Markets are in decent spirits this morning on the hope that another slug of central bank liquidity could be coming their way, The Trader Dominic Picarda is biding his time, mindful that such short term hits have previously produced hefty hangovers once the drugs have worn off.
IC TIP UPDATES:
Semiconductor business IQE (IQE) is popular this morning, its shares have risen by more than 10 per cent on the back of the acquisition of the wireless semiconductor manufacturing business of RFMD, which comes with a seven year supply agreement. We continue to rate IQE a buy.
The Barryroe oil discovery in the Irish Sea has caused a great deal of excitement for our buy tip Providence Resources (PZQ) in recent months, and today’s update goes some way to explaining why. Assay results on oil extracted from the well has revealed it to be high quality light sweet crude.
While we’re on the subject of oil finds, the Carnaby exploration well in the North Sea, which is part of the Catcher find, has hit black gold, which is a welcome bit of good news for our sell tip Cairn Energy (CNE), but not significant enough to make a major impression for a company of Cairn’s size. It is better news for smaller partners Nautical Petroleum (NPE) and Premier Oil (PMO).
San Leon Energy (SLE) has expanded its shale gas acreage in Poland through the acquisition of 75 per cent working interest in three different concessions for $15m. This adds to the attraction of San Leon and we retain our buy recommendation.
Falkland Islands Holdings (FKL) will be well positioned should the oil boom there finally kick off, which is why we remain buyers of the company. For now, its hotels, shops and squid fishing business is doing ok, with revenues up by 7 per cent and underlying profits by 22 per cent in the year to March.
Shares in composting group TEG (TEG) have given up the ghost this morning after the company announced it is no longer in an offer period and is looking at raising £2m in an open offer at 3p, money which the company is likely to need to continue as a going concern. We were hanging on for a takeover and this removes any last reason to hold the shares.
Sticking with waste, Nature Group’s (NGR) oil remediation services are in demand judging by full year results which saw revenues and profits pretty much double. But costs associated with an accident in Gibraltar hit headline figures.
Vodafone (VOD) has confirmed it is in talks with Australasian telecoms giant Telstra over a possible transaction in New Zealand. We remain buyers.
KEY STORIES:
Lloyds Banking Group’s (LLYO) shares have enjoyed few sunny days of late, but the rumours of liquidity injections have helped today as has the sale of a portfolio of Australian real estate loans worth £809m.
Frontier oil explorers continue to attract investor intention despite the obvious risks. Take Range Resources (RRS) and Red Emporer Resources, (RMP) which are jointly exploring for oil in Puntland, a region of restive Somalia. News that they have begun drilling a well there has been well received today.
OTHER STORIES:
Namibian oil explorer Tower Resources (TRP) has been boosted by news that Spanish giant Repsol is to buy into one of its licence interests.
Read today's newspaper share tips and press headlines.
