Penny Share Review:

• Issue 474 : 05 Jan 2009
• Issue 473 : 29 Dec 2008
• Issue 472 : 22 Dec 2008
• Issue 471 : 15 Dec 2008
• Issue 470 : 08 Dec 2008
• Issue 469 : 01 Dec 2008
• Issue 468 : 24 Nov 2008
• Issue 467 : 17 Nov 2008
• Issue 466 : 10 Nov 2008
• Issue 465 : 03 Nov 2008
• 2009 Archive
• 2008 Archive
• 2007 Archive
• 2006 Archive
• 2005 Archive
• 2004 Archive
• 2003 Archive
• 2002 Archive

Penny Share Review 303

12 September 2005

Press

Saturday’s Daily Mail explained that Caledon Resources (CDN) has “made a packet” on its 17% stake in Afcan Holdings, following their merger with Eldorado Gold. The paper incorrectly stated that Caledon’s stake is valued at £16m, post merger. The Company today confirmed its stake is worth C$16m (£7.4m) and not the £16m quoted in the Daily Mail, but nevertheless that this represents a 170% increase on its original investment made just 10 months ago. The shares nudged higher by 0.38p on Monday to 3.75p.

The Business profiled Electric Word (ELE) and repeated its previous buy advice, as the earnings multiple of 20 does not “reflect quality of operations or even prospects.” The newspaper believes the stock is undervalued, given its renewable revenue generation from advanced subscriptions, strong cash flow and cash positive position with £900,000 in the bank. The stock ticked up by 0.25p to trade at 8.25p this morning.

The Independent on Saturday briefly reported on the 45% rise in the shares of Goldstone Resources (GRL) in response to news of a deal with mining giant BHP Billiton. The shares traded unchanged at 7.25p on Monday.

Following the securing of an important contract in Iraq by Petrel Resources (PET), the Weekend edition of the Financial Times included a quote from Managing Director David Horgan, “It’s a good time to have our foot in the door”. After the sharp rise in the share price last week, some profit taking seems to have set in, with the stock at 76.5p, representing a drop of 4p on the day.

Several newspapers over the weekend briefly noted the 12.5p fall in the shares of Northern Petroleum (NOP) on Friday following news of the Sandhills-2 well on the Isle of Wight being uncommercial. The Daily Mail on Saturday concluded, “Another jam tomorrow exploration stock … bites the dust”. The shares fell another 4p this morning to 57p.

In response to the same news, Oil Quest Resources (OILQ.L), which has a 7.5% stake in Sandhills 2, dropped 2p on Friday, the Times from Saturday noted. In the same direction as Northern, the shares in Oil Quest fell by 1.5p to 12.50p.

Monday morning prices were taken at quarter past ten on the morning of 12 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.

Air Music Media (AMU) – Appointment of PR advisor.

Caledon Resources (CDN) – Eldorado/Afcan agreement.

ILX Group (ILX.L - former Intellexis/Time2Learn) – Skills training contract.

Noble Investments (NBL) – Directorate change.

Provexis (PXS) – Collaboration agreements.

Stanelco (SEO) – Development of Capsule.

Look out for this week

Monday 12 September – nothing of note.

Tuesday 13 September – UK Consumer Price Index.

Wednesday 14 September – UK labour market report.

Thursday 15 September – UK August retail sales.

Friday 16 September – nothing of note.

The next Penny Share Review will be posted on Monday 19 September 2005.

Compiled by Jason Robertson

Penny Shares Online - penny shares research and information service.