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Penny Share Review 399

Monday 30 July 2007

The ‘Market Report’ section of the Daily Mail from Saturday noted that the shares in Encore Oil (EO.L) held steady following an upbeat drilling report on its Celtic Sea prospect. The shares again held steady today, unchanged at 18.25p.

London Asia Capital (LDC) gained a small mention in today’s Independent in an article about the poor performance of London traded Chinese stocks in last week’s market sell-off and the planned IPO of Asia MedicalGlass this week. LDC ticked 0.125p lower this morning to 7.625p.

Nighthawk Energy (HAWK) was mentioned in the ‘Deal of the Day’ column in Saturday’s Times, following the purchase by four directors of a total of 225,000 shares at between 45.5p and 46.5p. The shares in this energy play dropped 0.5p to 46.5p on Monday.

Nick Louth, writing in the Weekend Financial Times raises the question of how long to run a winner in relation to his Tanfield (TAN) portfolio holding. The long article recaps on the reasons for the shares’ spectacular rise over the last year. Nick believes the p/e rating of 52.6 on forecast earnings for 2007 and 31.2 for 2008, takes a lot for granted, for what is essentially a cyclical firm. He concluded by revealing he has top-sliced his holding, but still believes the Group could become a world leader in green technology. A more negative stance was highlighted by the Daily Mail on Saturday, which noted the publication of a ‘Sell’ note for Tanfield at 182p by broker Killick on the basis that the shares are ahead of themselves. On Monday morning the shares traded 3.75p lower at 169.25p.

The Independent’s recommendation on Vyke Communications (VYK.L) from last week was highlighted in the weekly review section on Saturday. For punters with an appetite for high risk it could be worth a punt, the paper concludes, due to the Company being in the relatively early phase of its development. The shares were quoted unchanged on the day at 76.5p middle on Monday.

The Daily Mail from Saturday briefly highlighted a ‘Buy’ recommendation for Western & Oriental (WEST) from broker Collins Stewart at 11p, who believe positive share price momentum will be generated from further deal flow. Despite some of this deal flow being announced today in the form of an acquisition, the stock remained unchanged at 10.5p.

The prices above were taken between 10.49am and 11.19am on Monday, 30 July 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.

AIM Resources (AIMR) – Adviser changes.

Amphion Innov (AMP) – Investment update.

Beowulf (BEM) – Fund raising.

Delling (DLG) – Acquisition.

Eruma (ERU) – Fund raising & board appointments.

First Artist (FAN) – Trading statement

Greatland Gold (GGP) - Fund raising.

Hill Station (HLL) – Financing and trading statement.

Infonic (prev. Corpora) (IFNC) – Trading statement.

Minco (MIO) – Fund raising.

Northern Petroleum (NOP) – Transfer of licences.

Sareum (SAR) – Licence agreement.

SmartFOCUS (STF) – Cendris announcement.

Stratex International (STI) – Interim results.

Surgical Innovations (SUN) - Distribution agreement.

Water Hall (WTH) – Premier EGM.

Western & Oriental (WEST) – Acquisition

Look out for this week

Monday, 30 July – Stratex International (STI) interim results , UK consumer credit, mortgage lending and M4 lending.

Tuesday, 31 July – Caledon Resources (CDN) AGM, July consumer confidence survey.

Wednesday, 1 August – Bede (BED) interim results, UK July manufacturing PMI.

Thursday, 2 August – BoE rate decision.

Friday, 3 August – Origo Sino-India (OSI) AGM, England, Wales Q2 insolvencies, UK CML H1 home arrears, repossessions.

The next Penny Share Review will be posted on Monday, 6 August 2007.

Compiled by Jason Robertson

Penny Shares Online - penny shares research and information service.




Risk Warning

There is an extra risk of losing money when shares are bought in some smaller companies including 'Penny Shares'. There is a big difference between the buying price and the selling price of these shares. If they have to be sold immediately, you may get back much less than you paid for them or you may have difficulty in selling them. Past performance is not a reliable indicator of future results. The price may change quickly and it may go down as well as up. You could lose every penny put into a particular share.

The information contained above has been compiled from documented sources which are believed to be reliable but, due to their very nature, are subject to a degree of historical inaccuracy and have not been independently verified and cannot be guaranteed. The pages on this website are provided for information only. City Equities Limited will not accept responsibility for loss incurred by any person or body acting, or refraining from acting, as a result of information and/or opinions given anywhere on this website. Issued by City Equities Limited, Aldermary House, 10-15 Queen Street, London, EC4N 1TY. Registered in England. Registered No. 2742847. Registered Address: Amwell House, 19 Amwell Street, Hoddeson, Herts. EN11 8TS. City Equities Limited is Authorised and regulated by the Financial Services Authority. Registration No. 155051.