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News & Tips: Ocado, HSBC, Amara Mining, Communisis, Sirius Minerals, Lamprell, Chariot Oil & Gas & more

Today's market overview

Equities have jumped out of the blocks this morning, but The Trader Dominic Picarda is not convinced – he thinks we may need to endure another bout of selling yet before hitting proper lows.

IC TIP UPDATES:

Sell recommendationOcado ( OCDO ) has found itself in favour today after announcing an extension to borrowing facilities and a placing to raise £35.8m. This clears up some doubt as to how the company is to fund the next stage of its expansion plans.

HSBC Holdings ( HSBA ) has confirmed press speculation that it is in talks regarding the sale of its 15.57 per cent stake in Ping An insurance. We retain our sell rating.

Amara Mining ( AMA ), formerly known as Cluff Gold, has announced a significant upgrade to indicated resource at its Baomahun gold project in Sierra Leone. Total indicated resource is increased to 2.24m ounces. Buy.

Aureus Mining ( AUE ) has confirmed that, following a successful $80m fund raise which closed on Friday, it is on track to begin development of its New Liberty mine in Liberia. We reiterate our buy recommendation.

Simon Thompson recommendationCommunisis ( CMS ) has confirmed that trading is in line with expectations and the company’s pipeline of opportunities remains strong.

Fellow Simon Thompson recommendation, antique dealer Mallett ( MAE ), has suffered a tougher time during the second half of its year with Superstorm Sandy proving particularly problematic for its New York showroom. Trading is behind expectations and the business is unlikely to be profitable this year.

Chime Communications ( CHW ) says it is trading in line with expectations. We keep our buy rating.

Insurance services specialist Charles Taylor ( CTR ) also expects to meet market forecasts as strong trading in its management services business has offset weaker conditions in its loss adjusting business. Buy.

Indian renewable energy developer Greenko ( GKO ) has spent a modest €18.7m on three hydro power projects. We keep our buy.

Outsourcer Mitie ( MTO ) grew revenues by 5.6 per cent to £1.03bn in the six months to September and operating profits rose by 2.5 per cent to £52.9m. The order book rose by £400m to £9bn during the period. We maintain our buy recommendation.

KEY STORIES:

Lamprell’s ( LAM ) woes go on with the company reporting that recent investigations indicate that the profit impact of the various contractual problems it has already reported is worse than previously expected and further issues have also come to light.

Sirius Minerals ( SXX ), which wants to develop a world class potash mine in North Yorkshire, has upgraded its inferred resource estimate to 2.2 billion tonnes within an area representing 5 per cent of the total target area.

Wine retailer Majestic ( MJW ) has enjoyed a solid trading period in the six months to September with pre-tax profits up by 3.9 per cent to £9.2m although total sales dipped by 1.2 per cent due to a deliberate move away from wholesaling.

ATH Resources ( ATH ) has confirmed that investors are unlikely to see much value for their holdings in the company even after it attracted an initial investment from BECAP which could lead to further funding for the ailing coal miner.

AGA Foodservice ( AGA ) says that the Autumn sales season started later than usual, but nonetheless the trend is encouraging in both the AGA and Fired Earth businesses.

OTHER COMPANY NEWS:

Chariot Oil & Gas ( CHAR ) has commenced seismic survey activity offshore Mauritania.

Kyrgyz gold explorer Chaarat Gold ( CGH ) has reported that Shandong Gold Mineral Resources Group has secured Chinese regulatory approval to negotiate an investment into Chaarat.

READ MORE...

Read today's press headlines and share tips.

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By Graeme Davies,
19 November 2012

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