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News & Tips: Faroe Petroleum, Trap Oil, Fenner, Anglo American, Enegi Oil, Elementis & more

Markets are selling off again
October 26, 2012

European markets are selling off again, and The Trader Dominic Picarda points out that they have further to go to match the levels the US markets have fallen back to, so he is remaining cautious.

IC TIP UPDATES:

Faroe Petroleum (FPM) has been awarded seven new licences on the UK Continental Shelf in the UK government’s 27th round of licensing. We keep our buy.

Fellow buy recommendation Trap Oil (TRAP) also benefited from the licensing round, winning a share of three licences with a Norwegian partner.

Conveyor belt specialist Fenner (FENR) has exchanged contracts on the £10.4m acquisition of Australian Conveyor Engineering. We maintain our buy on Fenner.

KEY STORIES:

Cynthia Carroll has announced that she is to step down as chief executive of mining giant Anglo American (AAL) as soon as a replacement has been found. Rumour mongers have suggested that Xstrata (XTA) chief executive Mick Davis could be a contender.

Other beneficiaries of the UK’s latest licensing round include the likes of Enegi Oil (ENEG), which has been awarded two licences and Valiant Petroleum (VPP).

Speciality chemicals business Elementis (ELM) has issued a solid enough trading statement but warned that weakness in its oilfield drilling business will impact operating profits.

CPP Group (CPP) has seen revenues decline by 6 per cent since the end of June compared to the same period last year. The company has also warned that next year’s performance will be materially lower than this year. The company remains in discussions with the Financial Services Authority over customer redress.

OTHER COMPANY NEWS:

Ascent Resources (AST) has confirmed it is in early stage talks over the farm out of a Slovenian asset.

Textiles business Berendsen (BRSN) has said that trading continues to be solid with underlying revenues up 2 per cent in the past three months.

African Barrick Gold (ABG) has announced third quarter results with revenues down from $354m last year to $265m after lower than expected production.