The Cypriot bailout has sent investors scurrying for the hills on resumed euro-wobbles. But The Trader Dominic Picarda believes this to be merely a correction in the longer term uptrend and expects to see major indices resume their assault on their highs again soon.
IC TIP UPDATES:
Housebuilder Berkeley Group (BKG) has won planning consents on eight sites since the half year end and acquired three more sites, all in and around London. Management wants to grow its land bank by 10 per cent this year. The company also confirmed its plan to pay an interim dividend of 15p, worth a total £20m, as part of its longer term plan to return £568m by September 2015. We retain our buy rating.
Simon Thompson recommendation LMS Capital (LMS) ended the year with net assets of £192.1m or 85p per share, down from 90p a year earlier, but this reflects £40m returned to shareholders during the year. The company has almost halved its overheads to £4.4m over the year as it adjusts its business in preparation for the realisation of the rest of its portfolio. Buy.
EKF Diagnostics (EKF) enjoyed a 20 per cent rise in revenues and a further improvement in margins, which flowed through to produce a doubling of adjusted profits to £3.2m. We keep our buy rating.
African budget airline Fastjet (FJET) has moved a step forward in its plans to acquire the 1 Time South African airline business from its creditors after filing a letter of intent with liquidators of the business. We maintain our speculative buy recommendation.
KEY STORIES:
Oil & gas giant BG Group (BG.) and partner Ophir Energy (OPHR) have announced strong well test results from the Jodari-1 gas discovery offshore Mozambique which confirms its ‘world class reservoir quality’.
San Leon Energy (SLE) has announced a strategic partnership with American oil and gas engineering giant Halliburton which will allow it to carry out further work to prove the viability of San Leon’s tight gas interests in Poland.
Interim results from quantum dot technology specialist Nanoco (NANO) confirm the huge progress the company has made in the past six months, which culminated with the signing of a worldwide licensing deal with US giant Dow Chemical for its technology.
Falklands oil explorer Rockhopper Exploration (RKH) has appointed geology and geophysics manager Fiona MacAulay as its technical director.
OTHER COMPANY NEWS:
Torotrak (TRK) has extended a licence with Allison Transmission for its transmission technology in return for a £6m fee. Allison has also agreed to subscribe for £2.5m worth of shares at a 20 per cent premium to the prevailing share price. Furthermore, Torotrak has acquired a 20 per cent stake in Flybrid Automotive, a flywheel technology business, with a view to buying the remaining 80 per cent by the end of this year.
Colombian oil explorer Amerisur Resources (AMER) reports yet more positive flow tests from its Platanillo prospect where total field capacity is estimated at 6,400 barrels of oil per day.
Capital Drilling (CAPD) reported record revenue in 2012 despite tough market conditions but profits dipped by 20 per cent, partly due to higher taxes.
Continental Coal (COOL) has announced a deal whereby South African mining business Village Main Reef will buy a 20 per cent stake in the business.
Aim welcomes a new palm oil business today in the form of DekelOil (DKL), which has raised £1.7m to invest in its palm oil interests in Sierra Leone.
