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Penny Share Review 295

18 July 2005

Press

An announcement on Friday from Cambridge Mineral Resources (CMR), detailing that its Lomero-Poyatos gold project is not economically viable, was held accountable for a decline in the share-price by Saturday’s Guardian. The article went on to say that consequently Cambridge has pulled out of its possible joint venture agreement with Greenwich Resources and Monday morning’s trading saw a further fall in the price of 0.25p to 3.88p.

Today’s Financial Times included a review of Karelian Diamonds, the spin off company of Conroy Diamonds (CDG), explaining that exploration activities near the Arctic Circle have indicated the existence of kimberlites, the diamond baring rocks. Fund raising is expected to continue development and the report suggested that admission to AIM is perhaps likely this month. Regardless of this news, Conroy Diamonds’ share-price remained unchanged this morning at 2.75p.

Delling (DLG) appeared in The Guardian on Saturday, which reported that the Company’s shares had enjoyed a rise in price after the suggestion of continued growth was made at the AGM by the Chairman, David Krucik. The shares remained unchanged at 21.00p during this morning’s session.

Commentary on recent developments at 1st Dental Labs (FDT) in The Daily Telegraph on Saturday noted that shareholders had something to smile about after the Company posted maiden profits last year and is in talks with various acquisition targets. Now, being the largest dental laboratory group in the country, the piece also hinted that a dividend could be on the cards and further gains were seen his morning as the shares added 2.00p at 38.00p.

Mano River Resources (MANA) received various press coverage over the weekend, which mostly drew the same conclusions. One such article, featured in The Guardian on Saturday, noted that the Company is expected to split into two, becoming a diamond business and a gold and iron ore concern. The diamond side may be of interest to Petra Diamonds, which the article mentioned might still be in an acquisitive mood and this view was mirrored in Today’s Independent and Saturday’s Daily Express amongst others. The market appeared to interpret this attention favourably, as the shares increased by 0.50p this morning to 10.38p and the speculation was confirmed in an announcement this morning (See below).

News that a lucrative deal had been secured for Scotty Group (SCO) with Agusta, the Italian helicopter manufacturer, was highlighted in Saturday’s Independent as the reason for a healthier share-price. However, the shares remained unchanged at 1.75p this morning and we can only hope that the newspaper is right about the size of the deal, but with it not being announced to the market we are slightly suspicious.

Virotec (VTI) appeared in the Daily Mail on Saturday in an article detailing that the go ahead has been given to clean up a leak of sulphuric acid into a trout-fishing river in Pennsylvania using Bauxsol. This initial trial could lead to the clean up operation of the entire area that might be valuable enough to push the company into profit. Mention was made of the alliance with the Al-Othman family and the piece suggested that broker Evolution reckon that sales could be £9.5m for the year. Following this media attention, the shares moved forward by 0.75p to 33.50p this morning. Monday morning prices were taken just after 10.00 am on 18 July 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.

Bede (BED): Notice of Results.

Computer Software Group (CSW): Directorate Change.

Eicom (EIC): Broadband Agreements.

Galleon Holdings (GON): Placing & Acquisition.

Gippsland (GIP): Environmental Impact Complete.

Mano River Resources (MANA): Corporate Reorganisation.

Mice Group (MEG): Director/PDMR Shareholding.

ReGen Therapeutics (RGT): Change of Advisor.

Look out for this week

Monday 18 July – US Net foreign security purchases (May).

Tuesday 19 July – UK RICS house price survey. Eurozone Industrial output (May).

Wednesday 20 July – UK Bank of England meeting minutes (June), Building Societies Association mortgage lending (June), British Bankers Associates mortgage lending (June).

Thursday 21 July – UK Retail sales (June). US Chicago Fed national activity index, Philadelphia Fed survey (July), Leading indicators (June) Jobless Claim (to w/e July 16).

Friday 22 July –UK GDP Q2. JP All-industry activity index (May).

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

Compiled by Chris Richards

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