Investors Chronicle back issues from September 2005:
Investing in yourself.
Sep 02, 2005 ... If you have been investing for some time now, you'll know the standard approach to any investment: what is its expected rate of return and how does that compare with the risk-free rate? For instance, if the expected return of a risky investment cannot even match the risk-free rate, there ...
Oil shocks.
Sep 02, 2005 ... The stock market is starting to get queasy about the price of oil. While the world economy uses a lot less oil to produce a unit of GDP than it did in the bad old days of the first oil shock, oil and associated energy costs still remain a pivotal driver of economics. Depending on who you ...
Wise men's folly.
Sep 02, 2005 ... It pays to listen to City analysts' views - if you do the exact opposite of what they say. Had you bought their 10 least favourite shares - as I suggested doing in February - you'd be 10.6 per cent up by now. By contrast, the FTSE All-Share Index has risen by just less than 5 per cent over ...
Two stories.
Sep 02, 2005 ... There are compelling reasons to be bullish about US - and therefore UK - equities. Several indicators, most especially the price-earnings (PE) ratio and foreign buying of US stocks, suggest that investors are relatively risk-averse now. This should lead to good returns - it has often done ...
When to sell.
Sep 02, 2005 ... I have borrowed my title from Philip Fisher's excellent book, Common Stocks and Uncommon Profits, featured in this column many times. Mr Fisher said there are "three reasons, and three reasons only" to sell a stock. The first, is that you realise the initial analysis that drew you in was ...
End of summer.
Sep 02, 2005 ... It's September. This is an important investment fact. Traditionally, September has been the worst month for equities. Since 1966, the average total return on the FTSE All-Share index in September has been minus 0.8 per cent, against an average of plus 1.3 per cent in the other 11 months ....
Yes - the global economy matters.
Sep 02, 2005 ... Some very important, and unjustly neglected, figures are released next Friday: the Organisation for Economic Co-operation and Development (OECD)'s index of leading indicators for the world economy. Our chart, right, shows why it matters. There's a close link between the OECD's ...
The big freeze.
Sep 02, 2005 ... The National Health Service has always been a tricky customer. Having to cope with bureaucracy is a fact of life for businesses relying on the NHS for their bread and butter. As a result, it can take considerable time for sales of a new product to take off. Hospital doctors ...
Housebuilders to reveal profit squeeze.
Sep 02, 2005 ... A flood of results is due from the UK's housebuilders in the coming weeks. Although dark predictions of a 20 per cent drop in house prices during this year have so far proved wide of the mark, the market has clearly cooled. Recent figures from Hometrack, the property research company, ...
Exubera breath of fresh air for Bespak.
Sep 02, 2005 ... Shares in Bespak could receive a boost when Pfizer's drug Exubera goes before the US regulators on 8 September. The inhaleable insulin product, for which Bespak is making the inhalers, could revolutionise the lives of insulin-dependent diabetics. Its launch has been delayed for ...
Protherics faces Texan challenge.
Sep 02, 2005 ... New technology discovered by scientists in Texas may make Protherics' BSE test obsolete. US researchers have found a new method of screening for Creutzfeldt-Jakob disease-causing prions in the blood. Conventional tests, including Protherics' test, licensed to Irish company Enfer, can only ...
Eckoh to spin off Symphony.
Sep 02, 2005 ... Eckoh Technologies is to float subsidiary Symphony Telecom Holdings on Aim. It plans to raise GBP4.51m for Symphony, which will have a market capitalisation of around GBP12.75m when it floats. The hope is that, following April's acquisition of Anglia Telecom Centres, Symphony will ...
The rate red herring.
Sep 02, 2005 ... Everyone's got an opinion on where interest rates are going. But why should equity investors care? Our chart, right, shows that this is not a stupid question. It shows that the correlation between annual changes in official interest rates and annual returns on UK equities has ...
Bird 'flu could infect markets.
