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Penny Share Review 256

11 October 2004

The ‘Enterprise Network’ section of the Sunday Times provides a progress report on Air Music & Media Group (AMU), following its original feature in September last year. The Company has indeed taken the advice of the paper’s panel of experts by being more bold in its acquisition strategy through the recent purchase of Redworth for £27.6m. This has given the Group the opportunity to make a key step towards vertical integration. The CEO, Mark Frey and the Commercial and Marketing director, Michael Infante say that there is no reason why they could not do the same thing with a big North American or European Wholesaler. The share remained unchanged at 8.25p today.

Speculation that “a major acquisition was looming”, led to the shares in cash shell Alltrue Investments (ATR) rising, reported the Express on Saturday. The stock nudged higher by 0.18p to 2.55p.

The Sunday Telegraph talked about the impact of expectations of the Chinese economy on various stocks, including Griffin Mining (GFM). The paper believes the fall in the share price since it tested the 30p levels in February 2004, was triggered due to a change in sentiment towards China. Griffin’s shares retreated by 1.25p to 21.00p on Monday.

Vince Power of Mean Fiddler Music Group (MEF.L) is profiled in the Sunday Telegraph. He explains how the last week has been the worst in his 40 years in business life, following the resignation of the new CEO Dean James and the shelving of a £11.8m share sale and £5.7m acquisition. He did not discuss in detail why he replaced James. The stock was unmoved at 45.00p today.

The fund raising and Board changes at OFEX Holdings (OFX.L) is profiled in several of the weekend newspapers. The new CEO, Simon Brickles said the funding secures the future of Ofex and that “a stock exchange should be like a bank. Its financial position should be beyond doubt”, as reported by Saturday’s Telegraph. On the same day, the Independent said that market makers Winterflood invested £700,000 for a 16.6% stake and that a bid from Zyzygy is unlikely to succeed. The shares moved 0.25p higher to 7.00p on Monday.

Oxus Gold’s (OXS) shares shone higher on Friday as traders believe production at its Uzbekistan mine was well ahead of internal budgets, reported the Daily Express from Saturday. On Monday the share shone slighter higher again by 0.25p to 54.25p.

The ‘Weekend Share Watch’ of column of the Financial Times profiles Petrel Resources (PET) and says how it has cultivated relationships with tribal leaders and technocrats since 1997, but warns that connections alone will not win contracts. If it succeeds the pay out could be enormous, but so could the risks. One field, Hamrin, is reported to be in the infamous Sunni Triangle. The stock moved down by 7p on Monday to 122.00p.

The Saturday editions of the Guardian and Independent reported on the shares in River Diamonds (RVD.L) moving higher on Friday in response to an announcement that exploration rights had been secured on 5,000 hectres in Mato Grosso state in Brazil. The share remained unchanged at 3.13p today. “Word that next week’s update” on Toledo Mining’s (TMC) nickel project in the Philippines “will impress”, lifted the shares on Friday, the Independent briefly noted. The stock stood unmoved at 2.50p on Monday.

Warthog (WHOG) rebounded on Friday, due to a “big seller” being cleared out, according to Saturday’s Express. Shares in the game developer advanced by 0.10p on Monday to 0.53p.

Monday’s prices, quoted above, were taken just after 12.30pm on 11 October 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.

Albidon (ALD) – Nickel exploration update.

Billam (BLL) – Statement re investee company.

Eurovestech (EVT) – Additional listing.

Matrix Comms (MXC.L) – Contract win.

Mean Fiddler Music Group (MEF.L) – Withdrawal of resignation.

Symphony Plastics (SYM) – Court hearing.

Zi-Medical (ZIM.L) – Contract.

Look out for this week

Monday, 11 Oct – UK Trade & BRC Retail Sales Monitor.

Tuesday, 12 Oct – Nothing of note.

Wednesday, 13 Oct – UK unemployment rate and Bank of Japan interest rate announcement.

Thursday, 14 Oct – Nothing of note.

Friday, 15 Oct – Nothing of note.

The next Penny Share Review will be posted on Monday, 18 October 2004.

Compiled by Jason Robertson

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.