Investors Chronicle articles from March 2005

Investors Chronicle archives from March 2005

Abandoned and unwanted.
March 4, 2005... Open pretty well any of those "How to" stock market books, and you will find a golden investment rule that says, in effect, that the best time to buy shares is when everyone else is despondently selling. I put it to the test, and reached for...

Spread watching.
March 4, 2005... Three good leading indicators suggest that the US economy is heading for a sharp slowdown: high oil prices, the flatter yield curve and, to a lesser extent, sluggish money stock growth. This raises the question: why isn't the market worried?...

Talking takeovers.
March 4, 2005... Takeover bids are good for companies - they allow them to use surplus cash to buy instant growth and gain market share. Takeover bids are good for shareholders, too - they push up share prices by enhancing earnings. Those are two of the...

Bone of contention.
March 4, 2005... What is the point of a company? Ask any stockbroker and they'll tell you it's to create value for shareholders. All the other nice things in business - making the customer king, offering a distinctive product or service, empowering staff, being...

IFRS rolls into town.
March 4, 2005... The magazine Accountancy Age may have had its tongue in its cheek in its first issue of the year when it described a process from which, "to divert our attention, it would take Elvis turning up in a chip shop with Osama Bin Laden and Robert...

Landing blind.
March 4, 2005... Is the party over for real-estate stocks? Recent performance suggests so. The sector generally, and British Land in particular, have both underperformed the All-Share index since mid-January. Our chart, right, suggests this could be just...

No mystery.
March 4, 2005... Why are index-linked gilt (linkers) yields so low? Most economists' presumption is that real yields should be roughly equal to the real trend growth rate. But this is clearly not the case now. Most people would put trend growth at around 2.5...

Any old iron.
March 4, 2005... If you had to pick a mineral commodity to invest in, iron ore probably wouldn't be top of your list. It's not high-tech like aluminium, nor romantic like gold, and it's not traded on a racy futures market as base metals are. But iron ore...

Elan shares crash after drug failure.
March 4, 2005... Elan could be facing financial difficulties for the second time in three years. Shares in the Irish drug company fell 70 per cent on Monday after Elan and its marketing partner, Biogen Idec, voluntarily withdrew sales of multiple sclerosis...

Phytopharm feels the pinch after merger.
March 4, 2005... Shares in Phytopharm fell 20 per cent after Japanese partner Yamanouchi signalled that it might return the rights to Alzheimer's drug Cogane following its merger with Fujisawa. Phytopharm had raised GBP24m in a placing and open offer to...

Malcolm set for a family affair.
March 4, 2005... Malcolm Group revealed a 105p-a-share bid by its directors to take the haulage and construction group back into family hands. The offer values Malcolm at GBP66.8m, and represents a 23.5 per cent premium to the closing price the day before the...

De La Rue rallies after beating forecasts.
March 4, 2005... De La Rue's shares gained 5 per cent on Wednesday when the company said that profits this year would be well ahead of market forecasts. Analysts had expected pre-tax profits of about GBP55m and EPS of 22p, but De La Rue will do better because...

Burren soars on Maurel rumours.
March 4, 2005... Burren Energy's shares are rising again on speculation that its partner in the M'Boundi field in Congo will be taken over. State-owned Indian Oil Company has said it wants to acquire Maurel et Prom, the French company that operates...

FKI sets up wind deal.
March 4, 2005... Engineering group FKI has found a buyer for its wind turbine division, DeWind, after announcing last year that it planned to exit the heavily loss-making business. Talks are progressing with Milton Keynes-based EU Energy plc, which makes...

Pilkington faces price-fixing probe.
March 4, 2005... Pilkington has been raided by European anti-trust officials investigating allegations of price-fixing among glassmakers. The European Commission can fine companies up to 10 per cent of sales if anticompetitive behaviour is uncovered, although 2...

Bid for Country & Metropolitan.
March 4, 2005... Shares in Country & Metropolitan jumped 13 per cent after the housebuilder announced that it had received a takeover approach. The south of England-based company, which has been focusing on the affordable housing market in the north of England,...

