Diageo (DGE) ruled out a sale of the Guinness brand and its stake in Moet Hennessy. “We have no intention to sell either,” the brewer said, after noting press speculation. Bloomberg News on Friday reported that Diageo was mulling a sale of Guinness, as well as its 34% stake in Moet Hennessy, the drinks division of luxury firm LVMH Moet Hennessy Louis Vuitton.
Comment: Whoops, someone leaked the Guinness sale story while Diageo was in discussions, so it has had to deny it. Let’s see if this interpretation is correct, and if Guinness could fetch close to £10bn rather than the mooted £8bn off the back of a bidding war. By the way, brilliant PR.
hVIVO (HVO), a specialist contract research organisation (CRO) and world leader in testing infectious and respiratory disease products using human challenge clinical trials, announced that it has signed a letter of intent (LOI) with ILiAD Biotechnologies, LLC (ILiAD), to conduct a pivotal Phase 3 human challenge trial for its lead Bordetella pertussis vaccine candidate, BPZE1. ILiAD is a late-stage biotech development company, which has raised over $100m to date, and is dedicated to the prevention of whooping cough, a life-threatening disease caused by Bordetella pertussis. hVIVO and ILiAD are currently working to finalise the definitive agreement, a further announcement will be made in due course.
Comment: HVO’s share price is still very much at odds with the newflow of late, something which may be corrected over the next few weeks. The stock was knocking on the door of 30p as recently as November, and the LOI with ILiAD Biotechnologies merits a thumbs up from the market.
Genel Energy (GENL) issues the following trading and operations update in advance of the Company’s full-year 2024 results, which are scheduled for release on 18 March 2025. GENL said we start 2025 with a business that has all the building blocks necessary to grow and become more successful. GENL said: it has a strong balance sheet, our two producing fields within the Tawke PSC form a world class asset that delivers significant cash generation, even when only selling at heavily discounted domestic prices. Genel has a compact, but highly skilled and motivated work force, dedicated to delivery performance, execution of a growth strategy and pursuit of value accretive acquisitions that will geographically diversify us into reliable and predictable jurisdictions. We continue to work with peers and our host government to push for the conditions necessary to enable testing of any new mechanism for exports. We note the recent discussions of a revised budget law in Iraq that would provide the framework for a mechanism to fund the payment of IOCs by the KRG on resumption of exports.
Comment: A surprisingly insistent and bullish update from GENL, despite the obvious risk associated with Iraq and the jurisdiction it finds itself. The market typically over prices in risk in such situations, a point underlined by the way that the shares are near 10 year lows.
Sealand Capital Galaxy (SCGL), an IT, Social Media & Technology company focused on consolidating compelling opportunities in the global marketplace, is pleased to announce that the Company has formalised terms with EVOO AI plc to create a proprietary platform, named “SEA-VOO AI ASIA” or “SEA-VOO”. This agreement will give Sealand’s wholly-owned operating subsidiary SCG Group Limited (a company operating distribution agreements with international brands seeking access to the APAC market) access and exclusive distribution rights to EVOO’s AI technology platform.
Comment: SCGL has been one of the best ever charting calls here on Zaks Traders Café, and finesses this with decent newsflow such as today’s. This should continue to consolidate the share price, and upset the naysayers.
Ondine Biomedical Inc. (OBI), a Canadian life sciences company developing light-activated antimicrobial treatments, announced that hInsight-NX, LLC, a subsidiary of HCA Healthcare, Inc., a leading healthcare provider in the United States, has committed to a US$4 million equity investment in the Company. The proceeds from this investment will be used to support the Company’s strategic objectives, including advancing key initiatives, to deliver long-term value. With the addition of this new investment, the Company expects its cash runway to extend into early Q4 2025.
Comment: Being funded for most of 2025, as its rollout of Steriwave continues, is a big win for OBI. This is particularly the case given that that latest investment comes from a company of the status of HCA in the medical field.
UK Oil & Gas (UKOG) announce that DEEP.KBB GmbH, one of Europe’s leading salt cavern design and underground energy storage engineering groups, has completed preliminary project design for the Company’s proposed new underground hydrogen storage facility located west of Weymouth in Dorset. The Design, prepared for the Company’s wholly owned UK Energy Storage subsidiary, confirms the suitability of the Site for a material scale hydrogen storage project, comprising 24 salt caverns at a depth of ~1330 m below surface. The project is fully in keeping with the Government’s Clean Power 2030 ambitions.
Comment: It may be the case that UKOG has to change its name from its old nasty fossil fuel associations. This is especially the case as everyone and their mother seems to be going into the energy storage space, even though at this stage, the cost, the demand and the lay of the land in terms of politics make the area rather more volatile than many are factoring in at the moment.
Tekmar Group (TGP), a provider of products and solutions for the global offshore energy market, is pleased to announce a significant new contract award with a total value in the region of £5 million for a UK-based offshore wind farm project. TGP said it was delighted to be partnering with this client for the first time on a project of this size as part of their Engineering Procurement, Construction and Installation scope of supply. Tekmar has been selected because of our integrated offering, including our early-stage engineering support, our customer focus and our track record which is unrivalled in the industry.
Comment: Someone has deep pockets for wind, and perhaps rightly so given Ed Milliband’s swivel-eyed backing of Net Zero. Hopefully, sustainable energy will eventually bring down prices for pensioners, and other non-working people.
Abingdon Health (ABDX), an international developer, manufacturer and distributor of high quality and effective rapid tests, announced that it has been awarded approximately £800,000 as part of total project funding of EUR 5m to develop, and transfer to manufacture, a new intervention for malaria elimination as part of a distinguished group of Institut Pasteur. The funding to Abingdon Health, which will be provided by UK Research and Innovation (UKRI) under the ‘Horizon Europe Guarantee’ scheme.”
Comment: There is nothing better on a Monday morning that for a small cap company to get in some non-dilutive cash from a Quango / Government gravy train. Malaria is a good cause too…
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.