Sep 02, 2005 ... Investors should begin to worry about Avian 'flu, the economists now say. The World Health Organisation estimates that more than half the humans infected with the virus have died. And it warns that bird 'flu is "presently considered the most likely virus to ignite the next ...
Opening shot in battle for BPB.
Sep 02, 2005 ... French building materials group St Gobain has fired off its hostile offer document to BPB's shareholders. Despite speculation that the price would be raised, the French raider stuck to its 720p bid. Plasterboard maker BPB has rebuffed the recent approach ...
US Engineers Battle For Domnick Hunter.
Sep 02, 2005 ... The bidding war for Domnick Hunter stepped up a gear after US engineer Eaton tabled a 675p-a-share offer for the filtration specialist. The offer values Domnick Hunter at GBP242m, but is not yet recommended by management. Initial bidder Parker Hannifin, which had already raised its own ...
Ottakar's management tables bid.
Sep 02, 2005 ... Ottakar's management has agreed the terms for a 350p-a-share cash offer for the bookshop chain. Meanwhile, David Roche, product director at Waterstone's, has been appointed chief executive of Book Store Acquisitions, the bidding vehicle. Ottakar's ...
Tough times for Matalan.
Sep 02, 2005 ... In a trading statement, Matalan, the out-of-town value clothing retailer, has reported a fall in underlying sales of 3.4 per cent for the eight weeks to 27 August, and a 6.4 per cent fall for the 26 weeks to 27 August. Gross margins have, however, inched higher. ...
Oil shares surge as Katrina pushes up crude prices.
Sep 02, 2005 ... Not for the first time in recent years, shares in independent oil exploration and production (E&P) companies have surged to new highs on the back of soaring oil prices - despite yet more poor news on the exploration front. The trigger for the latest volatility in the oil price ...
Bad Girls boost for Shed.
Sep 02, 2005 ... TV production company Shed Productions has reported that ITV has recommissioned two of its programmes. Shed will produce an eighth series of Bad Girls and a second series of Footballers' Wives Extra Time. The ...
Trafficmaster accelerates on portable deal.
Sep 02, 2005 ... Trafficmaster has signed a milestone three-year agreement to provide its traffic information to Garmin, the global navigation products company. This is Trafficmaster's first contract with a major portable navigation unit manufacturer, and its shares surged 8 per cent to ...
Eurotunnel faces damages claim.
Sep 02, 2005 ... Eurotunnel is being sued by TransFerry, its former ticket agent, which dealt with smaller haulage companies under the EurotunnelPlus name. TransFerry is pursuing damages for a string of alleged failings, which include breach of contract and the misuse of confidential information. ...
Opromark opens up property market.
Sep 02, 2005 ... Investors can now buy and sell shares in individual houses using a new trading exchange. The Opromark exchange, launched in June, has just sold its first property, a one-bedroom terraced house in Leeds, to 65 investors. Opromark traders ...
Augean makes Proactive buy.
Sep 02, 2005 ... Waste-management specialist Augean has bought Proactive, a hazardous-waste treatment specialist, for GBP8m. The acquisition will improve Augean's geographic coverage by adding a site at Cannock, in the West Midlands, to its facilities in ...
Poor sales hit Imagesound.
Sep 02, 2005 ... Shares in Imagesound were savaged as it warned on full-year profits. One-off system sales are weak, and the cost of servicing and maintaining the existing customer network are high. The hope now is that Imagesound ...
Week Ahead...
Sep 02, 2005 ... Tuesday 6 September Taylor Woodrow reports its half-year figures on Tuesday. While exposed to a weak UK housing market, its diversification into the US, Spain and other overseas market is a distinct advantage. The group's UK completions in the first half fell 17 per cent, while ...
Pension sales rise.
Sep 02, 2005 ... UK consumers may be starting to spend less and save more towards retirement and old age, according to latest figures released by the Association of British Insurers (ABI). New business rose by 13 per cent in the second quarter on an Annual Premium Equivalent (APE) basis, which is the ...
