Small cap movers – interesting stories from the junior market over the past week.

Red Emperor shares seesaw on news from Alaskan well, but it’s still not clear what exactly is in the ground.

A look back at some of the more interesting stories from the junior market over the past week.

Shares in oil minnow Red Emperor Resources (LON: RMP) have been on a bit of a rollercoaster over the last seven days as a cocktail of news from the Winx-1 exploration well in Alaska has sent them both plunging and soaring.

The first swing came last Friday after the firm reported that evidence of oil, referred to as ‘shows’, encountered during drilling at the primary Nanushuk target was “at the lower end” of the range needed to be commercially viable, which sent the stock tumbling nearly 65pc, or 2.6p, to 1.4p.

However, there wasn’t actually any definitive data or conclusion given as to whether the ‘discovery’ was or wasn’t viable.

Then, on Monday, Red Emperor reported that additional ‘shows’ were observed in the well, including another in the primary zone and also in deeper zones, which sent the shares back up 152pc, or 2.2p, to 3.6p.

The objective facts remain the same, however, in that no definitive data or conclusion was given as to whether the ‘discovery’ was or wasn’t commercial. Instead, the explorer commented that the latest findings were ‘encouraging’.

Another statement followed later in the week, relaying information that became available following the completion of drilling on Monday. But as with Friday and Monday, no definitive information was given but that didn’t stop the shares jumping again to finish the week around 303pc, or 4.3p, higher at 5.8p.

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Small cap movers from the junior market over the past week

The next investor update out of Alaska will likely be pivotal, should it give some proof in one direction or the other. Expect further volatility, whichever way the definitive well results land.

Red Emperor’s partner, 88 Energy Limited (LON:88E), followed the same down-up trajectory, eventually ending 32pc, or 0.3p higher, at 1.2p while another partner firm, Pantheon Resources Plc (LON: PANR), was up 25pc, or 5.2p, at 26.1p.

Bicycle maker Tandem Group PLC (LON: TND) was also putting its foot on the pedals, with shares rising 4.9pc, or 7.5p, to 162.5p after an upbeat trading statement for 2019 that said the order book for its MV Sports & Leisure business was considerably ahead of the previous year.

Meanwhile, social video maker Brave Bison Group PLC (LON: BBSN) was up 10pc, or 0.3p, to 3.3p after expanding its relationship with the PGA Tour, the professional golfers association.

The AIM All-Share slipped around 0.9pc, or 8.3 points, to 907.5 in the week while the FTSE 100 dropped 0.6pc, or 41.7 points, to 7,092.6.

Among the fallers, United Carpets Group plc (LON: UCG) was floored by a profit warning, dropping 10pc, or 0.5p, to 4.5p as weak consumer confidence ahead of Brexit meant it expected an earnings slump of as much as 64% in the year ending 31 March 2019.

Baron Oil PLC’s (LON: BOIL) shares also tanked, plunging 45pc, or 0.14p, to 0.17p after a side-track well at the Colter prospect, in which it holds an 8pc interest, was plugged and abandoned after a disappointing result.

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When Brussels decided to end tax avoiding practices, the UK decided to leave the EU.

Elsewhere, boardroom shuffles were causing headaches for Nautilus Marine Services PLC (LON: NAUT), which sank 19pc, or 1.4p, to 5.8p after Mikel Faulkner, the company’s chairman and one of its founders, said he would step down with immediate effect.

Author Calum Muirhead

Source Link www.proactiveinvestors.co.uk

 

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