Equities have given up a little more of the post-Fed rally from last week in early trading today but The Trader Dominic Picarda is comfortable with a pullback before his predicted resumption of the upwards trend.
IC TIP UPDATES:
Centrica (CNA) has decided not to proceed with a gas storage facility project in the UK southern North Sea and has put another on hold indefinitely due to the poor economics of gas storage and the government’s confirmation that it will not intervene in the market. Nonetheless we retain our buy on Centrica.
Ophir Energy (OPHR) has secured a rig to fulfil its 2014 drilling campaign offshore West Africa and has also rationalised its portfolio by relinquishing its interests in blocks in Madagascar and Congo Brazzaville as well as selling down its interest in the Berbera blocks in Somaliland from 75 per cent to 25 per cent. We maintain our buy recommendation.
Macau Property Opportunities (MPO) says its net asset value rose by 31 per cent to the equivalent of 260p a share in the year to June as the company’s portfolio grew in value by 28 per cent to $453m. The company bought back $22.8m worth of shares in the period and ended the year with $14.8m in the bank. Buy.
Simon Thompson recommendation Thalassa Holdings (THAL) is to acquire the Go Science business for $3.6m from its administrators, adding expertise in underwater surveying to its business. GO Science has developed a way of underwater mapping using unmanned submersibles.
Finsbury Food (FIF) managed to grow its adjusted profits by 19 per cent to £5.5m in the year to June despite a slight reduction in turnover to £176.6m, although this was partly down to the sale of the Free From business part way through the year, which helped to improve the balance sheet. Buy.
Mobility software specialist Globo (GBO) has issued strong half year results showing a 52 per cent leap in revenues to €32.2m and a 74 per cent improvement in profits at €14.5m. We keep our buy rating.
Another Simon Thompson recommendation, KBC Advanced Technologies (KBC) released interim results today showing a 15 per cent improvement in revenues and profits up from £700,000 to £2.9m. Simon will update on KBC in due course.
KEY STORIES:
Aberdeen Asset Management (ADN) has calmed the concerns of investors over the recent emerging markets rout by telling them that profits for the year to September are expected to come in at the top end of expectations. Assets under management at the end of September were £201.7bn, down from £209.6bn in June.
Drinks maker AG Barr (BAG) enjoyed a 5.8 per cent improvement in turnover in the six months to 28 July and profits rose by 12.3 per cent to £16.6m. The company has taken a £4.9m hit in exceptional costs associated with its failed merger with Britvic.
Dairy Crest Group (DCG) says trading has been ‘steady’ in what remains a ‘difficult’ trading environment which means profit expectations for the full year are unchanged. The four key brands are expected to trade ‘in line’ with last year and the dairies business is expected to pick up during the second half.
OTHER COMPANY NEWS:
Animal genetics specialist Genus (GNS) is to pay £24.8m to acquire Genetiporc, the procine genetics division of Canadian food company Aliments Breton Food Group.
Stobart (STOB) has offloaded the Admiral Retail Park in Eastbourne to Clerical Medical for £25m in cash.
