Investors Chronicle articles from October 2004

Investors Chronicle archives from October 2004

Dread tape.
October 1, 2004... New policemen, bigger stick. The City watchdog, the Financial Services Authority (FSA), has more than doubled the punishment it doles out to wrongdoers. The regulator's new chairman, Callum McCarthy, and chief executive, John Tiner, have handed...

All about me.
October 1, 2004... On the page opposite, I show that there could be big money to be made from buying US stocks that have fallen sharply during the past few years. However, I won't buy them. This isn't hypocrisy, though. It's because my utility function with...

Reading the small print.
October 1, 2004... A little while ago, I took over the management of a portfolio built up by someone else. It was an unwieldy thing, containing many unfamiliar shares. I have been working my way through them, giving each in turn a serious once-over and - until...

The profits illusion.
October 1, 2004... Corporate earnings should grow nicely in the next few months. Research group IBES calculates that analysts expect earnings per share to rise 11.8 per cent next year, after 18.7 per cent growth this year. Almost all this slowdown is due to just...

When dogs bark.
October 1, 2004... Today might be one of the rare occasions when investors should do something. You could buy the following: Delta Air Lines, Dynegy A, Calpine, Ciena, Qwest, El Paso, Tenet Healthcare, Winn-Dixie Stores, King Pharmaceuticals and Electronic Data...

Binge thinking.
October 1, 2004... When businessmen start getting into bed with politicians, we've got every right to be wary. The two are regular adversaries, so the chances are that something is up. That's why it's unnerving to see the gushing praise that some operators in the...

Surprisingly high.
October 1, 2004... The payout on US shares isn't as bad as it seems. Latest figures from the Federal Reserve show that non-financial companies paid a mere $67.4bn in dividends in the second quarter. That's 11.7 per cent down on a year ago, and gives an...

Ofgem reverses price decisions.
October 1, 2004... The electricity regulator, Ofgem, has made significant changes to its price-control regime, which was originally announced in June. And the revisions have been welcomed by most of the 14 regional electricity companies. One of the most...

Britain suffers seasonal recession.
October 1, 2004... The UK has had a recession - and no one's noticed. Official figures released this week show that real gross domestic product (GDP) fell by 1.6 per cent in the second quarter, after a 2.3 per cent slump in the first. The strong quarterly growth...

RMC receives concrete offer.
October 1, 2004... Although many in the City thought a bid for RMC would be a welcome relief for its beleaguered shareholders, none were expecting the knock-out offer delivered by the third-largest global cement maker, Cemex. This explains the 42 per cent jump in...

Centrica moves in for residential services.
October 1, 2004... Centrica has paid $150m (GBP83m) or six times cash profits for Residential Services Group in the US, a provider of plumbing and maintenance services in Texas and Ohio. Centrica has over 1m energy customers in those two states. The move fits in...

Countrywide fails to reassure on profits.
October 1, 2004... Estate agency chain Countrywide Assured added to the atmosphere of gloom in the housing market this week with a profit warning. The company said that, at the end of August, there were 20 per cent fewer transactions in the estate-agency pipeline...

Countryside gloom at slow housing market.
October 1, 2004... Housebuilder Countryside Properties issued its second profit warning of the year this week, blaming a weakening housing market and construction delays. Full-year profits will be well below those achieved last year. Countryside is in bid talks...

Institutional interest.
October 1, 2004... Interest rates may have been creeping up, leaving the residential housing market teetering on a knife-edge, but this hasn't fazed institutional real estate investors. Property remains an attractive asset class for fund managers, particularly...

Land Securities to restructure debt.
October 1, 2004... Property giant Land Securities has announced an innovative debt restructuring, with GBP1.8bn of unsecured notes to be swapped into a new structured vehicle. Although the face value of the debt will increase to GBP2.3bn, it will carry a lower...

BDI hopes to sparkle with regional focus.
October 1, 2004... Paul Loudon, head of equity finance at Loeb Aron and non-executive chairman of Aim-newcomer BDI Mining, has described BDI as a regional, rather than a commodity-specific, play. Mr Loudon says that BDI would like to be seen as similar to...

