Share Talk – Steve Shares 6th May
Welcome to Steve Shares. This publication is an interactive weekly update on what’s happening over social media and the trending stocks that have made the news this week. I highlight and comment on the coming news and events in connection with the trending stocks. I also provide a round up of Share Talk’s key company interviews over the last week.
If you think that a certain share or a key news item should be reported on be in the next edition, let me know by contacting me my details are at the bottom of the page…
Last weeks Steve Shares was well followed with several thoughts surrounding FCR being voiced. There seems to be a lot of ambiguity surrounding the funding requirements going forward, as always time will tell but the majority of people agreed that the projects in Spain and Portugal should provide some longer term returns all being well. As always thoughts and comments are welcomed, and thanks to those that messaged.
This week I covered Rockhopper (RKH) and N4 Pharma (N4P). The write ups are at the end of this publication as always, but here is the link for the company’s covered via TipTv: http://www.share-talk.com/share-news/stock-watch-rockhopper-exploration-plc-and-n4-pharma-plc-share-talk/
This weeks stocks…
N4 Pharma (N4P)
A welcome return to the market for holders of the shares under the former name of Onizma (ONZ) and now with a new forward looking mission within the team and additional funding raised. The placing at 7p was immediately underwater with the longer term holders selling out as and when their brokers allowed them to. In this day and age a simple change of name with the broker and a transference of the shares should be a simple task and this left many holders annoyed. Should there be a time period applied for this to happen by the exchanges? However many new holders saw the potential in the company and bought in. What are your thoughts around this deal and the business going forward?
Covered by Steve Shares before the offer at the end of last year, controversy has followed the share. Under review by the regulators in Spain last week the news announced was that Spain’s National Markets & Competition Commission had terminated its review of the deal. This weeks news was not met well by shareholders and the share price dropped as the German Federal Ministry of Economic Affairs and Energy had issued a formal notification to Hytera. They will initiate a review of the acquisition on public policy and or national security grounds. Sepura shareholders approved the GBP74.0 million takeover by Chinese radio transceivers and radio systems maker Hytera in February after a deal was first agreed in December 2016
However, Sepura said on Friday that, Sepura and Hytera said they were in the process of reviewing any potential obstacle to the completion of the acquisition, and will be speaking with the German ministry. Is this a barrier to the deal or is it a chance to trade this stock? Thoughts and comments are welcomed.
SDX Energy (SDX)
Followers of the stock have been rewarded with a flurry of news in relation to the share firstly they have a gas discovery as the seismic data had shown, however many new holder joined after this news in the hope of hitting oil at the deeper target. The title of ‘Completion of drilling campaign at successful SD-1X well’ had holders hopes up of an oil discovery however they announced that Hydrocarbons were present in the deeper intervals, which indicates a working petroleum system within this section. However, there was not a sufficient amount of hydrocarbons present to justify completing this interval. A detailed testing program will be undertaken after the rig has been decommissioned which will show the results in due course, what are your hopes of the find? What are the longer term prospects of finding oil or gas in the region?
Supermarkets, Sainsbury’s (SBRY) Morrisons (MRW)
A mixed bag this week for share holders in the supermarkets this week, although looking buoyant with additional sales the underlying issues and struggles within the sector are now coming to fruition. Within the shopping markets sector many consumers look at the likes of Lidl and Aldi for their shopping needs, the need to diversify or change was understood over the last few years and the change in the sector has not yet taken full effect.
Sainsbury’s added the Argos brand into their holdings last year to help stabilise the company’s income. This has been met with a profit of £77mn from that arm. However overall profits of £581M show the company’s third year of decline in their profit margin although slight. They warned a challenging market meant it could take up to five years to deliver sustainable profit growth, which wasn’t met well by shareholders.
Morrisons, Britain’s fourth-biggest supermarket chain, highlighted group like-for-like sales rose 3.4%. It beats forecasts and this report is a sixth consecutive quarter of underlying sales growth. A former executive of Tesco joined Morrisons in 2015 and was tasked with reviving the group after sales losses down to the discounted chains, could this be his effect coming to fruition? The profits of £371M are still far below the heights of success where they will made £935M several years ago.
Are these at levels where investors would like to hold? Are the likes of Tesco a better bet in this sector? It looks very risky shorter term from my point of view, however as always these stocks are longer term holds normally. What are your thoughts and comments?
