Articles

Edison Investment Research today published a report on Inchcape (INCH.L, LSE:INCH) entitled "Strong Second Half". In summary, the report says:

"While trading results fulfilled the promise of the December 2009 trading update, the market seems to be concentrating on the uneven rate of recovery across the group’s various markets, rather than Inchcape’s medium-term potential and the strong balance sheet. The share price appears to have stabilised over the past six months, but refuses to acknowledge the underlying quality of the overall business which enables management to grow earnings in flat markets."

Edison Investment Research today published a report on SNC-Lavalin entitled "Balanced Exposure". In summary, the report says:

"SNC-Lavalin is a truly global play with broad-based end markets that allow investors to take a secondary exposure to the upturn across mining, transport infrastructure, oil & gas and power. The performance of the group over the past five years has shown its resilience even in these turbulent economic times with a 30% CAGR in net income and a 28% CAGR in dividends. Likewise, with improved risk management practices following the impact of the poor performing thermal power project in 2007, return on equity has averaged 28% over the past two years. Given the group’s ability to transport knowledge from..."

Edison Investment Research today published a report on Ym Biosciences entitled "Cytopia Adds Diversity". In summary, the report says:

"YM BioSciences has extended its cash runway into 2012 by raising US$17.5m after its February all-stock acquisition of Australian biotech, Cytopia. Cytopia adds two oncology projects (including an oral VDA) to YM’s portfolio, and diversifies risk. Nevertheless, potential best-in-class EGFr inhibitor, nimotuzumab, remains central to the investment thesis: read-out of key clinical trials and possible further partnering activity on the back of this suggests that 2010 will be an important year for YM."

Edison Investment Research today published a report on Merrion Pharmaceuticals entitled "Imminent Deals". In summary, the report says:

"Merrion transforms injected drugs into oral pharmaceuticals, offering relatively low development risk with minimal marketing uncertainty. Final FY09 results on 8 March show strong revenue growth due to payments from Novo on oral insulin and GLP-1 for diabetes. We anticipate a major Orazol deal in Q2-Q3 based on last year’s clearly indicative Phase II data. The formal grant of the US patent removes a potential uncertainty. Merrion may also sign other deals during 2010. "

Cove Energy announced this morning a placing of 64,300,000 shares of 1 pence each at 40 pence per ordinary share. They have raised £25.7 million to be allocated towards explorational commitments and working capital. Cove expect the new ordinary shares to trade on AIM on the 15th March, 2010.The upstream oil and gas company say they will use the new capital  for ongoing commitments in Rovuma Basin, offshore Mozambique as well as for general working capital requirements. Following the success of the Windjammer project thirty miles off the Mozambique coastline in February 2010, the company are said to be...

Edison Investment Research today published a report on Molins (MLIN.L, LSE:MLIN) entitled "Pension Fears Eased". In summary, the report says:

"Molins shares have rallied significantly from their low point in spring 2009, but they remain materially undervalued relative to larger, UK-based multinational engineering groups. Fears about the pension scheme liabilities should have eased substantially following agreement with the trustees and sentiment ought to improve as the Packaging Machinery division recovers over the next two years."

Global Energy Development (LON:GED) reported today a pre-tax profit slump in 2009, attributable to volatile and consistently low oil prices. In a separate announcement today, the company announced their three year plan to increase production volumes.  Global Energy Development is a petroleum exploration and production company focused on Latin America, where they pursue a long-term strategy of finding and developing reserves. The company holds 100% of all contracts and rights to explore for and/or produce oil and gas from a geographically diversified portfolio of prospective acreage in Colombia, Peru and Panama.  According to the report, profit before tax for the year plunged...

Edison Investment Research today published a report on China Real Estate Opportunities entitled "Tender Offer Underway". In summary, the report says:

"Results for the year to 31 December 2009 were broadly in line with forecasts and February’s trading update. EPRA NAV/share in GBP was 14% down for the year overall, at £11.37, but recovered by 7% in H209. Income was stable in local currency, despite a fall in the average occupancy rate, due to increases of up to 5% in rents/sq metre. We covered operational progress including asset sales and refinancing in our recent update. As previously announced, CREO is currently engaged in initiatives to improve its equity rating, ie a tender offer to address a stock overhang, and a proposed..."

Edison Investment Research today published a report on Sqs Software Quality Systems Ag (SQS.L, LSE:SQS) entitled "Recovery Underway". In summary, the report says:

"Despite weaker than expected revenues, SQS reported slightly better than forecast FY09 earnings and has seen signs of recovery in several markets. We see FY10 as a recovery year, followed by a year of stronger growth as the company’s managed services business gains momentum and the IT services environment improves. The stock trades at c 11x FY10E adjusted EPS with a 3% dividend yield. "

Edison Investment Research today published a report on Allocate Software (ALL.L, LSE:ALL) entitled "Q3 Trading Update". In summary, the report says:

"Allocate’s trading update points out the scale of activity across the quarter to end February, encompassing the Time Care acquisition and a continuing flow of new contract wins, most notably in the healthcare sector. We are not changing our forecasts on the back of the statement, but point out that the expected strong earnings growth in the next full financial year will erode much of the premium. Our DCF indicates a price over £1, which would take better account of the installed base."

