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Penny Share Review 254

27 September 2004

Talk of consolidation in the independent ATM market reached the pages of the Sunday Times. In particular the broadsheet reckoned that Cardpoint (CASH) was preparing to make a bid for Moneybox (ATM.L), whose share price has collapsed in the wake of a profit warning two weeks ago. The bid is apparently going to be worth as much as £70m and is expected to be launched this week. In fact, this morning Moneybox confirmed that it had received a number of approaches that could lead to a bid, so we could get more detail of who has shown an interest later in the week. The shares were up 1.50p from Friday’s close at 109p.

The ‘Small Companies Notebook’ of Monday’s Independent picked up on the latest developments at Claims People (CLM.L). Bob Morton’s investment vehicle Southwind revealed that it had bought 3m shares or 3% of the Company, which adds to Mr Morton’s roster of investments such as MacLellan (MLG), London & Boston (LBN) and Multi Group (MLT). The Independent provides no clue as to what the motivation is behind his most recent move, but added that the Company according to gossip is “close to adding a couple of other household names to its client list.” The shares were unchanged from Friday’s close and stood at 2.75p.

Edmond Jackson, in the Sunday Telegraph, runs his rule over Desire Petroleum (DES), noting that Falkland Island oil “is back in the frame”. He cautions, however, that there is a difference between investors and speculators, with the former acting on drilling results, while the latter “know there are trading profits to be made from anticipation” of the results. Despite Desire indicating that “a number of significant prospects are emerging”, Mr Jackson considers the stock to be too speculative, although he does add that by waiting for prospects to firm up he “might miss a party in the shares well before then.” The shares were unchanged from Friday’s close and stood at 25.25p.

Monday’s FT got the scoop on the latest events at Petrel Resources (PET), with the paper noting that it is close to receiving approval to develop an oil field in Iraq. The Company did not disclose which of the three Iraqi oil fields that it had applied for development rights for would receive the go-ahead. It added that the Iraqi oil ministry had invited it for “an urgent and direct discussion to finalise all technical and commercial matters” related to one of its three tenders. Click on the link below for more detail. The shares have responded favourably to the news and are up 11.50p from Friday’s close to stand at 61.50p.

News of the trial of Stanelco’s (SEO) tray-lidding technology with Grampian Country Food made it in to Saturday’s Daily Express. The shares were unchanged from Friday’s close and stood at 6.00p.

Tandem Group (TND) featured in Saturday’s Times’ ‘Stockwatch’ column. It noted that investors might not be too worried about the “unexciting interim results” released last week as prospects at the bicycle maker “are broadly looking up”. Margins at the core bicycle business have been under pressure from foreign imports, but the outdoor equipment market has a “rosier outlook”. One of Tandem’s key competitors in this latter market, Hedstrom (UK), went out of business this year. The stock is valued fairly generously at just seven times its projected 2005 earnings and four times 2006 earnings, the paper noted. The shares were unchanged from Friday’s close and stood at 21.25p.

Monday’s prices, quoted above, were taken around 10.25am on 27 September 2004.

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.

Alizyme (AZM) – Interim results, clinical trial authorisation.

Flightstore (FLG) – Interim results.

Fulcrum Pharma (FUL) – Reorganisation and Directorate.

Pavilion Insurance Network (PVL) – Director appointment.

Pentagon Protection (PPR) – Placing and Additional listing.

Petrel Resources (PET) – Statement re Iraqi oil development.

Teleunit (TLU) – Director change.

Ultimate Finance (UFG) – Final Results.

Warthog (WHOG) – Holdings in Company.

Look out for this week

Monday, 27 Sept – Alizyme (I), Flightstore (I), Ultimate Finance (F), UK BBA mortgage lending.

Tuesday, 28 Sept – Envesta Telecom (F).

Wednesday, 29 Sept – Symphony Plastic Technologies (I), UK GDP (Q2 final estimate), US GDP (Q2 final estimate).

Thursday, 30 Sept – Cardpoint trading statement, UK CBI monthly industrial trends (Aug).

Friday, 1 October – nothing of note.

The next Penny Share Review will be posted on Monday, 4 October 2004.

Compiled by Andrew McLintock

Penny Shares Online - penny shares research and information service.