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Penny Share Review 409

Monday 08 October 2007

The Sunday Telegraph reported that First Artist (FAN) is looking forward to its future as an entertainment marketing organisation, rather than a football agency. The article commented that entertainment marketing is what Hollywood is built on, but something that is underdeveloped in Europe and Britain. Brokers expect next numbers to show sales of £47.5m and £3m profits and it was suggested that the acquisition of a content generation business is likely. However, the piece noted the business will need to clarify its strategy and emphasise success in marketing through a set of numbers if it wants the City to provide necessary finance and it was suggested that spinning out football agency interests would show commitment to this new path. The share price was 1.00p lower at 99.00p on Monday morning.

The weekend’s Financial Times remarked that stockbroker WH Ireland is understood to have held talks regarding its possible purchase by Formation Group (FRM). The article noted that although these have been withdrawn from, they could be revived and the shares in both companies rose as a result. Apparently, analysts believe a deal could be positive for both parties, but no change was seen in the price of FRM this morning, remaining 23.25p.

The Saturday Daily Express included Mediasurface (MSR), and noted that the Board expressed confidence for the future, following a previous profits warning. It highlighted Chairman Michael Jackson’s decision to invest in the shares at 8p, though the price fell by 0.375p to reach 8.125p earlier today.

Nighthawk Energy (HAWK) appeared in Derek Pain’s “No Pain, No Gain” column in The Independent on Saturday, which suggested that recent results were not as depressing as they seem. The article commented that the business is progressing as planned and could be in profit in a year. Mr Pain remarked that he is not usually a fan of small exploration plays, but is not disheartened with this one and noted that there could soon be a ‘sales explosion’ as more gas becomes available. Broker Hanson Westhouse thinks the business is worth 75.9p per share, with “substantial upside potential”, and Growth Equities & Company Research suggests a sum-of-the-parts valuation of 96p per shares. Mr Pain has also come across estimates of over 100p and thinks the Company seems undervalued. Following this upbeat coverage, the share price was up 0.75p at 42.50p this morning.

PLUS Markets (PMK) received much press attention this weekend, regarding a deal with Project Turquoise, the alternative to the London Stock Exchange set up by various Investment Banks. The weekend’s FT and Saturday’s Daily Mail and Independent all provided coverage suggesting that the deal could be mutually beneficial, with PLUS gaining a greater sense of legitimacy and Turquoise gaining a listing, technology platform and CEO in the form of Simon Brickles. The shares are currently suspended.

Saturday’s Express reported an upturn in the share price of River Diamonds (RVD) on news of its fundraising. This positive momentum appeared to spill over into Monday morning’s trading, where the share price gained 0.025p to reach 2.25p.

Upbeat comments from Broker Evolution regarding Sound Oil (SOU) were responsible for an improved share price, according to the Daily Express on Saturday. No further change was seen during Monday morning’s session, where the price remained 3.50p.

The prices above were taken between 10.33am and 11.56am on Monday, 8 October 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): Appointment of COO for Peroka.

Black Rock Oil (BLR): Holdings in Company.

Eurasia Mining (EUA): Trading on PLUS Markets.

Global Marine Energy (GME): Notice of General Meeting.

ILX Group (ILX): Trading Update.

Mediasurface (MSR): Holdings in Company.

Mission Capital (MCAP): New KML Contract.

Pentagon Protection (PPR): Significant Contract Gain.

Persian Gold (PNG): Director Shareholding.

Plant Impact (PIM): Successful Field Trial Result.

Tanfield Group (TAN): Holdings in Company.

Look out for this week

Monday, 8 October – UK Industrial Production (August).

Tuesday, 9 October – UK August Trade Data.

Wednesday, 10 October – Nothing of note.

Thursday, 11 October – UK RICS House Price Survey (September) and BCC UK Economic Survey.

Friday, 12 October – Nothing of note.

The next Penny Share Review will be posted on Monday, 15 October 2007.

Compiled by Chris Richards.

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.