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Penny Share Review 363

Monday 13 November 2006

The Independent on Saturday suggested watchers of Oxford BioMedica (OXB) will be on the look out for news over the weekend, as one of its scientists, speaking in Athens, was due to give an update on Prosavin. It shouldn’t surprise us then, that the Company this morning revealed an update on … err, Prosavin (see below). The shares were ahead by 0.25p at 31.5p in trading this morning.

In a piece in Monday’s Times on AIM boardroom pay Red Rock (RRR) and Regency Mines (RGM) had the lowest and second lowest Chief Executive salaries on the junior exchange. Both stocks were unchanged this morning trading at 2p and 1.63p respectively.

Increased oil and gas exploration activity has boosted some of the larger UK oil services companies and against this context Saturday’s Daily Mail suggested Rheochem (RHEP) is worth a look. The article reviewed last week’s results and noted, “If earning’s grow 30% this year, which looks attainable that would put the shares at just ten times – a steep discount to rivals.” Added to which there is the potential upside from exploration activity in the North Sea, which could produce oil in 2008. Clouds on the horizon are the potential dilution from Ocean Resources Capital’s decision to wind itself up, the conversion of loan notes and exercise of warrants, which limits earnings growth. However, MD Haydn Gardner commented, “In 18 years in the industry, I’ve never seen so much activity.” The article advises to bear the risks in mind and set a stop-loss at 10p, but “for those who do not mind a punt, it looks cheap.” The stock was ahead by 2p at 15.25p this morning.

The travails of Subsea Resources (SUB) were featured in Saturday’s Daily Mail, following the suspension of the shares and its need to raise £4.5m of new funds to continue operating. So far, according to the Mail, it has recovered 550 tons of the 6,100 tons of copper bars available on its first wreck, worth around £2m, but this has cost £11m. Now that it has proved the technology works it plans to recover cargoes worth £50m next year at a cost of £15m if it can raise the new cash. The article, concludes, “Subsea can survive, but may need to issue shares cheaply. The risks have risen, the remain elusive, deep on the ocean floor.” The shares remain suspended.

The price given above was taken around 10.30 am on 13 November 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.

Amphion Innovations (AMP): Acquisition.

Arc Risk Management (ARC): Contract win.

EMED Mining (EMED): Kefi update.

Gippsland Ltd (GIP): Termination of IFC Mandate.

Oxford BioMedica (OXB): Prosavin preclinical data.

Playwize (PLW): Product launch/marketing.

Proventec (PROV): Notice of results.

Tepnel Life Sciences (TED): R&D shareholder meeting.

Look out for this week

Monday 13 November – UK producer price inflation (Oct).

Tuesday 14 November – UK inflation (Oct).

Wednesday 15 November – ADVFN (F), UK unemployment (Oct), UK average earnings (Sep), UK quarterly inflation report (Nov), UK state opening of Parliament and Queens Speech.

Thursday 16 November –UK RICS house prices, UK retail sales (Oct).

Friday 17 November – Nothing of note.

The next Penny Share Review will be posted on Monday, 20 November 2006. Compiled by Andrew McLintock.

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