Week Ahead.
March 4, 2005... NEWS Tuesday 8 March French Connection reports full-year results amid speculation that the retailer could fall prey to Icelandic raider Baugur. The shares have rallied on reports that Baugur could be planning to take a stake in the...

Utilities under fire.
March 4, 2005... It was no surprise to see the utilities get a good kicking in last week's stock market sell-off. Despite their defensiveness, they were the worst-performing companies on the market. While the FTSE All-Share fell 1 per cent, the water and gas...

Gladstone goes hunting for Nickel.
March 4, 2005... High-pressure acid leaching (HPAL) was one of the great white elephants of the 1990s, sucking money out of resources companies that had pinned high hopes on the process to extract nickel from laterite ore. Nowadays, there are only four...

The rebirth of Ofex.
March 4, 2005... It's been a busy few months for former alternative investment market (Aim) chief Simon Brickles since taking over at Ofex. The focus has been on transforming it from a struggling market into one that provides a viable alternative for companies...

Gordian hopes to turn the clocks back.
March 4, 2005... Aim-hopeful Gordian harks sounds like a company from the late 1990s: it's a cash shell that has been set up to capitalise on acquisition and investment opportunities in the technology, media and telecoms sector. Gordian plans to join the...

Mortgage approvals collapse.
March 4, 2005... There were mixed signals about the housing market this week. The Nationwide building society reported that prices rose 0.5 per cent last month, the second such monthly rise. However, the Bank of England reported that mortgage approvals are...

Mercator raises cash for more drilling.
March 4, 2005... Mercator Gold has raised GBP1.25m through a placing organised by specialist resources broker Ocean Equities and by Phillip Securities. The money raised will be used to continue the company's aggressive drilling programme on its Annean joint...

PHSC plans Adamson's conquest.
March 4, 2005... Fast-growing PHSC has unveiled plans to acquire rival Adamson's Laboratory for GBP1m in cash and shares. Founded in 1985, Essex-based Adamson's is focused on asbestos testing, health and safety, and air-monitoring. The company is trading well...

Investment Trust News - At a premium.
March 4, 2005... The Association of Investment Trust Companies (AITC) is urging all trusts' boards to consider using treasury shares to control supply and demand. Boards have been able to buy back shares to control discount volatility since 2000, but shares...

Boots' profit warning blamed on slower consumer spending.
March 4, 2005... The retail sector may have caught a cold, but Boots is suffering from something entirely more serious. The health-and-beauty retailer stunned the City this week with a profit warning. It admitted that significant price-cuts have failed to boost...

UK Defence Contractors Flying High After AirTanker Award.
March 4, 2005... The Ministry of Defence has selected the AirTanker consortium as preferred bidder on the GBP13bn contract to provide air-to-air refuelling services to the Royal Air Force. AirTanker beat competition from Boeing to land the 27-year private...

Reed shares take a turn for the worse.
March 4, 2005... Shares in Reed Health collapsed 24 per cent as the specialist staffing group said that profits this year will miss City expectations. Analysts are upset that there has been no guidance from the company on just how bad trading is. Broker Robert...

Brittany backtracks from P&O ferry deal.
March 4, 2005... The transfer of P&O's Portsmouth-Le Havre route to Brittany Ferries has collapsed after Brittany said the deal was not commercially attractive. P&O will continue to run the route until October, when it will be discontinued. The loss-making...

Johnson snaps up Wembley dog tracks.
March 4, 2005... They think it's all over at Wembley - and soon it really will be, after the company sold its six dog-racing tracks. Entrepreneur Luke Johnson is paying GBP50.3m for the business, a price that Wembley's management says it's delighted with. ...

Institutional cash holdings increase.
March 4, 2005... The Bank of England reported this week that institutional cash holdings are growing strongly. They rose 1.3 per cent in January, and have grown by 6 per cent since September. Their bank deposits are now equivalent to 17.9 per cent of the...

TTG Europe admits to looking to sell.
March 4, 2005... Telecoms group TTG Europe has unearthed some significant accounting irregularities relating to the reverse takeover of the Cellular Holdings group of companies. It is currently taking legal advice. Meanwhile, TTG has agreed to sell Anglia...

