STOCKS NEWS UK SMALL-Melrose Resources up on FY output forecast
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09:56GMT 19May2009-Melrose Resources up on FY output forecast
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Shares in Melrose Resources Plc (MRS.L) jump nearly 7 percent after the British oil and gas firm raises production forecast for 2009 by about 5 percent to reflect the continued strong performance from existing Egyptian fields.
Brokerage Collins Stewart raises Melrose Resources' price target to 350 pence from 300 pence, and says it continues to view Melrose as one of the best value stocks in its coverage.
The brokerage, which has a "buy" rating on the stock, says it sees the completion of the South Khilala development work, the Galata Gas storage agreementin Bulgaria and the Romanian farm-in agreement as good catalysts for the company's shares.
To see Melrose Resources' statement please click on [ID:nRnsS4546S]
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09:37 GMT 19May-Circle Oil up on oil and gas find
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Shares in Circle Oil (COPU.L) jump 12.6 percent after the company discovers oil and gas at its exploration well Geyad-1X in the Kareem Formation sandstones.
Fox Davies Capital says that "the oil is of excellent quality" and repeats its "buy" rating.
The broker says that Circle should "achieve production of at least 5,000 boe/d in late 2009 and 7,000 boe/d in 2010 ... Although with such a rate of discoveries those projections could prove too conservative".
"It is too early to estimate reserves and value for the Geyad accumulation but our NAV of 62p looks well underpinned," adds Fox Davies.
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09:12GMT 19May-Blinkx down; backdrop and cash concern
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Shares in Blinkx (BLNX.L), an online video search engine, fall 6.6 percent as the company announces a narrowing full-year loss for to $10.5 million, with Citigroup and Piper Jaffray cautious over the impact of the current backdrop and cash position.
Citigroup says: "Forecasts of a trebling or quadrupling of revenues looks optimistic now against the backdrop of lower search volumes and a tougher economic backdrop."
Piper Jaffray says: "A $9.3 million forex loss due to the strong dollar is deeper than expected ... this does leave the group's cash position some 2p/share lower than expected, with net cash now standing at 5p/share."
Blinkx shares remain 50 percent higher than their March 2009 lows.
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09:11GMT 19May-Gem Diamonds up on positive update
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Shares in Gem Diamonds (GEMD.L) rise 2.8 percent after the company issues its latest update, with FinnCap bullish on its outlook as the firm focuses on cost-cutting and bolstering its balance sheet to combat the downturn.
FinnCap says: "The company is focusing on its flagship Letseng mine in Lesotho where production appears to have hit a sweet spot ... Rough diamond prices from Letseng continue to hold up well."
The broker adds that "Gem is well placed for a recovery in the lower end of the diamond market but it is too soon to tell when this recovery will start to emerge". FinnCap keeps a "hold" rating on the stock.
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09:06GMT 19May2009-SSL up as FY results beat forecasts
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Shares in SSL (SSL.L) rise 4.8 percent to just under 482 pence after year results from the Durex condom and Scholl foot product maker beat forecasts and it says it will grow earnings per share by at least 50 percent in three years.
"To make this a public target is surely a measure of the company's confidence in its model going forward, and indeed the immediate outlook," say analysts at Credit Suisse in a note to clients.
"Results beat our forecast on every line," adds the broker, which has an outperform rating and a target price of 570 pence.
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08:34GMT 19May2009-CAMEC up; formalises DRC licences
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Shares in Central African Mining & Exploration Company CFM.L climb 6.5 percent as the company formalises the terms of its mining licences in the Democratic Republic of Congo after a review was completed by the central African nation.
Ambrian analyst Brock Salier says: "Camec's share price clearly has political risk priced in, so today's positive news from the DRC should lower the perceived risk somewhat, which can only be positive for the company."
"To date, CAMEC has negotiated the license review process well, and has demonstrated their agility as one of the few miners to have restarted production in the DRC," Ambrian adds, repeating its "buy" rating on the stock.
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