Courts rocked by poor trading statement.
October 1, 2004... A disastrous trading statement from Courts sent shares in the retailer tumbling a further 10 per cent this week. The share price has now collapsed 80 per cent since January, and the latest bad news just reiterated that the furniture retailer...

Content to launch joint $20m fund.
October 1, 2004... Contentfilm has joined forces with investment fund Entertainment Investor to launch a $20m fund. It will target high-net-worth individuals and, if the money can be secured before the end of the year, it will allow Contentfilm to invest in up to...

P&O gets ship-shape.
October 1, 2004... Cross-channel ferry operator P&O intends to cut its ferry fleet by a quarter in an attempt to turn its loss-making business around. It intends to close four of its 13 routes, sack 1,200 workers and cut the number of ships it operates from 31 to...

Ofex turns to the market for help.
October 1, 2004... Ofex Holdings plans to tap the market for more money in a bid to survive past November. However, this may be a tough task for the trading platform. Its share price has slumped to an all-time low of 8p, while losses continue to grow - they...

Scipher calls in the receivers.
October 1, 2004... Plagued by debt and pressure from creditors, Scipher has appointed administrative receivers. In February, the technology development and licensing company said that it needed GBP5m to recapitalise the business. Having previously focused on...

Erinaceous labours after Hercules.
October 1, 2004... Fast-growing Erinaceous has launched an agreed bid for rival Hercules Property. After nearly three months of negotiation, the deal is expected to bring cost savings of at least GBP1.5m in the first year and is immediately earnings-enhancing....

Week ahead...
October 1, 2004... Monday 4 October Finals: Charteris AGMs: Mid Wynd International Investment Trust EGMs: Singer & Friedlander Economics: Chartered Institute of Purchasing & Supply UK construction sector data, Confederation of British Industry...

Vodafone keeps investors guessing.
October 1, 2004... Vodafone held an 'investor day' this week, assembling City analysts and fund managers at its Newbury headquarters for an update on the state of play. There was much there that pleased them. "I was impressed," says Robert Grindle, telecoms...

Kenmare raises record funds.
October 1, 2004... Kenmare, the Irish-based mining company with a titanium mineral sands project in Mozambique, has raised over $300m to develop its project. It's believed to be the largest fund-raising package ever put together by an ex-FTSE 250 company. ...

100 share forecasts.
October 1, 2004... Economic conditions affect share prices. Everyone would agree on this. But what conditions are most important? By how much do they affect prices? And exactly how much do they matter? Most investors and chief executives ignore these...

Cash returns on the mobile agenda.
October 1, 2004... Vodafone was not the only mobile phone operator tantalising investors with dividend prospects this week. Virgin Mobile reported that the High Court has cleared the way for a dividend payment in the current financial year. And, with mmO2 also...

BPD to offer land and property investments in Bulgaria.
October 1, 2004... Ofex hopeful Bulgarian Property Developments (BPD) plans to offer investors the opportunity to invest in the former Warsaw Pact country. Bulgaria will join the EU in 2007, so it's little surprise that foreign investors are clamouring for a...

Capital and GWR confirm merger.
October 1, 2004... Capital Radio and GWR have announced their merger, as anticipated. Capital will exchange 60.236 new shares for every 100 GWR shares. The deal will probably be referred to the Competition Commission, but regional overlap is low - only small...

More management leakage at Jarvis.
October 1, 2004... Troubled support services group Jarvis has lost yet another senior director. Kevin Hyde, chief executive since May last year, has stepped down following a period in which the beleaguered support-services group has lurched from one crisis to...

A flat year for Cadbury Schweppes.
October 1, 2004... Life lacks sweetness for Cadbury Schweppes right now. Poor summer weather in Europe held back sales of its soft drinks, including Dr Pepper and Orangina. This follows similar warnings from Coca Cola and ice-cream maker Unilever. However,...

Sweet splenda for Tate & Lyle's investors.
October 1, 2004... Shareholders in Tate & Lyle got a spoonful of sugar, as the sweeteners giant raised profit expectations for the year. Even though surging raw material costs are squeezing the staple parts of its business, its artificial sweetener, Splenda, is...