Somerfield keeps icelanders in cold.
March 4, 2005... A takeover bid for second-rank supermarket chain Somerfield may not happen after the company's management refused to open its books to the potential buyer. Icelandic retail group Baugur was considering a bid of 190p a share for Somerfield....

Check before signing that cheque.
March 4, 2005... Buyers may be holding fire in the UK, but the popularity of buying a second home overseas shows no sign of abating. People are increasingly looking for a rental income as well as a holiday bolthole. And now there's a third incentive on the...

James Cropper comes good.
March 4, 2005... Shares in James Cropper rose 11 per cent, to a year high of 184p, earlier this week as the specialist paper manufacturer issued a positive trading statement. The company had suffered from the unprecedented rise in gas prices and had expected...

Your Child Trust Fund options.
March 4, 2005... What's a good place to invest money for 18 years? From April, that's the question that thousands of parents will be asking. They'll be able to invest the government's Child Trust Fund (CTF) hand-outs in any of the main asset classes, but must...

HSBC (HSBA).
March 4, 2005... With a branch on every UK high street, it's easy to forget just how international HSBC is. From every pound of group profit, less than 8p comes from UK personal banking customers, whereas 31.8 per cent of total profit is generated in North...

REXAM (REX).
March 4, 2005... Perhaps it's the effect of seeing all those millions of drinking cans every day, but Rexam is feeling thirsty again. The beverage-packaging king says it sees "excellent prospects" amid the numerous takeover possibilities in its industries. And...

WILLIAM SINCLAIR.
March 4, 2005... Main market. Lower sales to the retail and professional markets, combined with a poor peat harvest, have hit Sinclair. A new management team is now in place.

SWALLOWFIELD.
March 4, 2005... Main market. Savings from last year's restructuring programme are broadly on track, and the group has invested around half of these to build its operation in the China.

TRACE.
March 4, 2005... Main market. Recurring revenues now account for 50 per cent of total operating costs, providing Trace with a solid operating base. It now has net assets of 59p a share.

Economists versus IFAs.
March 4, 2005... One of the fascinating aspects of investing is the huge gulf between typical financial advice and the recommendations of economics. A great example of this gulf is the question: should younger people invest more in equities than older ones? ...

VIROTEC.
March 4, 2005... Aim. Virotec continued to develop its Bauxsol technology, which can be used to clean up acid mine waste. Given the current mining boom, the company looks well-placed.

DMATEK.
March 4, 2005... Main market. The group continued to broaden its work base, and this is providing greater visibility and opening up new opportunities. Nearly 40 per cent of revenues were recurring.

Beware the sting in the tale.
March 4, 2005... You may not be aware of it but, as an investors chronicle reader, you make perfect prey. For criminals peddling shares in investment scams, that is. As sophisticated investors, you are highly sought after because of your expertise and your...

BELGRAVIUM TECHNOLOGIES.
March 4, 2005... Aim. Last year, Belgravium secured a record order of GBP750,000. It has been frustrated by a failed acquisition, but early indications for 2005 are positive.

ROC OIL.
March 4, 2005... Aim. Roc sold its Saltfleetby gasfield in the UK for a profit and placed 10m shares after the year-end. That leaves it with a healthy A$200m cash pile with which to progress its exploration interests.

AVIONIC SERVICES.
March 4, 2005... Aim. Air traffic control technology

ST BARBARA MINES.
March 4, 2005... Aim. St Barbara sold a substantial stake in NuStar Mining at book value, thereby losing effective control. NuStar's figures therefore do not show up in these results.

CHARTERHOUSE COMMS.
March 4, 2005... Aim. Publisher

CONROY DIAMONDS AND GOLD.
March 4, 2005... Aim. Diamond and gold exploration

DROMANA ESTATE.
March 4, 2005... Aim. Property

FIELD SYSTEMS DESIGNS.
March 4, 2005... Ofex. Electrical instrumentation & control systems

INTERREGNUM.
March 4, 2005... Aim. Internet business

PHOSPHAGENICS.
March 4, 2005... Aim. Phosphagenics restructured, and is now the sole owner of Vital Health Sciences which makes dietary supplements and personal-care products. The company is opening new laboratories.

