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Penny Share Review 261

15 November 2004

The Daily Mail from Saturday reported on the fund raising at Aerobox (ARX), which added £4.8m to the coffers through a Placing at 14p. The stock retreated 0.25p to 14.50p on Monday morning.

The sharp rise in the share price of Desire Petroleum (DES) over the last week was noted by several newspapers over the weekend, including the Financial Times, which featured the company in its ‘Stars and Dogs’ column. The stocks 119% gain on the week was due to news of positive seismic survey data from its licences north of the Falkland Islands. Analysts however cautioned that seismic prospects were some way from pumping crude. Shares in the oil explorer fell back 5.25p on Monday to 56.25p.

The Business profiled Formation Group (FRM) in a ‘Buy’ recommendation. The paper explained that its move into the black in the year to August 2004 was mainly due to the contribution made from Kingsbridge Asset Management rather than the higher profile news of the large fees earnt from the signing of Manchester United’s new star, Wayne Rooney. The article concluded with the opinion that the management appear to “have assembled businesses designed to take advantage of the demand for football talent and the interest in football from corporate sponsors.” The stock gained 1p on Monday morning to 7.75p to 170p.

Just ahead of today’s announcement, the Independent on Monday reported on Matrix Communication’s (MXC.L) latest acquisition, being Network Partners. The re-seller of BT services has been snapped up for £12m. Matrix’s shares rose by 7.5p on Monday.

Peter Temple, writing in the Weekend Financial Times explained why he had topped up on his holding of Planestation (PTG). The Company is an “asset-rich turnaround opportunity” he noted, with its main asset of Manston airport in Kent. He believes the recent share consolidation has led to a pronounced softness in the share price, but that this is will only have a temporary impact upon the share price. The stock moved up by 7.5p to 55p on Monday.

The Mail on Sunday tipped Subsea Resources (SUB) as a ‘Speculative Buy’ in a half page feature. With £10m raised in the AIM Admission Placing and the “wind of high metals prices to help it along”, it is “set fair for the foreseeable future”. The placing is reported to have been “comfortably oversubscribed”. The paper however noted that profits are probably two years away. Shares in the Company ticked up 0.75p on Monday to 21.25p.

The Express on Saturday briefly noted that the shares in Ten Alps Communication (TAL) rose the previous day in response to an announcement of new contract details. Shares in the media Group moved 0.5p higher to 45p on Monday.

Monday’s prices, quoted above, were taken just before 11am on 15 November 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.

Matrix Comms (MXC.L) – Acquisitions.

Oxus Gold (OXS) – Directorate change & expansion plans.

Look out for this week

Monday, 15 Nov – Nothing of note.

Tuesday, 16 Nov – Nothing of note.

Wednesday, 17 Nov – UK Average earnings and Unemployment figures. BoE MPC meeting minutes.

Thursday, 18 Nov - UK Retail sales.

Friday, 19 Nov – Nothing of note.

The next Penny Share Review will be posted on Monday, 22 November 2004.

Compiled by Jason Robertson

Penny Shares Online - penny shares research and information service.