Inter Moly gears up for Greenland production.
Sep 02, 2005 ... International Molybdenum (Inter Moly) has signed up HB Advisers to help sell molybdenum from its Malmbjerg mine in Greenland. Production should start by the second half of 2008. HB Advisers, a division of global minerals consulting business Hatch, is one of the world's leading ...
Value shares survive high-street massacre.
Sep 02, 2005 ... Value stocks are holding up remarkably well in the face of falling retail sales. The Confederation of British Industry (CBI) reported this week that 45 per cent of retailers have seen falling sales in the past 12 months, with only 27 per cent reporting a rise. This suggests sales are even ...
Quantica expands with RK buy.
Sep 02, 2005 ... Quantica is bolstering its position in the recruitment industry via the GBP12.35m acquisition of RK Group. To help fund the addition, it is raising GBP10m via a placing and open offer at 55p a share. Broker Numis forecasts ...
Robinson to snare Rentokil?
Sep 02, 2005 ... Former Granada Television chief, Sir Gerry Robinson, this week reiterated his interest in bidding for pest-control group Rentokil Initial. He confirmed that his investment vehicle, Raphoe, has spoken to Rentokil's advisers and that it is also seeking discussions with its ...
MediaZest strengthens customer base.
Sep 02, 2005 ... Marketing agency MediaZest is paying up to GBP3m for rival TouchVision. This is its first acquisition since joining Aim earlier this year and strengthens MediaZest's customer base by bringing on board the likes of BAA, Electronic Arts ...
Bids soon for Somerfield?
Sep 02, 2005 ... Also-ran supermarket chain Somerfield may soon be at the top of the shopping list after watchdogs clarified the issue surrounding the hole in its pension fund. Any potential buyer would have to plug the gap quicker than would be the case if the ...
Jurys bid not out.
Sep 02, 2005 ... Precinct's Investments has withdrawn its E17.5 per share bid for Irish hotel owner Jurys Doyle. Uncertainty over Precinct's financial backing and share purchases by a possible rival bidder appear to have scuppered the approach. As an 18 per ...
INVESTMENT TRUST NEWS - Underperformers under fire.
Sep 02, 2005 ... - The board of corporate bond trust ACM European Enhanced Income is to announce proposals to wind the fund up, under pressure from hostile institutional shareholders (known as arbitrageurs). Arbitrageur Carrousel Capital has a 27 per cent stake in the trust. Shareholders are to be offered ...
Bonus horribilis.
Sep 02, 2005 ... City regulator the Financial Services Authority (FSA) has reported that the capital strengths of the UK's with-profits providers improved by 16 per cent over the year to the end of June. The FSA's David Strachan announced: "This is good news for both the firms themselves and for consumers, ...
HENDERSON GROUP (HGI).
Sep 02, 2005 ... Steady progress at Henderson Global Investors (HGI) and Towry Law pushed profits upwards during the last six-month period. This was despite an GBP18.6m loss taken on the disposal of its life-services business. A better return on cash balances and lower costs helped HGI improve its ...
Highbury stake-building boosts takeover prospects.
Sep 02, 2005 ... Former editor of The Sun, Kelvin MacKenzie, has continued to build his stake in publisher Highbury House with the purchase of a further 15.5m shares - that gives him a 19.8 per cent stake in the company. Prospects of a takeover of Highbury ...
CRH (CRH).
Sep 02, 2005 ... Irish construction and building materials group CRH saw its US operations more than compensate for a somewhat subdued performance elsewhere. The US products division was helped by a strong housing market, as well as non-residential construction and infrastructure. And, unlike on the ...
RENTOKIL (RTO).
Sep 02, 2005 ... Once renowned for its 20 per cent a year growth during most of the 1980s, Rentokil is now in the process of slipping back - first-half profits fell 40 per cent. The company is still struggling to gain any momentum, and the findings of a comprehensive internal business review do not make ...
