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News & Tips: Randgold Resources, YouGov, Imagination Technologies & more

Equities have given up the ghost
February 8, 2016

After a steady start, equities ran up the white flag again in London. Click here to see what The Trader Nicole Elliott makes of the markets.

IC TIP UPDATES:

Lower than expected cash costs and record fourth quarter production sent shares in Randgold Resources (RRS) up a further 3 per cent today. The company now believes its Loulo-Gounkoto and Kibali mines will produce more than 600,000oz of gold a year for the next decade, at total cash costs of $600 an ounce. With the cash pile mounting, we remain buyers.

International market research and data analytics group YouGov (YOU) revealed that first-half trading was in line with expectations. It also reported good growth in data products and services such as BrandIndex and Omnibus. The company’s shares are up 18 per cent since our buy tip in October. Buy.

Shares in self-storage group Lok’n Store (LOK) moved up over 3 per cent after a strong first-half trading update. Like-for-like revenue grew by 5.4 per cent, boosted by a rise in occupancy rates and a 3.3 per cent hike in prices. Debt has been kept low, thanks to £2m from the sale of the old site in Reading and £3.5m from the Swindon sale. Buy.

KEY STORIES:

It’s the end of an era at Imagination Technologies (IMG). Hossein Yassaie, who joined the microchip designer in 1992 and took the reigns as chief executive in 1998, is stepping down from the role. The news sent shares down 3 per cent in morning trading. The group also issued yet another profit warning: it now expects to report a pre-tax loss in the year to April. Under interim chief Andrew Heath - the former boss of Alent - Imagination intends to sell its loss-making Pure business and slash operating costs by £15m in the next financial year.

Intelligent Energy (IEH) has signed a joint development agreement with smartphone manufacturer to develop a programme to address smartphone power limitations. The contract has a total value of £5.25m and be cashflow positive.

OTHER COMPANY NEWS:

Market Tech Holdings (MKT), which owns a vast swathe of property in the environs of Camden Market in London, has received planning permission for the development of Camden Lock Market.

Paul Waterman has now started his reign as chief executive of Elementis (ELM). The chemical company previously announced plans to give him the role in November, following the retirement of former boss David Dutro.

Shares in accesso (ACSO) climbed 5 per cent after the virtual queuing and e-ticketing group extended its landmark deal with theme park giant Six Flags. Management expects to earn transactional and repeatable revenue until the end of 2025.

Digital marketer Matomy Media (MTMY) received approval for a dual listing on the Tel-Aviv Stock Exchange. The news sent its shares up 8 per cent.