STOCKS NEWS UK SMALL-JJB soars on gyms disposal report
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12:48GMT 13Mar2009-JJB soars on gyms disposal report
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Shares in JJB Sports (JJB.L), the struggling British sportswear retailer, soar as much as 32 percent to 12.7 pence after a report in the Daily Telegraph said Dave Whelan, the group's founder, is set to pay 60 to 70 million pounds for its fitness clubs business.
JJB needs to sell the 50-strong fitness clubs chain as it owes its lenders -- HBOS (LLOY.L), Barclays (BARC.L) and Kaupthing about 60 million pounds.
The firm's standstill agreement with the banks expires on Monday and is conditional on it making progress on the disposal of the fitness clubs.
David Stoddart, analyst at Altium Securities, said 60 to 70 million pounds might be enough to secure JJB's survival.
"It depends on what you think the profitability and cashflow profile of the remaining business is," he said, noting that JJB also faces a second quarter rent bill of about 20 million pounds, due at the end of March.
JJB declined to comment.
Reuters messaging rm://james.davey.reuters.com@reuters.net
12:41GMT 13March2009-Tullett Prebon up, Nomura lifts target
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Shares in interdealer broker Tullett Prebon (TLPR.L) gain 6 percent, after broker Nomura increases its price target to 400 pence while keeping a "buy" recommendation on the stock.
"Whilst Tullett's revenues will undoubtedly be under pressure in 2009, we think Tullett is still attractive given its high dividend yield, low net debt position, strong cash generation capability and flexibility in further reducing its cost base," Nomura writes.
Shares in Tullett jumped 16 percent earlier this week, after it reported a better-than-expected 36 percent rise in underlying yearly pretax profit and predicted reasonable growth this year.
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Reuters Messaging rm://martina.fuchs.reuters.com@reuters.net
12:30GMT 13Mar2009-FTSE Small Caps up 1.5 percent at midday
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The FTSE Small Cap index .FTSC climbs 1.5 percent, gaining momentum in mid session trade, but underperforms the wider UK market which also looks to end the week on a positive note, with the FTSE 100 .FTSE 2.4 percent higher and the FTSE 250 .FTMC rising 2.7 percent.
Dwyka Resources DWY.L rises 26 percent as the company retains its 100 percent ownership of its Muremera Nickel Project in Burundi after BHP Billiton (BLT.L) elects not to continue with its earn-in deal for the project, with Ambrian repeating its "buy" rating.
Reuters Messaging rm://david.brett.reuters.com@reuters.net
12:21GMT 13March2009-Scarcity of credit boosts pawnbrokers
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The scarcity of credit may be choking demand and exacerbating an already severe downturn, but it is adding to the attraction of the archetypal recession-proof businesses -- pawnbroking, says Daniel Stewart & Company.
"Unlike typical unsecured lenders who provide short-term credit to customers who invariably provide a bad debt headache, pawnbroking loans are secured against the value of a pledged item, one that is valuable and highly liquid, i.e. gold," the broker says in a note.
It cites Albermarle & Bond (ALBH.L) and H&T Group (HTGR.L) as being well-positioned to benefit from the current inclement economic climate.
"Both A&B and H&T have extensive trading histories that span the economic cycle. Performance throughout this cycle has been impressive," Daniel Stewart says. "It could be argued that current market conditions (scarcity of credit & high gold price) are better than they have been for some years."
A&B is down 3.9 percent this year, while H&T has gained 18 percent, and Daniel Stewart sees the latter as the best bet for the year ahead.
"We see the risk to forecasts for both businesses being on the upside, particularly for H&T who report 2008 full year results on the 20 March."
Reuters Messaging rm://simon.falush@reuters.com@reuters.net
12:17MT 13Mar2009-AGA up; few surprises in results
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Shares in Aga Rangemaster Group (AGA.L) climb 13 percent after the cooker manufacturer reports full-year results which Citigroup says "contained little to surprise".
The company posts a near halving in full-year profit and omitted its final dividend as demand was impacted by the economic downturn.
Citigroup says in a note, Aga, which has reduced its workforce, is now "right sized to be profitable and cash generative based on current demand" and remains relatively well set financially".
Broker FinnCap says: "Reduced capital expenditure and lower working capital will further strengthen the cash position," the broker adds.
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Reuters Messaging rm://david.brett.reuters.com@reuters.net
11:47GMT 13March2009-Inmarsat up after Goldman Sachs upgrade
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Shares in British broadband communication company Inmarsat (ISA.L) are up 2.7 percent, after broker Goldman Sachs lifts its price target on the company to 7.21 pounds from 7.11 pounds and reiterates a "buy" recommendation.
"The stock has de-rated materially on an absolute and relative basis and we see scope for this to reverse in light of robust, cash generative growth," broker Goldman Sachs writes in a note.
"We think secular drivers will continue to prove stronger than potential cyclical drag in 2009 as customers migrate onto higher bandwidth services and believe this support will continue into the medium term."
Reuters Messaging rm://martina.fuchs.reuters.com@reuters.net
11:09GMT 13Mar2009-Avis down on trading condition fears
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Shares in Avis Europe (AVE.L) fall 2.9 percent as traders cite fears over detriorating trading conditions and the group's banking covenants.
Europe's biggest car rental company's shares have tumbled almost 65 percent since October, 2008.
Investec Securities says in a note that a combination of weak markets, high gearing and refinancing risk is weighing on Avis' share price.
However, the broker adds: "Gearing is high but we do not think Avis will breach its banking covenants and expect the group to generate cash this year."
Reuters Messaging rm://david.brett.reuters.com@reuters.net
