Shares have continued Friday’s sell off in early trading this morning as concerns about the US economy linger, but the Trader Dominic Picarda remains positive.
IC TIP UPDATES:
Sell recommendation Micheal Page International (MPI) confirmed that trading conditions remain challenging in its first half trading update today. Second quarter gross profits increased by 4 per cent sequentially against the first quarter of this year, but fell 2 per cent behind the second quarter of last year. Chief executive Steve Ingham is anticipating a ‘challenging’ third quarter.
Soco International (SIA) has brought a second oil platform into production at its Te Giac Trang field offshore Vietnam which will increase field production from 42,000 barrels of oil per day to 55,000. Nonetheless, we remain sellers.
Victoria Oil & Gas (VOG) has commenced continuous production of gas and condensate from its Logbaba field in Cameroon, becoming the first gas producer in the country to sell direct to industrial clients. We keep its shares as a buy.
KEY STORIES:
Shares in JJB Sports (JJB) have slumped after the company detailed worsening trading in recent weeks, with like for like sales down 8 per cent over the 22 weeks to 1 July after the Euro 2012 football tournament failed to encourage an improvement in sales. It also announced the departure of chairman Mick McTighe. He is going to be replaced by Robert Corliss
Emed Mining (EMED) has come to an agreement with the owners of land adjacent to its Rio Tinto copper mine which represents a significant step towards its plan to restart the mine. A joint venture is also being set up to exploit mine tailings on the land. Meanwhile, cornerstone investor and customer Yanggu Xiangguang Copper Company is subscribing for $5m worth of shares.
Like its peers in the housebuilding sector, Bovis Homes (BVS) has enjoyed a strong opening half of the year. The group sold 18 per cent more homes in the first half at prices 1 per cent ahead of the same period last year.
Electronics components maker XP Power (XPP) warned investors to expect a softer first half back in February and trading has indeed been below the levels of last year with revenues coming in 10 per cent behind in the first half. But orders have picked up recently and the second half of the year should show an improvement over the first half.
OTHER COMPANY NEWS:
MMGG Acquisition, the vehicle set up by Morson’s (MRN) founders to take the company private, has succeeded in winning enough acceptances to push their bid through despite a vocal group opposing their plans.
Daisy Group (DAY) has been chosen as one of 14 providers of communication services on the government’s Procurement Service's Public Services Network (PSN) Services Framework.
Aim welcomes a new cash shell today, Praetorian Resources (PRAE), which is looking to invest in the natural resources sector, was founded by New City Asset Management fund manager Richard Lockwood and former Ambrian Partners chairman Malcolm Burne.
