STOCKS NEWS UK SMALL-FTSE small caps up 0.6 pct at midday
11:50GMT 20May2009-FTSE small caps up 0.6 pct at midday
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The FTSE Small Cap index .FTSC gains 0.6 percent in midday trade, outperforming the blue chips .FTSE, which fall 0.5 percent, and the midcaps .FTMC, which add 0.1 percent.
Cannabis drug specialist GW Pharma (GWP.L) rises 7.6 percent after the company says that it has filed its Sativex drug for regulatory approval in Europe. [ID:nLK408731]
African Eagle (AFE.L) climbs 5.3 percent as Seymour Pierce says a higher valuation of the Dutwa nickel project and inclusion of the new gold resource at Igurubi leads it to repeat its "buy" rating and up its target price 31 percent to 21 pence. [ID:nLK27059]
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11:46GMT 20May2009-Cape up on trading
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Shares in Cape Plc (CIU.L) rise 1.5 percent after the British energy services group says its year-to-date underlying trading performance was in line with its projection and activity levels were ahead on a year-over-year basis.
The company says it is trading strongly in both the Gulf and the UK, with an encouraging amount of work scheduled for the summer power station outages in the UK.
Collins Stewart, which rates Cape as "buy", says: "Alongside the market's new found appetite for industrial/cyclical stocks, the realisation that Cape's debt is manageable and that the Group continues to trade comfortably within its covenants has finally been taken on board by the market."
For more double click on [ID:nBNG495158]
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11:33GMT 20May2009-Jubilee Platinum up on Braemore deal
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Shares in Jubilee Platinum (JLP.L) are up 8 percent as Growth Equity & Company Research rates the company as "buy" on the back of Tuesday's news that Braemore Resources BRR.L BREJ.L had agreed to provide smelting and refining facilties to the company.
"This announcement is another sign that Jubilee is moving towards near-term cash generation which will significantly de-risk the investment proposition," says GE&CR analyst Thomas Jones in a note.
"The key value in Jubilee lies at Tjate and we await the publication of a new compliant mineral resource estimate within the next few months which will, we believe, be the catalyst for a major re-rating of the shares," Jones adds.
For more double click on [ID:nBNG427928]
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10:30GMT 20May2009-Telecom Plus falls on bearish forecast
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Shares in Telecom Plus (TEP.L) fall 10.6 percent after the utility services group says its 2009/10 profit will likely fall as costs increase and energy prices drop.
Broker KBC Peel Hunt downgrades Telecom Plus' pretax profit forecast for the year to 17 million pounds from 25 million pounds but says a period of investment this year should provide the basis for substantial profit growth in 2010.
"The figures reflect a rise in investment but primarily a more prudent view on energy pricing and gross margins over the next year. However, its customer acquisition costs are low and the majority of customers are profitable within a short time, which should provide substantial profit growth in 2010 and beyond," short time, which should provide substantial profit growth in 2010 and beyond," says KBC analyst Alex Jarvis, who maintains a "buy" rating on the stock.
For more, click on [ID:nLK7716]
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10:17GMT 20May2009-GW higher on cannabis drug hopes
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Shares in cannabis drug specialist GW Pharma (GWP.L) rise 8 percent after the company says it has filed its Sativex drug for regulatory approval in Europe.
"Since the pivotal trial was designed largely by the regulators we feel there is relatively low risk of a rejection," says KBC analyst Paul Cuddon.
"A maiden set of interim profits, strong cash position and the fact that they've filed Sativex for approval in Spain and the UK can all be considered good news," says Cuddon, who has a "buy" stance and 120 pence price target on the stock.
To see the article please click on [ID:nLK637963]
To see the article please click on [ID:nLK637963]
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10:15GMT 20May2009-First Derivaties up after results
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Shares in First Derivatives (FRST.L), which provides software and support services to the investment banking market, gain almost 7 percent after the company unveils strong full-year results, with revenue up 39 percent to 17.5 million pounds.
"First Derivatives has again reported results ahead of forecast, despite difficult market conditions," says Charles Stanley Securities in a note.
While the broker says it expects the current year to be one of investment for the future, it increases its operating profit forecast by 0.3 million pounds to 6.2 million pounds.
Charles Stanley repeats its "buy" rating on the stock, and lifts its target price to 290 pence from 230 pence.
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10:12GMT 20May2009-Melorio up on training growth
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Shares in Melorio (MLO.L) rise 11 percent after the vocational training company's full-year pretax profit more than trebles to 8.8 million pounds, largely down to strong growth in its construction and information technology training units.
The company says it is well positioned for future growth and has a strong pipeline of learners from existing and new employers.
"The group has seen significant increases in activity for its vocational training and has increased its IT training offering, which opens new markets for the group. It's exposure to construction and logistics training may have held back investor sentiment, but that has been proved misfounded," says FinnCap analyst David Buxton.
To see Melorio's statement please click on [ID:nRn1T5350S]
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