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Penny Share Review 267

05 January 2005

The Daily Express on Tuesday tipped Air Music & Media (AMU) as one of its ten selections for the year and is encouraged by the synergy gains that could be made, following the acquisition of Music Box Leisure. The paper points out that further deals will need to be made to boost investor confidence, one of which could include a tie up with a US or European wholesaler. The shares ticked higher by 0.25p on Tuesday.

The Sunday Mail tipped Bede (BED) as one of its six picks for the year, following the recent upbeat trading update. Demand for the Company’s chip testing technology may increase with chips becoming smaller and faster. “The shares have exciting potential” the paper concluded, with the Group expected to move into profit soon. The stock advanced by 2.00p to 40.00p on Tuesday.

An announcement about the start of drilling from Cooper 1 in Australia by Black Rock Oil & Gas (BLR) gained a small mention in the Independent on Saturday, following the sharp rise in the share price on Friday. However in response to disappointing drilling news from Australia on Tuesday, the shares dropped 0.84p to 1.95p.

Shares in Claims People (CLM.L) fell last Friday on profit taking, following news that Goldman Sachs had taken a stake, the Independent on Saturday noted. Shares in Claims People slipped again by 0.25p to 3.25p today.

Comments by Earthport (EPO) that it is moving closer to being cash flow positive, according to the results statement, was reported by the Independent on Saturday. Earthport’s shares edged lower by 0.15p to 1.45p on Tuesday.

The Daily Express on Saturday briefly noted that the reporting of increased losses of £0.9m at Energy Technique (ETQ) sent the shares lower on Friday. On Tuesday the stock fell back 0.25p to 2.75p.

Ennstone (ENN) was ‘tipped’ for the year by the Mail on Sunday, but by using the random method of stabbing a pen in the share price pages. The paper explained that the pick might prove to be an inspired choice, as the Company is in the process of integrating Johnston Group into the fold. Ennstone’s shares moved higher by 0.5p to 37.25p.

A third penny share chosen by the Mail on Sunday in its recommendations for 2005, was Entertainment Rights (ERT), which is expected to have another eventful year. The stock looks cheap on a forward p/e of just nine and the house broker Collins Stewart forecasts that profits will increase four fold to £6.5m in 2005. News of the tip sent the shares higher by 1.25p to 15.25p on Tuesday.

GB Group (GBG) was one of eights stocks picked by the Saturday Daily Mail’s experts, in their tips for the year. The paper believes that major retailers could soon be knocking at the door of the Group, now that they are responsible for fraud that could have been prevented using the new chip and pin technology. If new customers are gained the shares look distinctly cheap, the paper concluded. The shares gained 2.5p on Tuesday to trade at 27.75p.

Tuesday’s Guardian picked London Asia Capital (LDC) as one of its ten recommendations for 2005. The share offers British investors a rare opportunity of becoming entangled with the Asian tiger of China. The paper recapped on events to date and the prospects for 2005, which include the possibility of China Financial Services joining the market in the first quarter of the year. The shares are “well worth a punt” the Guardian wrapped up. LDC moved higher by 1.00p to 15.50p on Tuesday.

The Express and Mail on Saturday reported on the appointment of fund manager Stephen Hazell-Smith as Chairman to Plus Markets Group (PMK). The new CEO Simon Brickles believes his standing in the smaller company investment community would be a key asset. The stock traded unchanged at 6.13p on Tuesday.

The announcement of results from MOS International (MOI.L) gained a mention in the Express and Mail on Saturday. The Express explained about the increase in losses to almost £1m, but of record order book levels. Shares in MOS stood at 0.78p on Tuesday.

The Times on Monday explained about how diamond explorers are stepping up their global hunt for new diamond sources, following the rapid increase in prices. The newspaper listed most of the AIM listed diamond explorers, including African Diamonds (AFD), River Diamonds (RVD.L), Namibian Resources (NBR) and Tertiary Minerals (TYM). River Diamonds also received a mention in the Express and Mail from Saturday, after the shares rose the previous day in anticipation of further price rises for rough diamonds in 2005. AFD shares moved higher by 3.50p to 55.50p, NBR traded 0.25p lower at 49.25p, while RVD and TYM stood unchanged at 3.25p and 9.00p respectively on Tuesday.

The Independent on Saturday noted that the results announcement from Ovoca Resources (OVG) contained no news to back up rumours that several mining heavy hitters were poised to join the Board. Ovoca traded at 7.65p on Tuesday.

Shares in Petrel Resources (PET) dropped on Friday, the Independent on Saturday reported, with investors becoming impatient that it has not updated the market about the future of its operations in Iraq. Petrel shares rebounded by 4p to 52.00p on Tuesday.

At Real Affinity (RAF), Director share buying of 1m shares at 0.825p gained a brief mention in Saturday’s Independent. On Tuesday RAF ticked higher by 0.15p to 0.98p.

The ‘Share Whisper’ column of Saturday’s Daily Express explained about the high volume of shares traded in SectorGuard (SGD), which they believe was due to traders gambling on a positive annual results statement. The Independent from the same day also noted that ‘traders’ expect another year of significant acquisitions. Shares in SectorGuard gained 0.38p to trade at 4.25p on Tuesday.

Monday’s prices, quoted above, were taken just after 12.30 on 4 January 2005.

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.

Black Rock Oil & Gas (BLR) – Drilling report.

Corpora (CP.L) – Placing statement.

Earthport (EPO) – AGM statement.

Europasia Education – Options issue.

London Asia Capital (LDC) – Director holding.

Totally (TLY) – New broker.

TripleArc (TPA) – Acquisition and trading update.

Look out for this week

Tuesday, 4 Jan – UK consumer credit and mortgage lending.

Wednesday, 5 Jan – UK CIPS construction PMI and CBI distributive trades survey.

Thursday, 6 Jan – CIPS services PMI.

Friday, 7 Jan – nothing of note.

The next Penny Share Review will be posted on Monday, 10 January 2005.

Compiled by Jason Robertson.

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