Thus finds telecoms market tough going.
October 1, 2004... Alternative telecoms operator Thus has unveiled its second profit warning in three months. The company said that profit margins are suffering due to pricing pressure and the switch from narrowband to broadband internet services. Cash profits...

VT Group loses MOD contract.
October 1, 2004... Shares in defence group VT dipped slightly after a trading statement revealed the cancellation of a major tender by the MoD. VT incurred significant bidding costs on the project - for airfield support - which it was expected to win. ...

Unit trust news: New star and gam to welcome new monies.
October 1, 2004... New Star Select Opportunities is again open to new investors. Shortly after the fund's launch in June 2002, manager Patrick Evershed became concerned that too big a portfolio would restrict his ability to make the most of opportunities in the...

Unit trust news: Baring and templeton see emerging markets promise.
October 1, 2004... Emerging markets are flavour of the month at Baring Asset Management, and chief investment officer Michael Hughes has taken overweight positions in them. Concerns over interest rates and high oil prices, he believes, have now created...

Shareholders sour over Santander.
October 1, 2004... If you're an Abbey National shareholder you now have to decide whether to accept GBP5.60 (at today's price) from Banco Santander for shares that are currently trading at GBP5.49. It's no wonder that many investors are not that excited by the...

By-pass the NHS: have your op abroad.
October 1, 2004... More and more people are turning from traditional medical insurance to 'self-pay' - funding their own treatment from savings. This, in turn, has stimulated the desire to shop around and, as a result, a small but growing number of patients are...

Unit trust news: Manager moves.
October 1, 2004... Nicholas Williams is to take over the Baring Europe Select fund. Mr Williams moves from Singer & Friedlander, where he managed its European Growth fund, which has fallen 12.5 per cent in the past five years, against an average fall of 11.6 per...

Questions & Answers.
October 1, 2004... Inheritance tax Our young daughter is an only child and, although my husband and I are in good health, we are concerned about inheritance tax as she stands to inherit all the property that her father and I own. My mother died recently, and...

Why I'm doing it for myself.
October 1, 2004... A few basic facts to start with: I'm 38 years old and I've been a bit lazy about pensions planning, for too long preferring to leave my money in managed spensions that have consistently underperformed and overcharged. And I'm not alone. My...

CLINTON CARDS (CC.).
October 1, 2004... Clinton Cards' focus on improving its product range and delivery to its shops enabled it to announce like-for-like sales growth of 2.2 per cent at the interim stage. And in the seven weeks since the period-end, underlying sales are up 2.6 per...

RC.
October 1, 2004... Aim. RC continued to invest in preparation for expansion. It is now concentrating on growing its global market, most likely via acquisition.

MANCHESTER UNITED (MNU).
October 1, 2004... Will he, won't he? Eighteen months after he began accumulating his 19.2 per cent stake in Manchester United, Malcolm Glazer is still keeping investors guessing about his intentions. Having dampened speculation with a lukewarm statement in...

SIRIUS FINANCIAL SOLUTIONS.
October 1, 2004... Aim. Consolidation in the insurance-broking industry should provide opportunities for Sirius. Although its outlook is cautious, the current year has started well.

VISONIC.
October 1, 2004... Main market. Shares in Visonic slumped on these results as it warned of lower-than-expected sales in the summer. Net cash and deposits are $15.8m.

HC SLINGSBY.
October 1, 2004... Main market. Orders have remained steady at the core business, while the Slingsby Mail Order subsidiary has made a promising start since trading commenced in Ireland in March.

WORLDSEC.
October 1, 2004... Main market. Over recent months, Worldsec has returned $1.15 a share to its investors. The remaining assets are likely to be liquidated over the next six months.

CITYBLOCK.
October 1, 2004... Aim. Next month, Cityblock will open its second development in Lancaster. It has also launched a student privilege card, which offers discounts.

NETCALL.
October 1, 2004... Aim. Sales picked up substantially in the second half. Netcall's market reach has been extended through deals with BT Global Services and other international partners.

