Markets have begun to pick up a little after an early summer lull in recent trading sessions, but The Trader Dominic Picarda is steering clear until a more concerted uptrend takes hold.
IC TIP UPDATES:
Simon Thompson tip Eros International (EROS) has reported that its latest Bollywood film release, Cocktail, has grossed $12m over its opening weekend.
The recent wet weather has hit insurance group RSA (RSA). June’s flooding has caused a net loss of £30m, and so far in July a further net loss of £10m has been incurred. Furthermore, Italian earthquakes have caused losses of £35m. We keep RSA as a buy for income.
A punishing weakening in the rupee has hit reported results at Indian renewable energy company Greenko (GKO) but the underlying business is making good progress and has more than 1GW of wind power opportunities in its pipeline. We keep our buy recommendation.
Another Simon Thompson recommendation, foods business Zetar (ZTR), has produced resilient enough results considering the tough economic environment and is rewarding shareholders with a 33 per uplift in its dividend payout.
Booker Group (BOK) is on course to meet expectations for the full year after a 1.7 per cent rise in like for like sales in the 12 weeks to 22 June. We keep it as a buy.
Fellow buy recommendation Speedy Hire (SDY) has also performed well in tough market conditions with underlying revenues in the three months to June up by 5.6 per cent. It also announced a 5 year, $50m contract in Abu Dhabi today.
Norseman Gold (NGL) has requested the suspension of trading on the Australian Stock Exchange today as it tries to complete a A$20m placing.
Russian industrial and commercial property business Raven Russia (RUS) has announced the acquisition of a warehouse and a development project on the outskirts of Moscow. We keep as a buy.
Fuller Smith & Turner (FSTA) has turned in a decent trading performance despite the poor weather which has left its beer gardens empty. Total sales were up 8 per cent in the 15 weeks to 14 July but like for like sales fell by 1.1 per cent. Nonetheless, we retain our buy recommendation.
Specialist financial trading software provider Brady (BRY) confirms it is on course to meet full year expectations after growing revenues by more than 30 per cent in the first half. We remain buyers.
KEY STORIES:
Shares in insurance business Homeserve (HSV) are up this morning despite denials from the company that it is in talks over a possible sale of the business.
Also amongst the biggest risers is Leni Gas & Oil (LGO) after it announced the sale of its interests in Spain for €8m.
On the downside, shares in AEA Technology (AAT) have crashed after the company admitted that its financial woes are such that it has been unable to agree a way forward with its lenders and that shareholders are unlikely to see any value ascribed to their holdings should the business be taken over.
OTHER COMPANY NEWS:
Fastnet Oil & Gas (FAST), the recently floated vehicle of a group of ex-Cove Energy executives, has done its first deal. It has acquired Pathfinder Hydrocarbon Ventures for up to $9m, giving it access to a potentially high impact prospect off Morocco.