HAMMERSON (HMSO).
Sep 02, 2005 ... Hammerson's results will provide cheer for the UK retail property sector, currently suffering from a downturn in consumer spending. The property developer, which owns London's Brent Cross shopping centre, has nearly 60 per cent of its portfolio in shopping malls and retail parks in the UK ...
TOMKINS (TOMK).
Sep 02, 2005 ... Weakness in North American automotive markets hit growth at diversified engineer Tomkins, following production cuts at key US customers General Motors and Ford and delays to the introduction of the TREAD Act, which will mandate the use of tyre-pressure sensors in the US. Continuing high ...
FAYREWOOD (FWY).
Sep 02, 2005 ... In June, Fayrewood raised GBP11.1m by reducing its holding in German subsidiary ComputerLinks from 50.1 per cent to 27.8 per cent. This resulted in an exceptional gain of GBP6.6m. The move has allowed Fayrewood to focus on its niche distribution business, where sales grew 13 per cent year ...
IQE (IQE).
Sep 02, 2005 ... IQE is making steady progress and achieved profitability in June at the operating level for the first time in four years. The number of wafers made for semiconductors fell slightly compared with last year, but the total area of the wafers shipped increased by 36 per cent, reflecting a ...
OPTIMISTIC ENTERTAINMENT (OEP).
Sep 02, 2005 ... Television channel owner and operator Optimistic Entertainment managed to boost group revenues by 588 per cent in the first six months since listing on Aim in January this year. And it has a four-point plan for further expansion. The main emphasis is on developing innovative and ...
GIBBS & DANDY (GDYO).
Sep 02, 2005 ... Builders' merchant Gibbs & Dandy expects full-year profits to be down between 10 and 15 per cent from the record levels of 2004. First-half profits were up a little, but profits in the second half are not expected to hit the levels seen last year due to slower sales. Since ...
INMARSAT (ISAT).
Sep 02, 2005 ... Inmarsat, which provides services such as phone, video and internet access via satellite, has made a promising stock market debut: it listed in June at 245p and has since risen to 316p. The company is currently in a period of transition as it rolls out a new generation of Inmarsat-4 ...
TITAN EUROPE (TSW).
Sep 02, 2005 ... Titan has done well to deal with steel supply difficulties and a high, yet sometimes unpredictable, level of customer demand. The company used some of its cash to stockpile steel stocks in order to counter customer and supply irregularities, which led to a significant rise in stock levels, ...
BUNZL (BNZL).
Sep 02, 2005 ... Profits at Bunzl were boosted by a strong performance in Europe, as well as the benefits of recent acquisitions. The company demerged its Filtrona arm earlier this year to concentrate on its core business of delivering paper towels and cleaning items to hotels and restaurants, plastic ...
CRC (CCG).
Sep 02, 2005 ... CRC is exploiting the outsourcing boom in the technology-repair market. The company repairs consumer products such as mobile phones, laptops and MP3 players, as well as business equipment such as point-of-sale terminals, cash dispensers, set-top boxes and computers. The group ...
MEARS GROUP (MER).
Sep 02, 2005 ... The residential property market may be treading water, but social housing is a growing market. And Mears, which provides maintenance services to this sector, is poised to benefit. The group secured GBP220m of new work in the first half alone, and the order book now stands at GBP960m, with ...
DANIEL THWAITES.
Sep 02, 2005 ... A fall in property disposal gains from GBP900,000 to GBP100,000 accounted for the dip in Daniel Thwaites' 2004-05 profits. It remains a big spender, though. Last year, it paid GBP7m for a pub company with 14 tenanted outlets and nearly GBP15m on another 11 hostelries. It also refurbished ...
MERCURY RECYCLING (MRG).
Sep 02, 2005 ... In the UK, we throw away 100m fluorescent tubes and sodium street lamps each year. At present, around 12m of them are recycled, of which Mercury Recycling takes 6m - the rest usually end up in landfill sites. The company was the first in the UK to set up a dedicated plant in to separate ...
