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Penny Share Review 266

20 December 2004

African Diamonds (AFD) “sparkled” after a positive update on its exploration sites in Botswana, Sierra Leone and Guinea, which was picked up by Saturday’s Daily Express. The shares were unchanged at 39p.

Caledon Resources’ (CDN) joint venture agreement paved the way, according to Saturday’s Daily Express, for drilling to start next month at its Yunnan gold prospects in China. The shares were down by 0.13p to 5.25p.

Saturday’s FT commented on the reduction of pre-tax losses at Eurovestech (EVT) as a result of the rising value of several companies in its portfolio. The shares were down by 0.13p to 12.25p.

Saturday’s Independent noted the “savage downgrade” by Hot Group’s (HOT.L) house broker Numis. The Group has been hit by an oversupply of teachers, which has made recruitment by schools easier than normal and the greater use of less qualified classroom assistants. Numis, on the back of this, cut its forecasts for Hot by 20% for the current year and the 33% for 2005. The shares were unchanged at 16.25p.

Saturday’s Daily Express reported on Namibian Resources (NBR) receiving the “green light” from the Namibian Government to use its new equipment for commercial production at its diamond project. The shares were up by 4.50p to 50p.

Saturday’s Daily Mail features Northern Petroleum (NOP) in what it considers to be an investment story “too entertaining to miss”. It noted, “if Northern gets its drilling rig on site – the same site vacated by British Gas – the shares could see some speculative action.” Broker Evolution recently put a 21p price target, but highlighted that with no earnings and minimal cash flow, conventional methods of valuation are not appropriate. Therefore, the shares, the Mail suggests, are “strictly for those who want to have a punt on the drilling”. The shares were up by 0.13p to 10.88p.

Pentagon Protection’s (PPR) final results get a brief mention in Saturday’s Independent, which also noted that the Company “boasted of a record order book”. The shares were unchanged at 7.95p.

Screen (SEN.L) “suffered…a hangover” from the heavily discounted fundraising, as the shares dropped by 29%, according to Saturday’s Daily Express. The shares were unchanged at 1.15p.

Starvest (SVE) is rated as a ‘Speculative Buy’ in Monday’s Business. It cautions that it “might be some time before the shares advance significantly”, but with “another five investments expected before July 2005, Bruce Rowan (who runs the investment vehicle) should deliver a further rise. There is a strong incentive for Rowan to perform – his annual salary is £24,000, so his real interest comes from his 23% stake.” The shares were up by 0.25p at 11.75p.

Pun of the day goes to Monday’s Independent, which begins its commentary with “Toad (TOA.L) is in a hole”. The existing business is a low growth area and it has been searching for more profitable and exciting opportunities and the paper previewed this morning’s announcement with regards the partnership with 21st Century Crime Prevention, which installs CCTV in buses. An option to buy the remaining 75% is in place, if 21st Century is able to widen the business from its current over-reliance on Arriva. News of the deal has moved the shares forward by 0.50p to 12p.

Stake-building at SRS Technology (SGY.L) was picked up by Saturday’s Independent, which reckoned that this is what had engendered the excitement in trading on Friday. The shares were unchanged at 4.88p.

Monday’s prices, quoted above, were taken around 10.30 am on 20 December 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.

Alltracel Pharmaceuticals (AP.L) – Acquisition and Suspension.

Bede (BED) – Q3 Results.

Billam (BLLM.L) – Investee Companies.

CybIT (CYH) – EGM statement.

Earthport (EPO) – Issue of Shares, Convertible & Statement re: Baltimore.

Europasia Education (EPE.L) – Proposed acquisition.

Mediwatch (MDW) – Comment on PSA Test.

MOS International – (MOI.L) – Marketing agency appointed.

Matrix Communications (MXC.L) – Heads of Agreement.

Netcall (NET) – Additional Listing.

Northern Petroleum – (NOP) – Italian Licences.

Planestation (PTG) – Posting of Circular.

Supercart (SC.L) – Contract.

Toad Group (TOA.L) - Strategic Partnership.

Look out for this week

Monday, 20 Dec – Bede Q3, CybIT EGM, Sibir Energy EGM.

Tuesday, 21 Dec – UK RICS housing market survey.

Wednesday, 22 Dec – Bank of England MPC meeting minutes.

Thursday, 23 Dec – Cytomyx EGM.

Friday, 24 Dec – UK market half day.

The next Penny Share Review will be posted on Tuesday, 4 January 2005.

Compiled by Andrew McLintock.

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