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Penny Share Review 302

05 September 2005

Press

Chelford Group (CHR) featured in Saturday’s Daily Mail ‘Broker Buy’ column. The broker in question was Charles Stanley who recommended to ‘Buy’ at 241p, on the back of significant organic and acquisitive growth opportunities. The twelve-month price target is 400p. The stock was ahead by 1.50p in trading this morning to reach 263.50p, well ahead of Charles Stanley’s recommendation.

Entertainment Rights (ERT) is featured in a half-page article in The Mail on Sunday about why today’s children prefer characters from the past. ERT is in the throes of agreeing a deal with Express Newspapers to rejuvenate Rupert Bear, which will see Rupert re-packaged for a new generation. The return to the TV screens of Muffin the Mule is also featured, although the credit for this is given to the BBC rather than to the new shows creator Maverick Entertainment (MVK). ERT’s share price has moved forward by 0.25p this morning reaching 28.75p, while Maverick’s share price remains unchanged at 0.40p.

The battle for online recruitment company Hotgroup (HOT.L) appears to be hotting up following DC Thomson’s recent stake building, Sunday’s Daily Express wrote. DC Thomson, the publisher of the Beano, bought 500,000 shares on Friday at 20p and apparently made contact with HOT’s chairman three weeks ago expressing an interest in buying the Company. However, as the paper understands no more discussions have taken place. In the meantime, Trinity Mirror announced that it was prepared to buy Hotgroup for £50.5m in cash. It is thought that DC Thomson would have to better Trinity’s bid by about 10%, which City sources reckon is unlikely, added to which the latter has received the support of institutional investors who hold more than 20% of HOT’s stock. The shares were up 0.75p to 21.00p in trading this morning.

The success of trials of Scotty Group’s (SCO) satellite communications equipment with Eurocopter Deutschland was picked up by Saturday’s Express, with the paper claiming that traders believe more contracts are on the way. The shares were unchanged at 2.15p on Monday morning.

Nigel Wray’s rumoured investment in Virotec International (VTI) was enough to send the shares forward in trading in Friday, according to Saturday’s Daily Telegraph. The same day’s Daily Express suggested that it was about to announce a deal with a major UK water company. The stock continued its move north this morning and was ahead by 1.25p to reach 42.75p.

Monday’s Daily Express revealed that Zambezi Resources (ZRL) was planning to spin off its nickel production business and likely to float it on AIM. It is expected to raise £1m through a Placing and Open Offer to existing ZRL shareholders, giving Zambezi Nickel, the new business, a valuation of around £5m. The money raised will be used to explore for nickel in Zambia and is earmarked to take place in October. Suitable deposits for drilling will be targeted, with joint venture partnerships being entered into, if the drilling programme is successful. The move means that Zambezi Resources will be focused on its core copper and gold interests. The shares were unchanged at 16.00p on Monday morning.

According to The Mail on Sunday, Zi Medical (ZIM.L) will try to woo the major shareholder in NMT (NMT) ahead of a formal share offer for the business. Discussions with Jonathan Lander, a director of investment Company Volvere, which has a 26% stake in NMT are to be held. The article suggested that if this proves successful, ZIM will turn its attention to NMT’s second key shareholder, investment group Bluehone. Zi Medical’s shares were unchanged at 8.13p, while NMT’s were similarly unmoved at 72.50p.

Monday morning prices were taken after 10.00am on 5 September 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.

BioProjects International (BIP): Trading Update.

Black Rock Oil & Gas (BLR): Change of Adviser.

Chelford Group (CHR): Notice of results.

Eicom (EIC): TV channels launched in India.

Griffin Mining (GFM): Interim Results.

Multi Group (MLT): Appointment of Adviser.

Oxford BioMedica (OXB): Notice of Results.

Stanelco (SEO): Completion.

Tepnel Life Sciences (TED): Offer Talks Terminated/Licence Agreement.

Zi Medical (ZIM.L): AGM Statement.

Look out for this week

Monday 5 September – Griffin Mining (I).

Tuesday 6 September – Deal Group Media (I), UK BRC retail sales monitor.

Wednesday 7 September – nothing of note.

Thursday 8 September – Pipex (I), UK BoE interest rate decision.

Friday 9 September – nothing of note.

The next Penny Share Review will be posted on Monday 12 September 2005.

Compiled by Andrew McLintock.

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