STOCKS NEWS UK-ARM rises after Globalfoundries deal
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12:20GMT 06Oct2009-ARM rises after Globalfoundries deal
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Shares in chip designer ARM Holdings (ARM.L) rise 3 percent after manufacturer Globalfoundries, owned by AMD (AMD.N) and Abu Dhabi's Advanced Technology Investment Company, agrees to license the British company's technology in its next-generation 28 nanometer chips.
"It is a positive deal," says Investec analyst Gareth Evans, adding that it will generate royalty revenues five to 10 years out. Positive results from Samsung Electronics (005930.KS) [ID:nL6681148] on Tuesday were also taken well by ARM investors, he says, as the firm's processors are designed into a number of Samsung products.
Reuters Messaging rm://paul.sandle.reuters.com@reuters.net
12:15GMT 06Oct2009-Chloride off on update; bid hopes fade
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Shares in Chloride Group (CHLD.L) shed 3.3 percent after the power protection company's in-line trading update leads to downgrades and as recent bid speculation is dented.
Traders note that U.S. firm Emerson Electric (EMR.N), which walked away from a rejected bid for Chloride last year but has been rumoured to be considering a new approach, has launched a $1.2 billion agreed offer for network equipment technology provider Avocent Corp AVCT.O, making a bid for the UK firm unlikely.
In reaction to the trading update, KBC Peel Hunt cuts its rating for Chloride to "sell" from "hold" with an unchanged 140 pence target price as, despite recent bid speculation, it still argues that "the deterioration in end-markets has pushed a bid out to the right and cut the likely premium."
Numis Securities cuts its stance on Chloride to "hold" from "buy" on valuation grounds given the 23 percent rise in the firm's share price since September, although it remains positive on the long-term outlook for the group.
For more on Chloride's update, double-click on [ID:nL6189506]
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
10:29GMT 06Oct2009-FFastFill rises on trading update
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Shares in FFastFill (FFA.L) rise 5.5 percent as the company, which provides trading, clearing and settlement software to the financial sector, says it expects to report a profitable first-half, compared to a loss last year.
KBC Peel Hunt, which keeps its "buy" rating, says: "Market conditions appear to have stabilised and FFastFill remains well positioned to take advantage of beneficial structural and regulatory shifts in the over the counter derivatives market."
The brokers says key drivers for growth include; the increased outsourcing of system development by financial institutions and an increase in exchange-based trading.
For more double click on [ID:nRnsF2699A]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:39GMT 06Oct2009-Mouchel down as outlook weighs
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Shares in Mouchel (MCHL.L) fall 3.1 percent after the British infrastructure firm reports a 3 percent rise in full-year profit, as concerns over the impact of a possible spending lull and the recent share price performance weigh on the stock, analysts say.
"Through the course of next year we think Mouchel could suffer from the likely spending hiatus caused by the general election as well as tightening of highways spend," says KBC Peel Hunt analyst Andrew Nussey.
Brewin Dolphin places its forecasts and "buy" recommendation under review on the back of the results, saying it expects "short term growth to be more challenging."
The broker says it will downgrade its rating but raise its target price to reflect the increased sector valuation.
Meanwhile, Panmure Gordon says "there is some useful short term profit in the current share price."
Mouchel shares have risen 50 percent since its profit warning in June.
For more double click on [ID:nL6061230]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
09:22GMT 06Oct2009-Cryo-Save up on storage record
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Shares in Dutch-based stem-cell preservation firm Cryo-Save (CRYG.L) put on 3.4 percent after the company achieves a new stem-cell storage record, with 7,300 samples stored in Q3 2009, up 12 percent on Q3 2008.
Daniel Stewart repeats its "buy" recommendation on the stock, saying in a note the company has stored about 20,600 samples year to date, while the broker's full-year forecast is for 27,165.
It notes that notwithstanding a slight impact from seasonality in Q3, the roll out of umbilical cord services to additional countries and expected sales growth -- particularly in India and France -- leaves the company confident for Q4.
Daniel Stewart keeps its 118 pence target price for the company.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
08:57GMT 06Oct2009-Vodafone weak on Indian tariff wars
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Shares in Vodafone (VOD.L) fall 0.3 percent, underperforming a firm FTSE 100 .FTSE index which is up 0.8 percent, with the mobile telecoms giant unsettled by sharp falls in India telecom stocks on worries over a possible tariff war.
Shares in top Indian telecoms Bharti Airtel (BRTI.BO) and Reliance Communications (RLCM.BO) fall more than 10 percent on Tuesday after Reliance Communications on Monday cut all call charges across all networks to a flat 50 paise (1 U.S. cent) per minute, which is likely to further fuel a tariff war in the world's fastest-growing telecoms market.
SG Securities analyst, Saeed Baradar points out that, due to ongoing pressure on European operations, the Indian market represents Vodafone's key driver for EBITDA growth.
The analyst estimates that more than 60 percent of Vodafone's EBITDA growth for the year-ending March 2009 to March 2012 is underpinned by growth in India, so a potential rise in revenue pressure, combined with high levels of capital intensity, has the potential to impact Vodafone's financials further.
Baradar says, in his view, the risks are increasing on a stock which has benefitted from a current un-biased market re-bound but once the visibility to the underlying weakness increases in its first-half results, due in November, Vodafone shares look set to continue to underperform.
For more on Indian tariff wars, double click on [ID:nDEL411835]
Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
