Equities are showing signs of bouncing back after the recent sell off but The Trader Dominic Picarda is not convinced that the current rally has enough strength yet and there may be more selling before the real rebound happens.
IC TIP UPDATES:
Vectura (VEC), which is developing treatments for Chronic Obstructive Pulmonary Disorder, has had its first product approved in Japan, which hopefully paves the way for further approvals with the EU targeted next. We keep our buy.
South American oil explorer Amerisur Resources (AMER) made an operating profit of $1.2m in the six months to June and hopes to reach 5,000 barrels of oil per day of production by the year end. Buy.
Sell recommendationElectrocomponents (ECM) has suffered disappointing first half trading, prompting a profit warning for the full year.
IGas (IGAS) has spent $66m buying some onshore gas assets adjacent to its existing development fields in the south of England. Buy.
Plastics business RPC Group (RPC) has seen revenues in the first half hit by currency issues and the tough economic conditions on mainland Europe, especially Spain. But improved sales of higher margin products means profits are likely to be ahead of last year. Buy.
Bellzone Mining (BZM) has issued half year results, confirming the potential of its Kalia and Forecariah iron ore projects in Guinea. Kalia has received a mining licence and, at its latest update, has 1.7bn tonnes of saleable product. We keep our buy.
Intermediate Capital Group (ICP) has grown assets under management to €12bn during the six months to 27 September. Buy.
Mytrah Energy (MYT) has made strong progress on its wind portfolio in India, with 316MW commissioned across 7 sites by the end of September with a further 24MW expected in the third quarter and another 270MW in development. Thus far operational performance and profits are better than forecast and the company expects revenues of $28m-$30m in the first half and profits of $10m-$12m. We maintain our buy rating.
Zambian agricultural business Zambeef (ZAM) expects full year performance, excluding the Zamanita edibles oils business, to be in line with expectations. Zamanita has been shut down for much of the year for an expansion project. Buy.
KEY STORIES:
G4S (GFS) has announced the results of its review into the Olympics contract debacle, concluding that chief executive Nick Buckles should remain in his job but two senior managers, Ian Horseman Sewell and David Taylor Smith be removed. Mr Buckles will also be supported by the appointment of a chief operating officer.
Thomas Cook Group (TCG) has maintained full year forecasts after signs of improvement in recent trading.
Ophir Energy (OPHR) announces the commencement of the next stage of drilling by partner BG Group (BG.) on the Jodari field offshore Tanzania.
OTHER COMPANY NEWS:
Software Radio Technology (SRT) has shipped another tranche of its $3.7m order for marine identifiers and expects to ship the balance to be shipped before the end of the year.
Tanfield Group (TAN) has reversed the decline in its revenue growth in the first half of the year with sales edging up from £23.7m to £24.1m and losses narrowing from £8.2m to £7m. The company is expecting its first break even month since the recession in October.
