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10:30GMT 19Mar2010-Hydrodec down on funding concerns
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Shares in Hydrodec Group Plc fall 10 percent after the renewable oil firm says it is currently has only four to six weeks of working capital and is in talks with a number of shareholders to secure further funding.
"We believe a new equity raise would be dilutive to earnings and further devalue the share," Piper Jaffray analyst Alastair Bishop says in a note.
In December, the company raised about 2 million pounds through a placing of shares.
"A mix of tight industry margins, execution risk and significant potential overhang from its convertible loan note lead us to remain cautious on the stock," says Bishop, who maintains an "underweight" rating on the shares.
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09:42GMT 19Mar2010-Autonomy buoyed by broker comment
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Shares in Autonomy Corp. take on 1.6 percent as Panmure Gordon repeats its "buy" rating on the search software firm, noting two "very pleasingly" recent announcements from the group.
"Firstly, Autonomy lives up to its promise to investors with the appointment of two new NEDs (non-executive directors) of which one has a finance background," Panmure Gordon says in a note.
"In addition, Autonomy keeps up its impressive rate of technology insertion by debuting a new multi-channel analytics application we have long liked this area as we believe that the front office is a key revival (area) as the economy recovers," the broker adds.
Panmure Gordon points out that Autonomy shares have been buoyed recently by takeover stories but more importantly it feels the firm is continuing to make the right strategic and operational moves.
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09:31GMT 19Mar2010-ICAP up on talk of cash equities sale
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Shares in ICAP add 1.3 percent lifted by talk the inter-dealer broker might be close to finding a buyer for its cash equities business, traders say.
ICAP confirmed on February 15 that it was conducting a broad-ranging strategic review of some cash equities business.
However, broker Execution-Noble thinks that finding a buyer who pays money to ICAP is going to be extremely difficult because the cash equities business is likely to end this year with a loss of around 18 million pounds.
Execution Noble notes that KBC, which is a more profitable business, has been up for sale for the past 12 months but has not succeeded to find buyers, while Pali Capital, a broker that had revenues of $250 million at its peak, has been forced to shut down its operations as it failed to find a buyer.
"We think the most likely solution to ICAP's cash equities business would be an orderly wind down to cut losses. It's worth noting that given the uncertainty ICAP has started seeing departures of its star performers," the broker says repeating its "hold" rating on ICAP.
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09:21GMT 19Mar2010-Booker gains, Evolution upgrades
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Shares in Booker, Britain's largest cash-and-carry wholesaler, top the FTSE 250 leader board, adding 4.1 percent, after Evolution Securities upgrades its rating on the firm to "buy" from "add", saying it is a low-risk growth story.
"Booker is funding growth from cash flow -- unusual for a food retailer -- and should be debt-free by 2012," Evolution says in a note.
"Value-added, bolt-on acquisitions look likely and, along with the low-risk venture into India, signal excellent growth potential," says the broker.
Evolution lifts its 2010 earnings per share estimate by 3 percent, and raises its target price to 50 pence from 44.
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09:04GMT 19Mar2010-T Clarke gains on D&S Engineering buy
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Shares of T Clarke rise 7.7 percent to a 52-week high, after the British electrical contractor acquired D&S Engineering, a privately held facilities management business, for 11.6 million pounds.
Arbuthnot says the acquisition gives T Clarke cross-selling opportunities and raises its price target on the stock to 190 pence from 160 pence.
"The dividend yield represents a key investment attraction, underpinned by the group's good cash generation and robust balance sheet," Arbuthnot analyst David Brockton writes in a note.
Panmure Gordon says: "(T Clarke's) specialisation in electrical contracting gives it core skills that would also be an attractive bolt-on for a larger player."
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08:52GMT 19Mar2010-Lloyds jumps after trading update
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Shares in Lloyds Banking Group gain 8.7 percent, topping the FTSE 100 leaders board and heading a strong banking sector as the firm issues an unexpected, upbeat trading statement.
The bailed out British lender says it will return to profitability in 2010 after two years of heavy losses, helped by lower than expected bad debts and tight cost controls.
"We had factored in modest outperformance versus guidance in our 2010 forecasts, but tone and timing suggests beat," says Shore Capital in note.
The broker says overall it is an encouraging update from Lloyds and it would expect to nudge up forecasts to reflect primarily stronger income growth and trimmed impairment expectations.
Shore Capital says the return to profitability would represent an important milestone in the Lloyds' recovery story, but the broker continues to believe better value lies elsewhere in the sector, hence its "hold" rating on Lloyds.
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08:49GMT 19Mar2010-Cluff Gold gains on upbeat production update
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Shares in Cluff Gold Plc gain more than 5 percent after the West Africa-focused gold miner says production at its Kalsaka and Angovia mines topped its own forecast in the first two months of 2010 and it was confident of continuing the strong performance throughout the year.
"The company has announced that just under 19,300 ounces of gold were produced during January and February, putting CLF comfortably on track for its annual production target of 100,000 ounces," analyst Asa Bridle at Seymour Pierce says in a note.
The broker raises its target price to 137 pence from 90 pence and reiterates its "buy" rating.
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08:40GMT 19Mar2010-UK small caps gain 0.1 pct early
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The FTSE Small Cap index gains 0.1 percent in early trade, while the blue chips climb 0.6 percent, and the midcaps are 0.7 percent firmer.
T Clarke tops the small cap leader board, rising 7.7 percent to hit an 18-month high, as the electrical contractor buys D&S Engineering, a privately-owned facilities management business, and posts full-year results.
Arbuthnot Securities raises its earnings forecasts for T Clarke to reflect the complementary acquisition, and repeats its "buy" rating, saying in a note that key figures in the firm's results statement are ahead of its expectation.
Cluff Gold adds 5.2 percent after saying production at its Kalsaka and Angovia mines topped its own forecast in the first two months of 2010 and it is confident of continuing the strong performance throughout the year.
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