After another solid week last week, equities are taking a breather this morning but The Trader Dominic Picarda is sticking with his bullish stance.
IC TIP UPDATES:
Gulf Keystone Petroleum (GKP) has reached an agreement with key shareholders, including 5 per cent holder M&G Recovery fund, after several rounds of discussions. This means the shareholders will now support the election of Simon Murray as chairman of the company while the board will not oppose the four nominations put forward by M&G for board positions with a vote to be held later this week. We keep our buy rating.
Providence Resources (PVR) reports that the first well drilled on the Dunquin prospect offshore Ireland proved to be water bearing. Our recommendation is under review.
First Property Group (FPO) has acquired a vacant office building in Bracknell and six office buildings in Old Woking for £3.4m with a view to redeveloping the buildings into residential buildings. This represents First Property’s first foray into residential development in the UK since 2003. We keep our buy.
Trading software specialist Brady (BRY) reports in a half year trading statement that revenues in the first half of 2012 rose by 23 per cent on the previous year and that recurring revenues now total 57 per cent of the whole. Buy.
Well head technology specialist Plexus Holdings (POS) has won a further £2.5m contract with Statoil, but revenues from this deal don’t start until the third quarter of 2014. Nonetheless, we retain our buy recommendation.
KEY STORIES:
Balfour Beatty (BBY) has been awarded an £80m contract for the construction of a student accommodation building in London for Urbanest.
Oil and gas explorer Soco International (SIA) reports success from its latest well offshore Vietnam with the TGT-10X well in the Te Giac Trang field hitting 117m of net pay. In Africa, Soco has also commenced drilling on the Lideka East Marine prospect in the Congo and is preparing for a two well exploration project in Angola.
Industrial property specialist Segro (SGRO) has completed two sizable disposals from its portfolio. The IQ Winnersh light industrial and office park was sold for £245m and an office and distribution facility in Frankfurt brought in another €46m.
OTHER COMPANY NEWS:
Abcam (ABC) reports another good period of trading with management expecting to post a 25 per cent improvement in revenues. But management also cautioned over the effects of sequestration in the US which means the market there will be uncertain and more difficult to predict.
Half year figures from LED specialist Dialight (DIA) show another strong performance from its lighting segment, where revenues grew by 70 per cent and profits by 180 per cent. But overall profits dipped as the company took a hit for the reorganisation of its obstruction signals business after the loss of its distribution partner.
GW Pharmaceuticals (GWP) has filed an application to expand the approval of its Sativex treatment for multiple sclerosis to France.
