be continuing as the shares were off 4p from Friday's close to 11p in what is a thin market.

Saturday's Express noted that speculative buying in Earthport (EPO) had moved the shares ahead on Friday. The shares were unchanged at 2.75p from Friday's close at 10.15.

Envesta Telecom (EVS), according to the weekend's Business, "is a prime example of an agile young operator". The article reviews the three lines of business noting, "Positive cashflow erased all debt. Not bad for a second operating year." Moreover, "low costs and high quality give Envesta an operational advantage". Acquisitions are expected and new funds are likely to be required for this and any future capital expenditure. At a share price of 2.5p and based on broker Semour Pierce's forecasts the high prospective PE of 13 falls to under six in 2005. The piece concludes, "Although a lot can happen in the telecoms market between now and then, taking a stake in this thriving young business could prove a rewarding investment." The shares were ahead by 0.38p from Friday's close to 2.88p at 10.15.

A narrowing of losses at the interim stage, in line with expectations, saw the shares in Eurovestech (EVT) move forward, the weekend Financial Times reported. The loss was affected by the decline in value during the period of the Company's stake in Knowledge Support Systems Group - these shares were sold in June. At 10.16 the shares were up by 0.13p to 12.75p from Friday's close.

Monday's Independent reviewed the 'winners and losers' of 2003 and featured Oxus Gold (OXS). Oxus shares were the second best performing share on AIM behind Caledon Resources, which, according to the newspaper, "is showing a return of 806%". From Friday's close the shares were off by 2.5p at 76.75p at 10.16.

The Guardian on Saturday picked up on intra-day movements in Scipher's (SIP.L) shares. Early trading saw the shares move ahead as news that the Company's microdisplay business, MicroVue, had been pushed into liquidation was announced. The intellectual property developed by the business will remain with Scipher and the closure should remove a significant cash drain from the parent business. However, the stock weakened on granting of 10m options, with an exercise price of 3.5p to chief executive Rudolph Burger, although he also bought 100,000 shares at 3.2p. The shares were unchanged at 3.5p from Friday's close at 10.17.

SWP Group (SWP) featured in the weekend's Financial Times and Saturday's Independent after it reported on a "particularly frustrating year", with good progress in a number of areas not being enough to do anything about increasing operating losses. The Independent also picked up on the warning that trading in the first five months of the current year was below forecast. At 10.24 the shares were unchanged 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.

CMS Webview (CWV) - Result of EGM.
Fairplace Consulting (FCO.L) - Board appointments & Trading.
Intellexis (ILX) - Interim Results.
Northern Petroleum (NOP) - Acquisition.
Pipex Communications (PXC.L) - Additional Listing.
Tertiary Minerals (TYM) - Further re Final Results.

Look Out For This Week

Dec 22 Monday - Cheerful Scout AGM, Earthport AGM, UK revised business investment (Q3).
Dec 23, Tuesday - nothing of note scheduled.
Dec 24, Wednesday - nothing of note scheduled
Dec 25, Thursday - market closed.
Dec 26, Friday - market closed

The next Penny Share Review will be posted on Monday, 5 January 2004.

Compiled by Andrew McLintock.

Penny Shares Online - penny shares research and information service.




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, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.