European stocks dipped on early trading in response to Friday’s sell-off on Wall Street that left the NASDAQ Composite nursing its worst fall in two months. However, our Trader Dominic Picarda reveals that there isn't any immediate need to worry from a technical angle.
IC TIP UPDATES:
Brewing giant SABMiller (SAB) plans to consolidate its South African and African regions into one from July 1 for management purposes, and the new entity will be headed up by Mark Bowman, currently managing director of SABMiller Africa.
KEY STORIES:
API Group (API) expects to report a positive year end cash position for the first time in 15 years but warned that its final results will be at the lower end of expectations.
A trading update from Cranswick (CWK) foreshadows a 12 per cent increase in underlying full year sales with growth across most product categories, particularly pork, bacon and cooked meats. The East Yorkshire-headquartered food manufacturer said that total sales for the year to 31 March were 13 per cent higher after taking into account the contribution from acquisitions. Export sales were said to be well ahead of the levels reported in the previous financial year, reflecting robust demand for pork in the Far-East.
Graphene NanoChem (GRPH) subsidiary – Platinum NanoChem – has signed a collaboration agreement with Emery Advanced Materials, a subsidiary of Emery Oleochemicals. Through the joint venture, Emery and Graphene NanoChem will create a plan for the development of a new generation of ready-to-use graphene-enhanced speciality chemical additives. The subsidiary has also entered into a joint venture with Scomi Oiltools to produce and supply a range of speciality chemicals, including PlatDrill and other graphene-enhanced green chemicals, for the oilfield chemicals market.
Synety Group (SNTY) reported significant growth for its first quarter with stark progress across many of its key performance indicators. Annualised recurring revenue was up 4 per cent to £1.28m.
In another update, technology group Carclo (CAR) said that it has traded in line with its expectations for the year to end-March as it delivers on its growth strategy.
Kentz Corporation (KENZ) has won a $570m contract for the Ichthys project onshore LNG Facilities in Darwin, Australia. This contract was awarded by JKC Australia LNG, a joint venture between JGC Corporation, KBR and Chiyoda Corporation.
Optical components manufacturer Gooch & Housego (GHH) revealed that trading was in line with management expectations at the half-year mark, but pledged to make further efficiency savings following the closure of its R&D operation in New Jersey.
Mineral sands producer Sierra Rutile (SRX) recorded an encouraging operational performance over the first quarter, albeit in line with forecasts at: 28,218 tonnes of rutile (a 12 per cent increase on the same period in 2013 production) and 6,868 tonnes of ilmenite (a 23 per cent comparative increase).
Quindell (QPP) has signed what is being touted as the world's largest telematics contract to date. It will involve a joint investment with the RAC in a new business: Connected Car Solutions (CCS). The initial investment for CCS will be £30m, with another £70m outlay subject to key milestones.
OTHER COMPANY NEWS:
A subsidiary of Xcite Energy announces (XEL) has entered into a memorandum of understanding with Teekay Shipping Norway AS), for the supply of a bridge linked Sevan floating storage and offloading facility for the life of the Bentley field.
Caracal Energy (CRCL) has signed a $140m (£84m) debt facility with a syndicate of lenders led by Natixis and Société Generale Corporate & Investment Banking as lead arrangers and bookrunners and ING Bank as mandated lead arranger.
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