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Penny Share Review 390

Tuesday 29 May 2007

Saturday’s Daily Mail observed that financial information is ‘hot’, demonstrated by Thomson’s bid for Reuters and Informa’s offer for Datamonitor and questioned whether there was value to be had among the smaller players. Pointing out ADVFN (AFN), the article stated that the site has approaching 1m users and, according to Clem Chambers, expects to go cash flow positive soon. Although it noted that there are too many shares and progress is erratic, the piece concluded that the business could fetch a good price one day and the shares are worth holding. The price was unchanged at 3.00p this morning.

Ennstone (ENN) was highlighted by The Sunday Telegraph as having the potential to attract bid interest. The article remarked that the takeover of Hanson at 12.5 times EBITDA showed the value in the sector and that the Company, trading at about 8.5x EBITDA could become a target, concluding with a “BUY” recommendation. The shares advanced by 1.75p earlier today to 53.75p.

London Asia Capital (LDC) appeared in the Daily Telegraph on Saturday. The article said that Consensus, which houses many of Vincent Tchenguiz’s business interests, has been sounding out buyers for its 6% stake in LDC. Apparently, this was confirmed in an email from Robert Spriddell, as he stepped down as a non executive, though there is no suggestion that anyone acted improperly. However, the news could have something to do with the recent down turn in the share price, which remained unchanged at 10.25p earlier.

The Mail on Sunday included a review of NeutraHealth (NUT), commenting that profits are expected to hit £3m in 2007 and that the CEO hopes to increase turnover to £50m over the next few years. The article went on that in a sector that includes a lot of ‘Pseudo-science’, the Company boasts genuine scientists on its books, which could help distinguish its products as consumers become increasingly savvy about food and health. The piece concluded with a “BUY and HOLD” recommendation and the share price added 1.25p to reach 12.00p this morning following this positive attention.

Saturday’s Guardian noted the increased share price of Northern Petroleum (NOP), as Harbinger Capital raised its stake to 10.28%. The article reported rumours that Harbinger is buying more shares in the market and that some traders think it might be leading to a hostile bid. Furthermore, the Daily Mail on Saturday stated that analysts value the business at around 225p a share. Further forward movement came earlier today, when the share price added 6.00p to reach 177.50p.

The Independent on Saturday suggested that it may be better to watch the development of PLUS Markets (PMK) before piling in. The article noted that the Company hopes to benefit from the new Mifid directive, which is supposed to stimulate competition between exchanges. Despite this cautious advice, the shares added 2.00p to reach 31.75p this morning.

Toledo Mining (TMC) appeared in the “Deal of the Day” section of Saturday’s Times, which commented on non-executive Bob Cleary’s decision to halve his shareholding. The Company’s share price fell by 7.00p to 350.50p during this morning’s session.

World Television (WTV) appeared in today’s Telegraph. The paper reported that complaints have been lodged with the takeover panel by investors, following the Company’s decision to issue 900m new shares and de-list from AIM. The ‘action group’ opposing this consists of 80 investors, who hold a 5% stake, and claim that the de listing will leave thousands of shareholders ‘high and dry’. The share price remained unchanged at 0.145p during early trading today.

The prices above were taken between 10:0am and 11:40am on Tuesday, 29 May 2007.

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.

African Eagle (AFE): Mkushi Joint Venture.

Europa Oil and Gas (EOG): Drilling Report.

Formation Group (FRM): Issue of Equity, Acquisition and AIM Restoration.

Oxford BioMedica (OXB): ASCO Date.

Real Affinity (RAF): Directorate Change.

Red Rock Resources (RRR): Exercise of Option.

Scotty Group (SCO): Holdings in Company and Director Purchase of Shares.

Stanelco (SEO): Trading Statement.

Tarquin Resources (TQN): Final Results.

Tepnel Life Sciences (TED): Appointment by BIVDA.

Look out for this week

Tuesday, 29 May – Final Results from Tarquin Resources (TQN). UK BBA Mortgage Lending Data (April).

Wednesday, 30 May – Land Registry House Prices (April).

Thursday, 31 May – Final Results from Interactive Gaming Holdings (IGH). UK Mortgage Lending and Consumer Credit (April).

Friday, 1 June – UK Manufacturing PMI.

The next Penny Share Review will be posted on Monday, 4 June 2007.

Compiled by Chris Richards.

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