The FTSE 100 closed higher on Friday gaining an encouraging 1.2%. The top performer was NatWest, which rose by 7%, followed by Anglo American with a 5.1% increase.
On the opposite end of the blue-chip index, warehouse owner Segro fell by 1.7%, and Rightmove closed down 1.4%. In contrast, the FTSE 250 climbed by 2.3%. Power generation company Drax led the gains, up 14%, with defence firm Babcock following at an 8.7% increase.
Petrofac Ltd (LON: PFC) pulled a rabbit out of the hat at the close on Friday catching a few out including the market makers with a company update released with less than half an hour to market close with the sp sitting at c12.70p. Petrofac announces that it has reached an alternative agreement with a key customer with respect to the performance guarantee requirements under that contract. This was the started gun fired with the share price spiking to 22.00p +67.43% at the close with all eyes on Monday opening.
“Bulletin Board Heroes Special: Pennpetro” by Zak Mir
Zak Mir provides a chart analysis of Pennpetro Energy (LON: PPP) following its recent 30-year royalty deal in Texas. The stock has risen significantly, from around 5 pence to over 10 pence. Key points include: Initial targets were at 2.4p, 3.4p, 4.4p, and 7p. PPP has exceeded these targets, reaching over 10p on Friday, and is looking for at least 15p as long as the stock remains above the 7p support level
The gap higher on Friday at around 7.25 pence is now a potential support level.
- Technical Indicators:
- Bullish divergence was noted before the rise, with lower lows on price but higher RSI.
- The consolidation between 2.3 pence and 3.4 pence indicated a mid-move consolidation, exceeding expectations.
- The rising 50 and 200-day moving averages and an upcoming golden cross (expected in about a week) are strong bullish signals.
Zak Mir concludes with a positive outlook for Pennpetro, looking for at least 15 pence as long as the stock remains above the 7 pence support level.
A brief announcement significantly boosted SkinBioTherapeutics PLC (LON: SBTX), the life sciences group specializing in skin health, resulting in a 36% increase in its stock. This positive news also had a beneficial impact on OptiBiotix Health PLC (LON: OPTI), the gut health company holding a 25% stake in SBTX, which saw its stock rise by 27%.
Shore Capital now holds a 12.8% stake in UK Oil and Gas (LON: UKOG), following the repayment of the convertible loan facility provided by RiverFort Global Opportunities and YA II PN. This development led to a 69.4% increase in the share price, which rose to 0.0305p.
ATOME PLC (LON: ATOM) saw a 41% increase in its share price following an agreement to sell all the fertilizer produced from its Paraguay project to the Norwegian crop nutrition group Yara International. This deal offers commercial reassurance to potential financiers of ATOME’s project.
Thalassa Holdings (LON: THAL), fully listed, has acquired a 9.94% stake in Surgical Innovations (LON: SUN), leading to a 23.1% rise in the share price to 0.8p, valuing the surgical instruments manufacturer at £7.5 million. Earlier this year, Thalassa’s chairman, Duncan Soukup, made initial restitution payments due to a loss on an investment in Tappit Technologies, with up to £1.5 million more to be paid. This indicates Thalassa has cash available for investment. At the end of 2023, Thalassa had a book value of 116p/share, while the current share price is 26.5p.
Pathfinder Minerals has returned from suspension as Rome Resources (LON: RMR) following the acquisition of a tin project explorer and developer focused on the Democratic Republic of Congo, along with raising £4 million at 0.3p/share. The share price has improved by 18.2% to 0.325p.
Octopus Investments has recently increased its stake in hVIVO (LON: HVO), the operator of the world’s largest commercial human challenge trial unit. The investment group now holds 7.61% of hVIVO’s equity, having raised its stake by 72% to a total of 51,804,020 shares.
Last Tuesday, 49,372,402 shares were traded in the market, which is over twenty times the daily average. This significant increase in holdings from 20,175,000 shares on July 4th is a strong indicator for investors to watch closely.
Following the recent Capital Markets Day and Trading Update, analysts Stuart Harris and Chris Donellan at Cavendish Capital Markets have become more optimistic about the group’s potential to meet its revenue targets.
For the current year ending in December, they anticipate revenues increasing to £62.0m (from £56.0m), with adjusted pre-tax profits reaching £12.2m (up from £11.9m) and earnings slightly rising to 1.4p (from 1.3p) per share.
For the next year, they project revenues of £67.4m, profits of £14.0m, and earnings of 1.6p per share.
The brokers have set a Price Objective of 42p for the company’s shares.
Following the sale of its energy management business, eEnergy (LON: EAAS) is now able to focus on its energy services sector, with sufficient funding to capitalize on growth opportunities. Full-year revenues are projected to be between £25m and £26m. Although there will be some exceptional charges related to the disposal and a potential underlying loss this year, the company is expected to rebound with a pre-tax profit of £2.2m next year. The share price has risen by 4.87% to 5.6p.
Onto the fallers
Aptamer Group PLC (LON: APTA), the research and diagnostics specialist, dampened investor enthusiasm by initiating a £2.8 million fundraiser, offering shares at a steep discount, which resulted in a two-thirds reduction in its valuation.
Versarien PLC (LON: VRS), the advanced materials company, saw its stock drop by 43% after raising £500,000 from the market. These companies were among five smaller firms that hurried to secure funding ahead of the annual summer hiatus.
A shift in marketing strategy for its B2C business has not yielded the expected results for gambling firm Webis (LON: WEB). Additionally, bad weather led to the cancellation of race meetings in the US, resulting in a second-half loss projected to be similar to the interim loss of $541,000. Consequently, the share price plummeted by 42.9% to 0.8p, its lowest level since March 2020.
Brighton Pier Group (LON: PIER) has been adversely affected by poor weather, leading to a 29% decline in footfall on Brighton Pier. Consequently, this year’s revenues will be lower than anticipated. However, the company’s other three leisure businesses are performing in line with expectations. Cavendish forecasts a 2024 post-tax loss of £700,000. As a result, the share price dropped 13.9% to 34p.
Power Metal Resources (LON: POW) announced that the due diligence period for its uranium joint venture with ACAM has been extended until August 23rd due to outstanding legal processes. The share price fell by 2.78% to 17.5p.
Echo Energy (LON: ECHO) has received a conversion notice for £40,000 of its conditional convertible loan note. The conversion price was set at 0.00288p, resulting in the issuance of approximately 6% of the enlarged share capital. This led to a 5.71% decline in the share price to 0.0033p.
