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Penny Share Review 342

19 June 2006

Saturday’s edition of The Times included small updates on both Caledon Resources (CDN) and Cambridge Mineral Resources (CMR). Rumours surrounding the former are particularly exciting, with word of “a transformational acquisition” to be announced this week. Talk is that £50m-worth of mining assets will be injected into CDN, which will take it into production territory. The shares have reacted accordingly, and were up 0.5p to 6p-mid in early trade. Meanwhile, at CMR, Chairman Michael Thomsen’s resignation was said to have been due to pressure from institutional investors (principally RAB Capital), who were disaffected by the poor share price performance and the fact that Mr Thomsen never opened his wallet to invest in the Company, amongst other gripes. His departure also coincided with new institutional investment to the tune of £1m, so his exit looked conditional. The shares were unchanged at 3.75p this morning.

In his No Pain No Gain column of Saturday’s The Independent, Derek Pain wrote at length about Constellation Corporation (CST) and its proposed 50-for-1 share consolidation and name change to Garner plc. Rather than giving specific investment advice, the article was more of a lament for holders of less than 5,000 shares, who will be removed from the register owing to the mechanics used and cannot be part of the upturn in fortunes, as suggested in the results statement released along with these proposals. Suffice it to say, Constellation has been a very poor performer and the consolidation proposals may test the patience of those shareholders not removed in this round. The stock has remained at 0.05p-0.07p so far today.

‘The Week In Review’ section of the same newspaper featured Northern Petroleum (NOP) as a ‘Buy’, on the back of positive reserve estimates on the Weald Basin licence. Despite the tip and the fact that the results were announced today (see below), the shares were off 1.5p at 126p at the time of writing.

The prices given above were taken at 09:54 and 09:56 on 19 June 2006.

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.

Electric Word ELE.L): Pre-close trading statement

Gippsland (GIP): Drilling results.

IDN Telecom (IDN): Interim Results.

IDOX: Interim Results.

Northern Petroleum (NOP): Final Results.

Tanfield Group (TAN): Contract win.

Smart Telecom (SMR): Directors’ Dealing.

Look out for this week

Monday 19 June –Interim Results from IDN Telecom and IDOX, Final Results from Northern Petroleum and Petards.

Tuesday 20 June – UK PSNCR (May), mortgage lending from BBA, CML and BSA.

Wednesday 21 June – Interims from Millbrook Scientific, UK BoE June meeting minutes.

Thursday 22 June – nothing of note.

Friday 23 June – nothing of note.

The next Penny Share Review will be posted on Monday, 26 June 2006.

Compiled by Andy McLintock/Andy Thacker.

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