STOCKS NEWS EUROPE-Smartrac up; numbers fail to dampen mood
STOCKS NEWS Reuters Results diary
Stocks on the move [HOT-RTRS] Real-time Equity News [E] [WEU/EQUITY]
11:31GMT 17March2009-Smartrac up; numbers fail to dampen mood
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Shares in Smartrac (SM7.DE), a company that manufactures transponders for Radio Frequency Identification (RFID), rise 4.4 percent, as full-year figures that are below market expectations fail to dampen investors' confidence.
Traders point to UBS keeping its "buy" rating in the company. They say that the brokerage writes in a note it is still convinced regarding Smartrac's market leading position in the field and that business prospects remain good overall.
"The stock may bounce a bit because it has seen nearly no recovery lately," says a local trader, adding that Smartrac has not benefitted from the recent surge in the markets. For more double click on [ID:nLH246091], [ID:nWEA2814]
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11:25GMT 17Mar2009-Healthcare Locums falls on VAT concerns
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Shares in health and social care staffing agency Healthcare Locums (HLO.L) fall by 9 percent as concerns emerge over VAT payments and some investors take profits after Monday's full year results, analysts say.
From April 1, the UK government is set to withdraw a VAT concession for temporary staff, hitting Healthcare Locums by as much as 7.8 million pounds in 2009, analysts say.
On Monday, the company reported an increase in full year adjusted profit after tax to 11.6 million from 5.2 million last year.
"It's just filtering through now," says analyst Michael Vassallo at Brewin Dolphin.
"(The share fall) is a combination of that and I think there is a bit of profit taking," he says, adding that the tax change could have no effect at all on the company if it managed to pass the cost on.
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11:09GMT 17March2009-Tribal up; FY PBT up 21 pct; RBS says "buy"
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Shares in Tribal Group (TRBG.L) climb 5 percent as the British business support firm posts a 21 percent rise in adjusted full-year 2008 pretax profits of 18.6 million pounds ($26.12 million), with RBS repeating its "buy" rating.
The broker says in a note, Tribal's EPS of 14.7 pence beat its expectations and cash performance was strong, while revenue rose 12 percent to 234 million pounds, supported by acquisitions made during the year.
"Tribal has been an excellent performer year to date, outperforming the FTSE All Share index by over 50 percent and while the shares may pause for breath in the short-term, we remain impressed with the group progress," RBS adds.
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10:56GMT 17March2009-Torotrak soars on "transformational" deal
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Shares in Torotrak (TRK.L) surge over 44 percent as the transmission technology group concludes a licence and exclusivity agreement with Allison Transmission, Inc., and says Allison will buy an equity stake in the company.
"We see this as a transformational deal," says Arbuthnot Securities analyst Xavier Gunner.
"Allison is a very significant player in automatic transmissions for trucks in the U.S. -- it was spun out of GM in mid '07 -- so the endorsement couldn't be stronger really," he says.
Arbuthnot lifts its forecasts, and now expects a profit of about 2 million pounds in 2010 from its previous expectation of a loss of 1.5 million pounds.
The broker rates the stock as "buy" with a 25 pence target price.
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10:29GMT 17Mar2009-Source Bioscience up as FY results impress
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Shares in Source Bioscience (SBSC.L) leap 13.3 percent as the company posts a 41 percent reduction in full-year 2008 operating losses to 0.7 million pounds ($983,100), as Charles Stanley says the results confirm that management continues to deliver on its turnaround strategy.
The healthcare and biotechnology company also reports group revenue was up 53 percent to 11.5 million pounds, with organic growth of 11 percent, operating cash flow of 0.6 million pounds and net cash of 7.6 million pounds.
"The company is now well placed to serve the evolving needs of its three main customer bases, suggesting organic revenue growth is likely to be maintained at these levels," says Charles Stanley in a note.
The broker adds profitability is now firmly in sight and the shares remain materially undervalued.
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10:25GMT 17March2009-Europe shares pare losses after ZEW
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Europe shares pare losses after German analyst and investor sentiment on the outlook for Europe's biggest economy rose unexpectedly to its highest level in about a year and a half.
The FTSEurofirst 300 .FTEU3 index of top European shares is down 0.4 percent at 717.83 points, having been down as low as 710.91 earlier.
Germany's DAX .GDAXI is down just 0.2 percent.
The Mannheim-based ZEW economic think tank's monthly poll of economic sentiment rose to -3.5 in March from -5.8 in February. It was the highest reading since August 2007, ZEW said.
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10:24GMT 17Mar2009-Advanced Medical Solutions up on results
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Shares in Advanced Medical Solutions (AMSU.L) gain 1.5 percent as the company posts a 54 percent rise in 2008 pretax profit to 2.9 million pounds, beating expectations, prompting Investec Securities to initiate coverage of the company with a "buy" recommendation.
Investec says, in a note, Advanced Medical Solutions results "came in significantly ahead of consensus expectations, driven by a better than expected margin performance from both divisions".
The broker says the woundcare specialist "is a rare beast in the health sector - it has no gearing and is capable we believe of delivering in excess of 20 percent EPS growth per annum over the next three years".
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10:09GMT 17Mar2009-Wellstream up on 2008 profit
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Shares in Wellstream Holdings (WSML.L) rise 3.4 percent after the pipemaker posts a 70 percent increase in 2008 operating profit to 81 million pounds and says its order book already represents over 70 percent of expected 2009 sales.
Credit Suisse says Wellstream's full year results are in line with estimates, citing the company's continued focus on deepwater projects.
The broker, however, cautions that industry orders in 2009 may be delayed as customers hope to benefit from falling raw material and equipment prices.
Credit Suisse maintains its "outperform" rating on Wellstream.
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10:05GMT 17March2009-ArcelorMittal hit by renewed cap hike talk
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Shares in steel group ArcelorMittal (ISPA.AS) tumble 6 percent -- the biggest losers on the STOXX50 blue-chip index -- as traders cite renewed market talk that the company could raise capital to shore up its balance sheet.
"This rumour has been around for a few days. It would not come as a surprise if they raise cash," one Paris-based trader says.
The Financial Times reports that the company is rumoured to have hired JPMorgan and Deutsche Bank to co-ordinate a rights issue valued at about 5 billion euros, with talk over the pricing of the shares centred on ArcelorMittal issuing one new share for every two held at a discounted price of 8 euros.
ArcelorMittal officials are not immediately available for comment.
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09:42GMT 17Mar2009-Cello up; PBT beats expetations, Altium "buy"
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Shares in Cello (CLL.L) climb 3.2 percent after the market research and consultancy firm posts a pretax profit of 6.9 million pounds and raises its full-year dividend by 4 percent to 1.25 pence.
Altium Securities, which has a "buy" rating on the company, says in a note that Cello's preformance is "very creditable ... against a deteriorating economic backdrop."
The broker says adjusted PBT came in around 8 percent ahead of its expectations and notes that clients continue to switch spending away from advertising towards areas with a clearer return on investment propositions, which is positive for Cello.
For more double click on [ID:nRn1Q9530O]
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