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Penny Share Review 262

22 November 2004

Accident Exchange’s (ACE) interim results are due to be published on Thursday and the Guardian from Saturday picked up on rumours that they are set to “impress”. The shares are up 9.00p this morning to 197.50p.

A drilling update from African Eagle (AFE) was reported in the weekend’s FT, which noted that the shares jumped nearly 40% after it announced that tests in Zambia had revealed evidence of bigger-than-expected copper-containing rocks. The shares were up 1.50p to 20p in trading this morning.

Edmond Jacskon of The Sunday Telegraph noted that if any of the economic problems such as the US deficits and the falling dollar or “financial mayhem” in Britain turn nastier in 2005 then the obvious hedge is gold, which is why, he reckons, prices have been rising. In turn this has a boost for producers like Oxus Gold (OXS), and the company offers “promising production, with exploration upside too.” The shares have failed to respond to Mr Jackson’s prompting, as they are off by 0.25p in trading.

The Sunday Telegraph’s ‘Small Cap Comment’ has an update on Southern African Resources (SFU.L) in which it recommends to Sell. The smart money, including certain Directors has either partially or totally sold their holding and this makes the newspaper feel “uneasy” even though it remains “impressed with the potential to develop the company’s prospective properties in South Africa and Bostwana”. The shares are off by 0.25p in trading this morning following the Telegraph’s recommendation.

Broker Evolution Beeson Gregory recommends to ‘Buy’ Stanelco (SEO) shares at 4.75p, which got mentioned in Saturday’s Daily Mail. The shares continued their positive trend this morning and were up by another 0.38p.

Saturday’s Daily Mail wondered what had been happening at Virotec (VTI) given that the shares have drifted, apparently hit by an absence of news and a bumper package of options for tops executives. News on HydroDec, its product that cleans polluted oil, is encouraging however, as tests suggest that cleaned-up lubricants can be reused up to five-times. According to the paper BP Castrol is taking a look at the process. Virotec is targeting the product, which was bought by Vert-Eco, at 60 companies, with the hope being that a deal with a US consumer giant to treat its waste-water can be landed. “That would be significant ”commented the paper, however, “the key issue…is to convert its promise into firm orders. The signs are good, but it needs to deliver.” A gain of 0.50p in trading this morning moved the shares forward to 20.50p.

Monday’s prices, quoted above, were taken around 10.45am on 22 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.

Albidon (ALD) – New Zone of Platinum Group Metal in Zambia.

Bede (BED) – New chairman.

CybIT (CYH) – Interim results are out on 2 December 2004.

Hereward Ventures (HEV.L) – Acquisition of a 10% interest in UK Onshore Hydracarbon Exploration Licence.

Northern Petroleum (NOP) – Farm-out Agreement with Hereward Ventures.

Sareum Holdings (SAR) – Collaboration with Millennium Pharmaceuticals.

Look out for this week

Monday, 22 Nov – Cardpoint (F).

Tuesday, 23 Nov – Nothing of note.

Wednesday, 24 Nov – Gladstone (F).

Thursday, 25 Nov – Accident Exchange (I).

Friday, 26 Nov – Ten Alps (I).

The next Penny Share Review will be posted on Monday, 29 November 2004.

Compiled by Andrew McLintock

Penny Shares Online - penny shares research and information service.




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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.

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