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Penny Share Review 257

18 October 2004

Clem Chambers, the CEO of ADVFN, a stocks and shares website, writing in Sunday/Monday’s Business noted, “There is a huge selection of companies on AIM…This is good news because the best way to invest is to create a portfolio of shares to iron out your mistakes with your lucky gambles. That is not to suggest you shouldn’t be looking for value.” It is in this light that he comments on Eckoh Technologies (ECK), which he picks up as a “good example”, as its financials show it has a market cap of £21m, cash of £10m and sales of £62.5m. He concluded, “So stripping the cash out, you have a hi-tech modern media business with a 6:1 sales to market cap ratio for a net £10m.” The shares are up by 0.38p at 9.38p from Friday’s close.

A warning from Ennstone (ENN) that adverse weather during the autumn in the US and Scotland could cause a short-term fall in full-year expectations made the pages of the weekend FT. However, broker Arbuthnot Securities downplayed the warning noting that it’s a one off and should not affect next year, as “people believe in rock stocks”. The profit crunch has raised some concerns about the proposed acquisition of Johnston, following North Atlantic Value’s earlier moves to block the purchase. An EGM has been set for the 29 October, where shareholders will vote on acquisition. The shares are unchanged from Friday’s close at 35p.

According to Monday morning’s ‘Small Companies Notebook’ in the Independent, Oak Holdings (OAH) “seems to be making progress with its planned £250m leisure park development outside Rotherham”. The Company appears to have taken the first steps towards the construction of a 1.25m square foot entertainment and leisure complex in South Yorkshire, as three anchor tenants have been signed. These include Clear Channel Communications, which wants to build a 2,000-seat theatre complex to stage full-scale West End productions, along with a host of other events and Baydrive Group, which operates golf centres. This morning’s announcement (see link below) confirms the Independent’s report and gives details of the third anchor tenant. The shares are unchanged from Friday’s close at 1.75p.

Private investor Derek Pain in the Saturday Independent noted that reduced losses at Profile Media (PMD) provide hope “that it is at last on the recovery road”. He reviews the restructuring and adds that it “looks as though the medicine is starting to work”. Chairman John Webber is “moderately optimistic” and talked of contracted advertising revenue in the current six months being 34% than at the same time last year. All Mr Pain is hoping for now is that the “Webber team returns the Group to somewhere near its high-profile past.” The shares are unchanged from Friday’s close at 1.48p.

The weekend FT reported on full-year results at Protec (PRC), which saw profits rising to £107,000 from £12,000 on flat turnover of £40.3m. The systems arm contributed an operating profit of £342,000 compared with a loss of £492,000 last year, while progress on PFI opportunities had been slow and “disappointing”. The shares were up by 0.13p from Friday’s close to 8.50p.

Rumours picked up by Saturday’s Independent that Telephone Maintenance Group (TEL) was close to signing two major contracts in the UK were not enough to move the shares forward in trading last Friday. The shares are unchanged from Friday’s close at 3.50p.

RAB Capital increased its holding in Toledo Mining (TMC) by a further 50m shares taking its stake to 112m or 16%, noted Saturday’s Independent. The shares are unchanged from Friday’s close at 2.75p.

Warthog (WHOG) shares slipped in trading after recent gains on the back of profit-taking, according to Saturday’s Independent. The shares are up by 0.03p from Friday’s close reaching 1.23p.

Monday’s prices, quoted above, were taken around 10.55am on 18 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.

Euarasia Mining (EUA) – Issue of Equity.

Minco Plc (MIO) – Results of Feasibility Study.

Oak Holdings (OAH) – Update.

Look out for this week

Monday, 18 Oct – Nothing of note.

Tuesday, 19 Oct – UK RICS housing survey.

Wednesday, 20 Oct – UK MPC meeting minutes, UK Public finances (Sep), UK CML mortgages lending (Sep).

Thursday, 21 Oct – UK retail sales (Sep).

Friday, 22 Oct – Invox AGM.

The next Penny Share Review will be posted on Monday, 25 October 2004.

Compiled by Andrew McLintock

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