What company’s do you consider undervalued and news items that the market has missed…? Let me know and I will announce via the next issue of Steve Shares…
My thought of the week
Elections – worldwide news is now headlining elections and the media circus that normally ensues and this week has been no different. With local elections in the UK taking a back burner to the French this week is there a lack of interest in politics on the home front? Is politics merely another set of rules and regulations that share traders have to adhere to and merely thoughts surrounding that? Are elections now merely a chance of a trade?
Share Talk round up – Interviews and updates
Share Talk Presents an interview with Nigel Theobald, CEO of N4 Pharma Plc: http://www.share-talk.com/share-news/n4-pharma-plc-aimn4p-admission-to-aiminterview-with-ceo/
Share Talk Presents an interview with Cameron Parry, CEO of Lionsgold Ltd: http://www.share-talk.com/share-news/cameron-parry-ceo-lionsgold-ltd-aimlion-interview-re-fintech-gold-update/
Share Talk Presents an interview with Andrew Bell, Exec Chairman of Regency Mines Plc: http://www.share-talk.com/share-news/regency-mines-plc-aimrgm-interview-with-andrew-bell-chairman/
Share Talk Presents an interview with Matthew C Idiens, CEO of Rose Petroleum Plc: http://www.share-talk.com/share-news/matthew-c-idiens-ceo-rose-petroleum-plc-aimrose-interview/
Share Talk has presented many other useful news articles which can be found here http://www.share-talk.com/share-news
The Biz Lounge
Taking the stress out of stocks… Mark Johnson returns in his regular video features outlining what is happening on the FTSE main markets. His ‘big boss’ features this week include Crozier, Blair, Le Pen and Macron.
TipTv Write ups
Rockhopper Exploration plc (RKH)
With the share price has seemingly stabilised just above the 20p point could now be a time to start investing? History: as many long term traders know was based around the North Falkland oil Basin Rockhopper now has a 40% working interest after many deals and the next phase is to bring online the commercial aspect of production and selling of the oil. With recoverable resources of approximately 220 mmbbls with Field production estimates of 75,000 barrels per day and a Field life 20 years the longer term potential is there for all to see. Risk in the shorter term remain even after significant improvements in project economics the recovery costs are now estimated at US$45 per bbl. With work anticipated to take between 15 and 18 months to complete for the phase 1, production should be in 2020 or so. In the meantime though they have projects in country’s surrounding the Mediterranean sea area. Seemingly missed by the market they have recently started drilling at its Abu Sennan project in Egypt. The work programme is for this exploration drill and then a development well, so again a lower risk type drill. On completion of the exploration well, the rig will move directly to Al Jahraa-9. With both drills the hope is to add to reserves and put the wells into immediate production. Also they will do workover’s on two production wells so this could provide some upside in the short term and also longer term gains if the price of oil stabilises towards production. Rockhopper’s adjusted year-end cash balance is circa $60-$65 million. So there should be no fund raising needs in the shorter term. So potentially only upside from these levels? Time will show the potential here.
N4 Pharma (N4P)
It has been a difficult few months for holders of Onzima’s shares and this week saw the return of the company now called N4 Pharma (N4P), a pharmaceutical based company which changes existing medicines and vaccines to improve their efficiency and performance for the user.
They raised £1.5 million during the re-listing process will be used to fund development of additional patent applications for various medicines, and to primarily undertake clinical trials for N4 Pharma’s reformulation of sildenafil, more commonly known as Viagra where they hope to allow for a faster acting formula. Initial trials are less risky then the normally known trials in the fact that the base of the drug has already passed the initial trials so they need only do a small trial and feedback from a small amount of users for the re-formulation of the drug. If they can successfully gain any type of foothold in this market they could gain a part of a market which had sales of $4 billion annually. There are big hopes for the company over the longer term. They have other less known about products for blood pressure. And one used for anti-sickness in post operation and with cancer treatment patients. These drugs are widely used and needed in the markets and they identify the end users needs. Spending smaller amounts of money on these drugs to change them to make them better for the end users seems a frugal usage as a business model!
In effect they can take many drugs that have come out of their protected status and identifying better needs towards the end user they then take the products and improve these, then put their own protection status on them.
Let me know what should be in next weeks article and I will report on the shares that matter to you…
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned