Equities have started the day flat in London after yesterday’s bounce, which fed into The Trader Dominic Picarda’s theory that indices had become oversold.
IC TIP UPDATES:
Qinetiq (QQ.) has reaffirmed its guidance despite what it describes as ‘challenging’ market conditions. The global slowdown in military spending continues to affect the Global Services business but a new law on US defence spending has given better visibility of slower than previously expected reductions in spending there. The European, Middle East and Africa business unit has delivered a ‘robust’ performance. We maintain our buy rating.
Quintain Estates and Development (QED) has acquired a 21 year lease on an office building in Holborn, central London, for £13.7m. Buy.
Juridica Investments (JIL), which invests in US legal cases, has updated on activity in its portfolio. Its commercial portfolio received $7m in December from two cases in which the company has invested just over $5m, one of which is ongoing. Meanwhile a case in the anti-trust portfolio, which has already delivered $69m in proceeds to the company, has been held up due to an appeal. We maintain our buy rating.
KEY STORIES:
DRL Holdings has announced its intention to float its Appliances Online retail business under the name AO. The online appliances retailer has around a 24 per cent market share in UK online appliance sales, a market which is forecast to grow at 11 per cent a year through to 2016. In its last full financial year, to March 2013, AO posted revenues of £275.5m and earnings of £10.7m, up 57 per cent on the previous year. The business wants to raise £60m from the sale of new shares and an unspecified number of shares from existing shareholders. The company has announced the appointment of Asos chairman Brian McBride as senior non-executive director.
Shaftesbury (SHB) has reported continued strong demand for its primarily West End-focused portfolio, which it effectively fully let. The company is refurbishing a number of properties and has also been active in securing refinancing opportunities at better rates.
OTHER COMPANY NEWS:
Chinese oil and gas drilling services business Greka Drilling (GDL) says it is not aware of any reason for the recent fall in its share price.
