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Penny Share Review 269

17 January 2005

Press

Saturday’s The Guardian pointed out that things are not so rosy at Conder Environmental (CDE), which warned last week that widened losses at the half-year stage would mean a full year trading loss was unavoidable. The shares fell back on Friday, but were steady at 5.75p so far today.

The Takeover Panel has informed earthport (EPO) that it must, “put up or shut up” in relation to its proposed approach to acquire Baltimore Technologies, interestingly a potential defendant to earthport’s claims as plaintiff. Saturday’s The Guardian and The Times reported that the Panel has set a deadline for the end of the month for earthport to formalise its proposals. Traditionally a volatile stock, the shares were unmoved today at 1.3p.

Entertainment Rights (ERT) had a reiterated ‘Buy’ recommendation in Saturday’s The Daily Telegraph. The paper believes that ER has done the right thing with acquisitions and exploitation of existing and acquired portfolios and on a forward P/E of 10-times for 2005, the stock is considered “undervalued.” The Financial section of The Mail on Sunday also featured ER, but this time in relation to a broadcast deal with Nickelodeon for the Postman Pat series. The shares reacted favourably and were standing 2p higher at 17p this morning.

Shares in 1st Dental Laboratories (FDT) have made gains on the back of a newsletter tip, which has prompted “persistent buying from private clients”, reported Saturday’s editions of The Guardian and The Daily Telegraph. The stock continued its upward path, with at 1.25p rise to 38.75p.

The acquisition of Green and Dunne Ltd by children’s entertainment company Galleon Holdings (GON) – announced to the market today – was featured in The Independent (Monday). Galleon is undergoing considerable change under the stewardship of Jim Driscoll and he has brought in ex-Chorion ‘big guns’ Stephen Green and Len Dunne to run the Company as Chief Executive and Managing Director respectively. The shares have continued their recovery and were 0.25p better today, at 14.75p.

The Financial Mail on Sunday took a shine to Griffin Mining (GFM), ahead of its drilling update today (see below). Griffin should be able to start mining at Caijiaying in March and plant construction is going to plan, in addition to which the resource has improved thanks to further favourable exploration results (see below). Back on the move once more, Griffin stock has risen another 2.25p to 31p.

Saturday’s Daily Express picked up on the rise in the share price of Pentagon Protection (PPR), after City presentations highlighted the Group’s contract potential in the Middle East, with an office opened in Bahrain to serve the region. Another 0.13p has been added to Friday’s close and the shares now stand at 8p.

The Guardian (Saturday) mentioned a tick-up in the price of Pipex Communications (PXC.L), after it said that 2004 results would be in line with market expectations for £100m-plus revenues and a pre-tax, pre-exceptionals profit of £5.4m. Having digested the news over the weekend, buyers appeared this morning, pushing the stock up another 0.13p to 9.13p.

The sharp rise in the price of Protec (PRC) shares to 8p gained the attention of Saturday’s editions of The Independent, The Daily Telegraph and The Guardian, after the Company disclosed that it was potentially on the receiving end of a bid. Coming not long after a weak trading statement, the news was a welcome fillip for shareholders. The equity was unmoved this morning, however.

StarVest (SVE) received positive comment from The Financial Mail on Sunday, specifically “an upgrade in valuation”, due to the Company’s exposure to exploration and mining investments, some of which have done rather well this year. One of its higher profile investees is Southern African Resources (SFU.L), whose shares have had a particularly good year. Off their daily best, the shares were still 1.5p higher at 13.25p-mid.

Having tipped SubSea Resources (SUB) at 20.5p in November last year, The Financial Mail on Sunday advised readers to ‘Hold’, as “the shares’ speculative appeal is undiminished.” SubSea updated the market re its first target – codename Celia – last week, with the cargo lift expected to take place later this year, the paper suggesting September. The coverage stirred some buying today, which lifted them 1.25p to 20.5p.

The Times on Saturday featured Tom Farmer’s return to the market, alongside Michael Kingshott, after the reverse takeover of their KBC business by tecc-IS (TIS.L) to form Serviced Office Group plc. Sir Tom has little to prove as an entrepreneur, having established and built the Kwik Fit empire, which he sold to Ford for US$1bn. It looks like some profits are being taken, though, and the price was off 0.13p at 12p today.

Despite Altium Capital successfully placing a 7.7% holding in TripleArc (TPA) at 18.5p, the stock remained unmoved on Friday, noted The Times on Saturday. The shares were previously owned by Time Brettell, the founder of Access Plus, which merged with TripleArc in 2003. The news has stirred some interest now and the shares were standing 0.25p higher at 19.25p.

Monday’s prices, quoted above, were taken at 11:22 on 17 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.

Caplay (CLY) – AGM Statement.

Entertainment Rights (ERT) – Appointment of US-based DVD partner for He-Man and key Postman Pat deals.

Galleon Holdings (GON) – Preliminary Results for year to 30 September 2004; acquisition of Green and Dunne Ltd.

Griffin Mining (GFM) – Drilling results, mine progress and regional exploration update.

Mano River Resources (MANA) – Joint Venture with Trans Hex for Liberian kimberlite pipes.

Sibir Energy (SBE) – Holding in Company.

tecc-IS (TIS.L) – Additional Listing following the exercise of share options.

Telephone Maintenance Group (TEL) – Preliminary Results for the year to 31 July 2004.

Look out for this week

Monday, 17 Jan – Galleon Holdings (GON), Telephone Maintenance (TEL) Preliminary Results. Eurozone meeting of finance ministers; US market closed for Martin Luther King Day.

Tuesday, 18 Jan – UK Consumer Price Indices (Dec), RICS house price survey (Dec); Eurozone industrial production (Nov).

Wednesday, 19 Jan – UK unemployment rate (Dec), average earnings (Nov); US Jobless claims (w/e Jan 15th), housing starts (Dec).

Thursday, 20 Jan –British Chamber of Commerce economic survey (Q4); US leading indicators (Dec).

Friday, 21 Jan – UK PSNCR (Dec), retail sales (Dec), M4 (Dec), M4 lending (Dec), CML/BBA/BSA mortgage lending (Dec); US consumer sentiment (Jan).

The next Penny Share Review will be posted on Monday, 25 January 2005.

Compiled by Andrew Thacker.

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