CLS (CLI).
March 4, 2005... Can life get any better for CLS? In May, it entered the FTSE 350 index, and then secured a landmark tenant - giant food retailer ICA - for a 250,000 sq ft development in Sweden. Venture capital technology investments Amino and Clearspeed...

FARSIGHT.
March 4, 2005... Aim. Surveillance software

MERCATOR GOLD.
March 4, 2005... Aim. Gold exploration

RAM INVESTMENT.
March 4, 2005... Aim. Shell company

HAMMERSON (HMSO).
March 4, 2005... Reported pre-tax profits at Hammerson were flattered by exceptional profits from disposals. The group took advantage of the buoyant investment market to sell eight properties for a combined total of GBP399m, which earned it exceptional profits...

TECHCLEAN.
March 4, 2005... Ofex. Franchising and computer cleaning

ULTIMATE FINANCE.
March 4, 2005... Aim. Cashflow finance provider

ZYZYGY.
March 4, 2005... Aim. Shell company

ACCESS INTELLIGENCE.
March 4, 2005... Aim. Information & service provider

APPIAN TECHNOLOGY.
March 4, 2005... Ofex. Traffic management & security systems

AWARD INTERNATIONAL.
March 4, 2005... Aim. Promotional incentives

EQ.
March 4, 2005... Aim. Marketing services

INTERMODAL RESOURCE.
March 4, 2005... Aim. Renting transport equipment

KEYCOM.
March 4, 2005... Ofex. Telecommunications services

LONGMEAD.
March 4, 2005... Aim. Ceramic bathroom accessories

GALLIFORD TRY (GFRD).
March 4, 2005... Galliford Try reports a stabilisation in house prices as people feel secure enough in their jobs to dip their toes back into the market. The company has already secured 79 per cent of full-year sales and is on track for 850 unit...

MAVINWOOD.
March 4, 2005... Aim. Shell company

NETWORK LTD.
March 4, 2005... Aim. Outdoor billboards operator

PARKFIELD PROJECTS.
March 4, 2005... Ofex. Design and build service

RIVER DIAMONDS.
March 4, 2005... Aim. Diamond mining and exploring

TIGER RESOURCE FINANCE.
March 4, 2005... Aim. Investment company

FIDELITY EUROPEAN VALUES (FEV).
March 4, 2005... Tim McCarron has done a fine job in replacing former star manager Anthony Bolton. Over the past three years, the trust's net asset value (NAV) is up 64 per cent, compared with the sector average of 25 per cent, and a 13 per cent return from the...

FOREIGN & COLONIAL (FAC).
March 4, 2005... Foreign & Colonial is to follow the lead of global growth sector peer Witan in attempting to spice up its performance, and cast off its image as a lumbering underperformer. The trust currently trades on the sector average discount of 14 per...

DECHRA PHARMACEUTICALS (DPH).
March 4, 2005... Dechra's goal of becoming an international veterinary drug supplier is in sight. Sales rose 18 per cent to GBP5.2m, boosted by cat thyroid drug Felimazole, which was launched in Germany and France in October. Numis has edged up full-year...

SKYNETGLOBAL.
March 4, 2005... Aim. Travellers' network provider

GENETIX (GTX).
March 4, 2005... Genetix insists there is strong demand for its drug discovery products. But the tough time the pharmaceutical companies are having, following the withdrawal of Merck's Vioxx, tells a different story. Drug giants are more likely to be...

SURFACE TRANSFORMS.
March 4, 2005... Aim. Carbon fibre-reinforced ceramics

PROVALIS (PRO).
March 4, 2005... The good news is that US demand for Provalis's diabetes monitor, in2it, is exceeding supply. The bad news is that sales of painkiller Diclomax were hit by the withdrawal of Merck's Vioxx, as Diclomax's margins were eroded by genetic products at...

NCIPHER (NCH).
March 4, 2005... The rising threat from cyber-crime helped encryption specialist nCipher deliver its first full-year operating profit since it came to the market in 2000. "There is more awareness of IT security as an issue than ever before," says chief...