Today's market overview
The Trader Dominic Picarda is wary of bailing out of the rally too early even though equities are down marginally today, and he is waiting for Germany’s Dax to join in the party properly.
IC TIP UPDATES:
Online grocer Ocado (OCDO) has announced the appointment of retail heavyweight Sir Stuart Rose as its new chairman, replacing Lord Grade. Our recommendation is under review.
Sell recommendation Cairn Energy (CNE) says it has $1.6bn in the bank as it gears up for a busy 2013 with exploration and development wells planned offshore Morocco and in the North Sea. The company will be hoping for more success after a disappointing 2012 with the drillbit in Greenland.
Property company Grainger (GRI) is teaming up with APG Strategic Real Estate to build a residential property fund which will begin with the acquisition of Grainger’s part-owned £349m G:res 1 fund. Buy.
Mwana Africa’s (MWA) Freda Rebecca mine in Zimbabwe produced 16,506 ounces of gold in the fourth quarter, up 43 per cent over the same quarter last year. Also Mwana’s Bindura Nickel Corporation subsidiary is expecting first sale of Nickel in the second quarter after restarting the Trojan mine in Zimbabwe. We maintain our buy recommendation.
Amara Mining (AMA), formerly known as Cluff Gold, says its Kalsaka mine in Burkina Faso produced 53,544 ounces in 2012, down marginally from the previous year due to ‘challenging conditions’. 2013 production from the Kalsaka and Sega mines is expected to be up to 60,000 ounces. Buy.
Funerals business Dignity (DTY) is acquiring Yew Holdings for £58.3m, adding 40 funeral locations and two crematoria in the North of England. The company is raising £24.2m to fund the acquisition. We maintain our buy rating.
Sell recommendationAbcam (ABC) says it expects revenue growth of 28 per cent in the six months to December but continued delays in confirmation of future levels of research spending in the US are impacting revenue growth.
Pubs group Marston’s (MARS) saw like for like sales growth of 1.2 per cent in the 16 weeks to 19 January even though the final week was affected by snow. Christmas trading was strong with Christmas Day takings up 10 per cent. We keep our buy.
Location based technology specialist Ubisense (UBI) has experienced mixed trading with the timing of some projects leaving revenue growth below expectations. But profits should be in line.
The investigation into irregularities at parts of Bumi’s (BUMI) business has concluded with very little concrete revealed. The company says evidence gathered supported some allegations levelled at the business but key witnesses were unwilling to be interviewed which means such allegations remain unsubstantiated. Management also point out that many of the allegations pre-date the acquisition of Bumi by Vallar. The report on the investigation will not be published.
OTHER COMPANY NEWS:
New World Oil & Gas (NEW) says drilling at its Belize prospect is taking longer than expected but is close to reaching its target depth.
Trap Oil (TRAP) has completed its farm in to Extract Petroleum’s acreage, awarded in the recent 27th licensing round.
Sound Oil (SOU) has received consent for its Nervesa appraisal well from the Italian authorities.