STOCKS NEWS UK-Renold soars on Financial Times tip
STOCKS NEWS Reuters Results diary
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09:15GMT 13July2009-Renold soars on Financial Times tip
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Shares in Renold (RNO.L) rise 24 percent after the chainmaker is tipped as a company to watch by stock market historian David Schwartz in the Financial Times newspaper on Saturday.
"Renold is ranked number two worldwide in its category and is doing well, given the ongoing recession ... To my eye, Renold is making the right decisions and does not have the feel of a troubled company," Schwartz writes in the FT.
A trader at KBC Peel Hunt says: "Renold was strongly tipped in the FT on the weekend and that has boosted their shares."
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09:00GMT 13July2009-Healthcare Locums gains on strong trading
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Shares in Healthcare Locums (HLO.L) gain 4.5 percent after the British health and social care staffing agency says first-half trading was strong on a growth in demand for qualified health and social care professionals.
The company's quoted run rate gross profit (net fee income) of 63 million pounds is consistent with analyst Brewin Dolphin's full year target of 62 million pounds and year end exit rate of 68 million pounds, Brewin analyst Michael Vassallo says in a note.
The brokerage, which rates the stock at "hold", says that as the year-end approaches, a higher rating would be justified if the company can keep on track with forecasts.
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08:43GMT 13July2009-Mears Group up on contract win
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Shares in Mears Group (MERG.L) gain 1 percent, outperforming a retreating small cap index .FTSC, down 0.2 percent, as the British social housing services company announces a 200 million pounds, 10-year servicing contract from Brighton & Hove City Council.
Charles Stanley says the contract takes the group's total new contract wins in 2009 to nearly 400 million underlining "the strong growth opportunities within both of Mears' key business divisions and highlight the excellent value that the shares present at current levels."
The broker estimates Mears trades on a price earnings of 10.7 times 2009 and 9.4 times 2010, which it says is "too low when considering the group's strong growth potential, defensive qualities and its significant discount to the wider Support Services sector (22% on current year earnings)."
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08:11GMT 13July2009-ITV shares rise on UBS upgrade
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Shares in British broadcaster ITV (ITV.L) rise as much as 3 percent after UBS upgrades the stock to "buy" and its price target to 37 pence, saying it sees increased probability that ITV could switch to a pay-TV model from an ad-funded one.
"We believe ITV is differentiated from its peers by potential upside from the adoption of a subscription model. Our analysis suggests foregone advertising revenues would be more than offset by carriage fees from pay TV retailers," UBS writes.
British regulator Ofcom is currently conducting a review of the UK pay-TV market, which is likely to result in BSkyB's (BSY.L) having to offer its premium sport and movie content to pay-TV rivals, reducing its competitive advantage.
ITV shares are up 2.3 percent to 32.75 pence, off an earlier high of 33.5 pence, and leading the gainers in a 0.3 percent-weaker European media index .SXMP.
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07:58GMT 13July2009-AB Foods down; RBS cuts to "sell"
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Shares in Primark owner Associated British Foods (ABF.L) fall 2.4 percent as RBS downgrades its recommendation to "sell" from "hold" on valuation grounds following the recent "strong" performance of its shares.
RBS says the catalyst for the share price has been the "surge of optimism surrounding Sugar profit prospects."
The broker says the risk/reward is weighted on the downside.
"Even if Sugar meets the more optimistic market expectations, the current valuation of the shares puts them on only a modest discount to the branded international food companies we cover, and well ahead of the multiples we believe most of its component businesses would command as standalone entities," it says.
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07:44GMT 13July2009-Venture Prod up; rejects Centrica bid
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Shares in Venture Production VPC.L, the North Sea gas producer, rise 4.7 percent after the company rejects a $2 billion hostile approach from UK utility Centrica (CNA.L), with traders expecting a revised bid shortly.
Two of Venture's largest shareholders, Arclight Capital Partners and one of Venture's founders Larry Kinch, backed the managements decision to repel the bid, with both agreeing the 845 pence per share offer undervalued the company.
"An increased bid somewhere near the target price of 950 pence looks likely, quite a turnaround for a firm that was trading at 280 pence as recently as last November," says Mark Priest, senior trader at ETX Capital.
Centrica shares are up 0.3 percent.
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07:35GMT 13July2009-Cranswick rises on upbeat outlook
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Shares in Cranswick Plc (CWK.L) rise as much as 5 percent after the pork supplier says its sales in the first quarter were up and it remains confident of its prospects for the future.
Analyst Charles Hall of KBC Peel Hunt says: "We expect the good trend to continue and believe the shares to be excellent value." The broker says Cranswick's gourmet sausages have been supported by a good barbecue season, a consumer switch to pork and by the 'Jamie Oliver effect' - a surging interest in good quality food spurred by celebrity chef Oliver.
Hall has a "buy" rating and a price target of 700 pence on the company's stock.
For more please click on [ID:nBNG489601]
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07:25GMT 13Jul2009-Spice up as FY profit jumps 58 pct
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Shares in Spice (SPI.L) rise as much as 6.6 percent after the utility support services group meets expectations with a 58 percent rise in full-year profit.
Spice, which on Monday acquired Australian telecoms firm ComGroup for 6.9 million pounds, says its exposure to growing markets would help it through the tough economic climate.
"Proactive restructuring is minimising risk. The outlook remains positive, driven by the exposure to non-discretionary and regulated spend, rising barriers to entry, increasingly technical solutions and further cross selling potential," says KBC analyst Andrew Nussey, who maintains a "buy" rating on the group.
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