Edison Investment Research today published a report on Chime Communications (CHW.L, LSE:CHW) entitled "Year Of The Meerkat". In summary, the report says:

"Chime’s preliminary figures were ahead of expectations, showing organic growth well above the market in all four group activities. International business is now 46% of operating income, through following clients rather than setting up heavy overhead, with the Middle East and Africa key areas. Political uncertainty is the main dampener in all areas as decision making is put on hold. Until that is resolved, consensus earnings are likely to stay on hold, but the rating is nevertheless modest. "

Bpc (LON:BPC, 4.1p, ▼ (5.75%)) announced that the Company has placed a total of 69,842,860 new ordinary shares, at a placing price of 3.5p per share with institutional shareholders to raise approximately £2.4 million, gross of expenses. The Company intends to use the net proceeds from the Placing to provide additional working capital. Cove Energy (LON:COV, 41p, ▼ (2.96%)) announced the Company has conditionally raised approximately £25.7 million before expenses by the issue of 64,300,000 new ordinary shares at a price of 40p per ordinary share. New funds will be utilised for the Company's ongoing commitments in Rovuma Basin offshore Mozambique...

Fox Davies Capital today published a report on Ascent Resources (AST.L, LSE:AST) entitled "Production On-track In Hungary". In summary, the report says:

"Ascent Resources plc, through its subsidiary PetroHungaria kft, has successfully tested and completed the PEN-101 well, in the Penészlek area of the Nyírség exploration permits in eastern Hungary.  Once the rig has departed the site, the PEN-105 well will commence production to sales. The completion of the PEN-101 well is, as planned, in a Miocene gas bearing formation within a structure defined on the 3-D seismic acquired in 2008. Initial production rates achieved during preliminary testing exceeded 1.0MMscfd, and productivity is expected to be improved in the coming days by the use..."

Tullow Oil Plc (LON:TLW, PINK:TUWLF) announced this morning that their 2009 annual results were down on 2008, despite exceptional exploration developments. The group attributed the downturn to  a slump in production volumes and commodity prices. Tullow is one of the largest independent oil and gas exploration and production companies in Europe, quoted on the London and Irish Stock Exchanges. The Group has interests in over 85 exploration and production licences across 23 countries and focuses on four core areas: Africa, Europe, South Asia and South America.  In Africa, Tullow has production in Gabon, Côte d'Ivoire, Mauritania, Congo ...

Edison Investment Research today published a report on Statpro Group (SOG.L, LSE:SOG) entitled "SaaS Revolution". In summary, the report says:

"StatPro has released a solid set of results with revenue and operating profit slightly ahead of our forecasts. We understand the group has been experiencing a significant increase in interest in its new web-based product StatPro Seven, following a revised business model that significantly widens the target customer base, and StatPro Revolution is being launched for beta testing this month. These two new SaaS products have the potential to transform the business at a number of levels."

Fox Davies Capital today published a report on Gulf Keystone Petroleum (GKP.L, LSE:GKP) entitled "Two Out Of Two, Bijeel-1 Strikes Oil In Kurdistan". In summary, the report says:

"Gulf Keystone announced that Kalegran Ltd., a 100% subsidiary of MOL Hungarian Oil and Gas Plc. and the operator of the Akri Bijeel block in Kurdistan, concluded a successful oil test in the Bijeel-1 exploration well in the Akri Bijeel block. The tested zone is in the upper Jurassic and flowed at rates of up to 3,200 bopd with associated gas rates of 933,000scf/d. Oil gravity was 18oAPI and flowing wellhead pressure was 420psi on a 48/64" choke. Drilling operations are still in line with previously announced plans, following completion of the full test cycle, drilling will resume from the..."

Edison Investment Research today published a report on Epigenomics AG entitled "Positiver Ausblick". In summary, the report says:

"PRESEPT study issues have been resolved by sample retesting. The reasons for the outlier results have not been disclosed. The academic steering group has shown that test sensitivity (percentage of true cases) is 62.75%. The specificity is low at 89% (percentage of true negatives). Helpfully, the negative predictive value (NPV) was calculated at 99.7%; this is the probability that a negative test results is really negative. Sadly, the positive predictive value (PPV), the chance that a positive SEPT9 result is true, was not estimated. To be helpful, we calculate this at 3.56%."

Edison Investment Research today published a report on Brady (BRY.L, LSE:BRY) entitled "Positioned For Growth". In summary, the report says:

"In spite of the challenging market conditions, management notes there are signals that the pace in market activity is now increasing and we believe Brady is well placed to build on the momentum it has achieved over the last two years. The pipeline remains strong, support is being expanded to service global clients, and the group is positioned to benefit from the growing quality and scale of customers."

Oil & Gas News Gulf Keystone Petroleum (BUY, £2.00) (LON:GKP, 93.75p, ▲ (9.33%)) has negotiated with the Kurdistan Regional Government (KRG) to reorganise the Company's interest in Gulf Keystone Petroleum International (GKPI) following a material default by ETAMIC. Under the agreement the 50% shareholding of GKPI held by ETAMIC reverts to GKP. GKPI will then be a 100% subsidiary of GKP. GKPI will pay $40m to the KRG which is an Infrastructure Support Payment due and owing by ETAMIC, in return for GKPI maintaining its 80% interest in Sheikh Adi and 40% interest in Ber Bahr. Gulf Keystone will make a...

One of the things that intrigues me about Pursuit Dynamics (LON:PDX) is that views on it are so polarised. Look at any of the bulletin boards - or at press comment on the company - and you'll find half the world seems to hate it, while the other half thinks it's the Second Coming. There doesn't seem to be much in the middle. The other thing that intrigues me is that the share price has rocketed over the last couple of weeks, particularly since the February 25th announcement. ...