ZINCOX.
October 1, 2004... Aim. ZincOx has now received $7.5m from the sale of its Shiarmerden deposit in central Asia. It's now concentrating on its waste processing technology, and on its Jalabi project.

PM.
October 1, 2004... Aim. These results reveal impressive performance from PM, driven by strong demand both in the UK and Ireland.

WHATMAN (WHM).
October 1, 2004... "Whatman is back," declares chief executive Bob Thian, who has been working hard to make the company profitable again. It supplies separation technology to the pharmaceutical industry, as well as its FTA DNA collection technology to the US and...

PAN ANDEAN.
October 1, 2004... Aim. Operations in both the US and Bolivia were profitable, and drilling also produced positive results. Results from the $7m El Dorado well in Columbia are due shortly.

POLARON.
October 1, 2004... Aim. Polaron is starting to see the benefits of increased investment in its nanotechnology division, while its controls systems, components and software republishing arms continue to grow.

QUAYLE MUNRO.
October 1, 2004... Aim. The profit includes an accounting loss of GBP528,000 from the disposal of a shareholding in Morris Group. If this is added back, profits totalled GBP1.76m - 61 per cent ahead of last year.

EUROVESTECH.
October 1, 2004... Aim. Eurovestech acquired 100 per cent of listed company Knowledge Support Systems in June 2003, and says it will be strongly cash-generative in 2004.

RETAIL STORES Retail and fabric printing.
October 1, 2004... Aim. Some progress has been made with the transformation of Liberty, bringing back its old sense of style, but a lot of work remains to be done. New board appointments have been made.

TRIPLE PLATE JUNCTION.
October 1, 2004... Aim. Triple is focusing on establishing a balanced portfolio of exploration interests in south-east Asia. It has secured eight exploration licences in Papua New Guinea.

BULLION RESOURCES.
October 1, 2004... Aim. Gold miner

ANGELA FLOWERS GALLERY.
October 1, 2004... Ofex.

EURASIA MINING.
October 1, 2004... Aim. Mining in Russia and South Africa

EUROPE STEEL.
October 1, 2004... Ofex. Trading in steel products

NESTOR HEALTHCARE (NSR).
October 1, 2004... Nestor has been forced to recognise that its reading of a potential outsourcing opportunity within the NHS hasn't worked out as it anticipated. The company spent heavily preparing its Primecare primary-care division to meet the demand expected...

DDD.
October 1, 2004... Aim. 3-D display market

FIDELITY SYSTEMS.
October 1, 2004... Ofex. Software developer and hardware distributor

FLIGHT STORE.
October 1, 2004... Aim. Multi-channel digital media

ILLUMINATOR.
October 1, 2004... Aim. Cash shell

IS SOLUTIONS.
October 1, 2004... Main market. Internet services

ITRAIN.
October 1, 2004... Aim. Training software

LAPP PLATS.
October 1, 2004... Ofex. Platinum and nickel exploration

MERCURY RECYCLING.
October 1, 2004... Aim. Recycling mercury bearing waste

METRODOME.
October 1, 2004... Aim. Films, videos and DVDs

MICROCAP EQUITIES.
October 1, 2004... Aim. Investment company

MONKTON.
October 1, 2004... Ofex. Renewable electricity supplier

NMT.
October 1, 2004... Aim. Drug delivery solutions

PENNANT.
October 1, 2004... Aim. Technical sol'ns to the defence/industrial sectors

SPRING (SRG).
October 1, 2004... The IT cycle has clearly turned. More companies are spending on upgrading their IT infrastructure, and that's great news for Spring, which supplies IT contractors. Its organic turnover growth of around 40 per cent is much better than has been...

PLAYGOLF.
October 1, 2004... Aim. Urban golf centres

RADAMEC.
October 1, 2004... Aim. Control equipment for boats, exhaust monitors

ROSS.
October 1, 2004... Main market. Electronic products

SIGMA TECHNOLOGY.
October 1, 2004... Aim. Investment manager and adviser

QUIKTRAK NETWORK.
October 1, 2004... Aim. Vehicle tracking devices

SMALLBONE.
October 1, 2004... Aim. Household furniture and ceramics