Predator Oil & Gas (PRD), a Jersey based Oil and Gas Company with near-term drilling operations focussed on Morocco and Trinidad, announce that it has conditionally placed 50 million new ordinary shares of no par value in the Company at a placing price of 4 pence to raise £2 million. PRD said MOU-5 and evaluating the large Titanosaurus structure is the immediate next objective and plans are still right on track to commence drilling MOU-5 as previously announced.
Comment: With the denouement of MOU-5 imminent, PRD gives new investors a chance to get in at the ground floor. What will be interesting to see in coming weeks is how much of a share price snap back the run up to MOU-5 and the big reveal will deliver.
hVIVO (HVO), an early-stage CRO and the world leader in human challenge clinical trials, notes the announcement by Shionogi & Co., Ltd., reporting positive results from a Phase 2a RSV human challenge trial conducted by hVIVO. The trial demonstrated a significant reduction in viral load for Shionogi’s investigational oral RSV antiviral candidate, S-337395.
Comment: Given the recent strong newsflow from HVO, including today’s one would consider that the market would have at least enough evidence to ensure the shares are on the right side of 20p, as opposed to close to 30p as recently as November.
GSK (GSK) reported growth in annual revenue, but a decline in profit, with its bottom line hurt by a Zantac litigation settlement charge. The pharmaceutical firm upped its dividend and announced a GBP2 billion share buyback programme to be implemented over the next 18 months. GSK said pretax profit in 2024 fell 43% to GBP3.48 billion from GBP6.06 billion a year prior, though revenue increased 3.5% to GBP31.38 billion from GBP30.33 billion. (Alliance News).
Comment: The running to stand still profile of GSK’s revenue versus profits relationship has taken its toll on the share price since the spring. But now with the stock at £14 rather than £18, one could argue this sinking feeling has already been factored into the share price, especially given the share buyback.
SSE (SSE) hailed a “good operational performance” during its third-quarter. For the full-year to March 31, it expects adjusted earnings per share expected to be between 154 and 163 pence, which ranges from a 2.8% fall to a 2.8% rise from 158.5p in financial 2024. Its third-quarter was characterised by a “good operational performance against variable weather conditions”. “Generation output from SSE Renewables over the first nine months was 26% higher than the same period in prior year, reflecting the impact from capacity additions and weather conditions. (Alliance News)
Comment: SSE remains a fully paid up member of the UK utilities cartel, which has managed to ensure Brits have been ripped off for at least the past 30 years. That said, it is interesting that net zero mumbo jumbo – renewables, are making an increasing contribution.
Oxford BioDynamics, (OBD), a biotechnology company developing precision medicine tests based on the EpiSwitch® 3D genomics platform, announced the publication of compelling results involving OBD’s technology in a multi-centre study using blood to detect colorectal cancer (CRC), including early stage, and non-cancerous polyps with high accuracy.
Comment: OBD continues to bump along the bottom as far as the share price / recent placing price is concerned, with news such as today’s proving efficacy certainly helping the cause. But the big stock move to the upside needs to be on partnership / JV news with an international player.
SulNOx (AQSE:SNOX), the greentech innovation company helping industry reduce emissions, lower fuel costs and meet sustainability targets, is pleased to announce its third quarter trading update. Q3 2024/5 Trading Update (1 October to 31 December). Sales of £207.7k, an increase of 110.5% (Q3 2023/4: £98.6k). Sales fulfilled and booked in the current quarter to date of £88.4k and confirmed further sales of £63.9k, totalling £152.3k for the quarter. Unaudited cash balance of £ 2.5 million as at 31 December 2024.
Comment: A hockey stick jump in numbers, although obviously we are not talking big figures. Nevertheless, the market appears to have latched onto the premise of the company, a point witnessed by last year’s near 2x share price jump.
Arrow Exploration Corp. (AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, provide an update on the operational activity at the Alberta Llanos field on the Tapir Block in the Llanos Basin of Colombia where Arrow holds a 50 percent beneficial interest. AXL said initial production from the AB-3 well is an exciting event for Arrow, reaffirming the horizontal development potential of the Alberta Llanos field. In addition to the thick pay zone (56 feet) encountered in the Ubaque formation, additional pay zones currently behind pipe, the C7, and Guadalupe, provide further opportunities for production and reserves increases.
Comment: Presumably the market will continue to treat AXL harshly, despite the operational progress which it continues to deliver, such as the company’s strongest ever quarter as reported in the autumn.
Grainger (GRI), the UK’s largest listed provider of private rental homes provided an update on trading for the four months to the end of January 2025. Grainger said it continues to perform strongly, delivering 15% growth in total net rental income on the same period last year, and up from 14% growth reported at FY24.
Comment: Even though providing private rental homes should be like falling off a log, due to the demand alone, it can be seen from the sinking share price of GRI, that even corporates are struggling amongst all the red tape and cost.
Made Tech Group (MTEC), a provider of digital, data, and technology services to the UK public sector, announced its unaudited half year results for the six months ended 30 November 2024. Adjusted EBITDA up 29% to £1.8m (H1 FY24: £1.4m) with Adjusted EBITDA margin increasing to 8.2% (H1 FY24: 7.3%); FY25 Adjusted EBITDA now expected to be ahead of recently upgraded market expectations. Robust balance sheet with £9.1m of net cash (FY24: £7.6m).
Comment: MTEC has been a clear technical turnaround situation since April, with the favoured bear trap island reversal in the low teens, the company has proven that it is a solid fundamental turnaround play, helped along by a brimming balance sheet.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
