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Penny Share Review 305

26 September 2005

Press

The share price of Arc Risk Management (ARC.L) increased on the back of an Investors Chronicle tip, according to Saturday’s Independent . The magazine recommended a new portfolio of penny stocks, but Arc emerged as the main beneficiary. A further increase of 0.10p occurred this morning with the shares hitting 1.10p.

The Independent on Saturday noted an increase in the shares of Computer Software Group (CSW) and highlighted reports of good cross-selling opportunities within its acquired businesses. However, this momentum did not continue through Monday morning’s trading, as the shares dipped by 0.50p to 57.00p.

News that Deal Group Media (DGM) is to get less work from its largest client was held responsible for a slump in the share price by Saturday’s Independent. Monday morning brought more of the same, as the price slipped by 2.00p to 7.50p.

Desire Petroleum (DES) appeared in The Guardian on Saturday, which speculated that a decline, caused by news that a rig was proving hard to come by, might lead to a rival taking advantage and making an offer, while the weekends FT mirrored the problems with rig availability and mentioned that Hurricane Katrina had compounded the problem. A slight recovery was witnessed this morning however, as the shares increased by 0.75p to 34.00p.

GB Group (GBG) appeared in the Daily Mail on Saturday. The article speculated that the Company has an ‘unrivalled’ position in its market but is vulnerable to bid attention at current levels. The price remained at 38.25p this morning.

Coverage of the bid by Quadnetics, the security camera firm, for Protec (PRC) formed part of Saturday’s Daily Express and an increase of 0.13p was seen during Monday morning’s session as the shares reached 5.38p.

This weekend’s The Business included an article on Mavinwood (MVW), in which the Company and its acquisitions were reviewed. The piece commented that the sector is expanding, growing by more than 10% per year, and that Collins Stewart reckons that the combined businesses will make £4.1m before tax this year. To conclude, the shares were rated as a ‘buy’ due to the Company being ‘Stable and cheap’ but note was made that the real reason for buying the shares is the sector. Following this media attention the shares added 0.13p this morning, reaching 11.25p.

Today’s CITY A.M. included an upbeat article regarding Neutrahealth (NUT) and Michael Toxvaerd, that reflected on the Acquisition of BioCare favourably as a fast expanding business. It reported Toxvaerd’s intention to develop the business further through targeting products for the retail market and noted that probiotics was a ‘growth area.’ Regardless of this coverage, however, the shares remained at 15.75p.

Oil Quest Resources (OILQ.L) featured in Saturday’s Independent. The critique provided an overview of the Company and David Bramhill stating that its cash position, holding in Cambridge Minerals and promising sites in the south and North East of England made it one of the most promising players in a volatile industry. Further to this coverage, the shares enjoyed a forward movement of 1.50p to 17.75 during this morning’s session. Saturday’s Daily Telegraph reflected upon results released from Timestrip (TIME) reporting that the Company has started to receive interest from non-food companies and stands to benefit from new cosmetic labelling rules. The article also mentioned that research and development expenditure together with listing expenses has impacted the figures for the year. The weekend’s FT commented that the potential for the Company lays in licensing and drew particular attention to the recently announce Nestle deal. Nevertheless, there was no change to the share price during Monday morning, which remained at 6.63p.

Monday morning prices were taken near to 10.30am on 26 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.

Alltracel Pharmaceuticals (AP.L): Interim Results.

Chromogenex (CGX): Interim Results.

Chelford Group (CHR): New managed service contract.

Dragon Oil (DGO): Interim Results.

Entertainment Rights (ERT): Interim Results.

Minco (MIO): Drilling Report.

Media Square (MSQ): Acquisition and Suspension.

NWD Group (NWD.L): Thomas Graham Rule 8.3.

Ormonde Mining (ORM): Interim Results.

TripleArc (TPE.L): Trading Statement.

World Television (WTV): Interim Results and Board Change.

Zambezi Resources (ZRL): Surface trench results.

Look out for this week

Monday 26 September – Interim Results from Entertainment Rights, Alltracel, Chromogenex, Dragon Oil, Ormonde Mining and World TV.

Tuesday 27 September – UK Q2 Business Investment and BBA August Mortgage Lending Data.

Wednesday 28 September – Interim Results from Aerobox, Delling Group, Regal Petroleum, and Surgical Innovations. UK Q2 GDP final estimate.

Thursday 29 September – UK August consumer credit/mortgage lending.

Friday 30 September – Interim Results from Apace Media and TripleArc.

The next Penny Share Review will be posted on Monday 3 October 2005.

Compiled by Chris Richards.

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