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Penny Share Review 426

Monday 04 February 2008

African Eagle (AFE) appeared in Saturday’s Times in the ‘tiddler to watch’ section, noting upturn in the Company’s share price after the economic viability of its copper project in Mkushi was shown in a pre-feasibility study. The piece noted broker Seymour Pierce’s reiterated ‘buy’ advice and the momentum appeared to spill over into trading this morning, where the share price added 0.75p to reach 9.75p.

The Independent on Saturday featured Air Music & Media (AMU), as Seymour Pierce upgraded its view to ‘buy’, following a trading update on Friday. The weekend’s Financial Times mirrored this, noting that analyst at the broker, Amit Thakar, thinks the company has finally turned the corner after disposing of the non-core business. The piece quoted Air’s FD, Alex Sorrell, who suggested it was suprising how well the supermarkets have been doing, although this was countered by margin decline. Despite this press attention though, the share price drifted by 2.50p to 65.00p earlier today.

Encore Oil (EO) shares fell after losses due to higher exploration costs emerged, according to Saturday’s Independent. Nevertheless, Monday morning saw an increase of 0.50p, as the stock reached 45.75p.

Downturn in the shares of Financial Payment Systems (FPS) was noted by The Independent on Saturday, reporting the Company may look to cease activities in China if substantial progress is not made at a meeting with its local joint venture partner. The shares were up by 0.125p at 2.00p this morning.

The Independent on Saturday reported that shares in Mediwatch (MDW) had been depressed, as it emerged that takeover talks had ended. The weekend’s FT also proposed this view, but added that the Company suggested the door had been ‘left open’ by the buyer, in case market conditions improve. Further downturn followed during earlier trading today, where the shares dropped by 0.25p to 10.50p.

A reassuring trading update lifted Nexus Management (NXS), according to the Daily Express on Saturday, and the uprturn appeared to continue today, as 0.175p was added to the price, which reached 1.075p.

PLUS Markets (PMK) appeared in The Times today in an article regarding rivals to the LSE, which commented that PMK is the most established of these. It provided a review of the business and the shares increased by 0.25p to 17.25p following this media attention.

Today’s Telegraph pointed out that Subsea Resources (SUB) was the “latest company to get its wrists slapped”, as it was penalised for failing to point out changes to revenue forecasts and providing misleading information to the market, though the business was not fined by the LSE. The shares were down by 0.025p to 0.325p earlier.

Prices above were taken at 10:49 on Monday, 04 February 2008.

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.

Discovery Metals (DME): Director Declaration.

Lonrho (LONR): Lonrho Springs.

Mediwatch (MDW): Final Results.

Meridian Petroleum (MRP): Orion Sets Production Records.

Neutrahealth (NUT): Acquisition.

Proventec (PROV): Issue of Loan Notes.

Regenesis (RGN): Directorate Change.

Sareum Holdings (SAR): Notice of Results.

Stanelco (SEO): Holdings in Company.

TripleArc (TPA): Holdings in Company.

Univision Engineering (UVEL): Contract Win.

Look out for this week

Monday, 4 February – Final Results from Mediwatch. CBI/Experian Regional Trends Survey

Tuesday, 5 February – UK Services PMI (January).

Wednesday, 6 February – UK Nationwide Consumer Confidence (January).

Thursday, 7 February – UK Industrial Production (December) and Bank of England Interest Rate Decision.

Friday, 8 February – UK Q4 Mortgage Repossession Figures and GDP Estimate from National Institute of Economic and Social Research.

The next Penny Share Review will be posted on Monday, 11 February 2008.

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.