SLOUGH ESTATES (SLOU).
Sep 02, 2005 ... Slough Estates, whose greatest claim to fame is that its massive Slough Trading Estate was featured in the titles to Ricky Gervais's hit comedy The Office, is not exactly high-profile. But this industrial property behemoth is going to be talked about a lot more when real estate ...
SCREEN FX (SFX).
Sep 02, 2005 ... ScreenFX is rolling out a new form of advertising. It installs 63-inch digital flat screens at just above head height in shopping malls. Below them it puts an "info pod" that provides shoppers with a touch-screen directory of retailers in the mall. Normally, there are between 16 and 30 ...
WYNNSTAY PROPS. (WSP).
Sep 02, 2005 ... Following a property revaluation, Wynnstay Properties' shares are at a peak. Last year's trading figures, which included disposal gains of GBP443,000 (GBP81,000), have also helped. More than half the portfolio now consists of industrial units situated in southern England. But 2004-05 will ...
TEP EXCHANGE (TEX).
Sep 02, 2005 ... The improvement in TEP's 2004 turnover shows that life is returning to the second-hand with-profit endowment trading market. That's largely thanks to the Germans, who buy traditional endowment policies for tax-efficient collective investment schemes. TEP outsources operational management ...
FRONTIER MINING (FML).
Sep 02, 2005 ... Frontier joined Aim last September via a placing at 15p a share and raised GBP3.5m. Although that was considerably less than the GBP10m it had hoped to raise at 42p a share, the company has made good progress developing its mining interests. They all lie within 250km or so of each other in ...
REAL GOOD FOOD (RGD).
Sep 02, 2005 ... Real Good Food (RGF) is growing fast by acquisition. In 2003, it bought bakery interests and moved to Aim. Then it snapped up frozen fish distributor Five Star Fish for GBP16.6m in May 2004. Now it has nabbed family-controlled Napier Brown Foods (NBF). It cost GBP67.74m in shares after ...
News round-up.
Sep 02, 2005 ... - HM Revenue & Customs has confirmed that inheritance tax will be applied to any pension funds left behind after death under the new pension regime post-A Day (6 April 2006). It will be possible to remain invested after the age of 75, rather than buying an annuity, so your ...
BHP BILLITON (BLT).
Sep 02, 2005 ... BHP Billiton's chief executive, Chip Goodyear, delved deep into history to justify current commodity prices. One of his presentation slides featured a chart of US commodity prices dating back to 1801. The message was that we are entering a multi-decade period of higher prices. ...
PGI (PGI).
Sep 02, 2005 ... PGI (formerly Plantation & General) has changed tack. Since exiting from a Brazilian hand-tool maker and from loss-making tea and sisal estates in Tanzania in 1999, the company was left with a variety of plantation businesses. It now concentrates on its east African plantation interests ....
SOLID STATE SUPPLIES (SSP).
Sep 02, 2005 ... Solid State has revealed that the "substantial" acquisition it talked of, is Systems integrator Wordsworth, bought for GBP1.67m. Last year's results were split between improved distribution profits and disappointing figures from radio maker Steatite. As more component clients move ...
PITTARDS (PTD).
Sep 02, 2005 ... Times are hard for Pittards and they're unlikely to get much easier in the short term. Last year, demand for glove leather fell by one-fifth, while sales of leather for footwear, sport and luxury goods fell by 27 per cent, 2 per cent and 9 per cent, respectively. This "deteriorating ...
MAVERICK ENTERTAINMENT (MVK).
Sep 02, 2005 ... Muffin the Mule is lolloping to the rescue of Maverick in full-colour animation. The first 26 episodes have been delivered to the BBC and the initial fee for a five-year licence will exceed last year's total income. Maverick's large 2004 loss included a GBP1.77m write-down of ...