STOCKS NEWS EUROPE-Yell Group falls; Goldman cuts to "neutral"
STOCKS NEWS Reuters Results diary
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12:26GMT 25March2009-Yell Group falls; Goldman cuts to "neutral"
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Shares in Yell Group (YELL.L) fall 3.7 percent as Goldman Sachs cuts its recommendation on the directories firm to "neutral" from "buy", and slashes its target price to 15 pence from 65 pence, as part of a European media sector review.
Goldman says its global advertising forecast for 2009 falls to -14 percent from -9 percent.
The broker says that, on average for the sector, it reduces 2009 earnings per share estimates by 15 percent, but by over 40 percent for free TV, 8 percent for agencies, and 2 percent for professional publishers.
"Our new forecasts imply more material balance sheet issues for Yell and Informa than previously," says Goldman.
Informa shares (INF.L) are off 4.7 percent.
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
12:21GMT 25March2009-Transics falls after 2008 earnings
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Shares in Belgian transport logistics company Transics (TRAN.BR) drop 3.4 percent following the release of disappointing earnings.
The stock trades down 3.42 percent at 3.67 euros, hovering just above the all-time low of 3.60 euros it reached on Dec. 2 2008, and nearly 80 percent below its 52-week high of 18.30 euros reached on June 4 2008. The share underperforms the Belgian small cap index .BELS, down about 0.2 percent.
ING analyst Olivier Van Doosselaere says Transics's results prompt him to significantly revise his forecasts downwards, adding the results confirm there is no sign in the industry that points to a recovery in the second half of 2009. Van Doosselaere lowers his target price to 4.1 euros from 8 euros.
"Transics' guidance does not privde any comfort," adds Van Doosselaere, adding he keeps his hold rating for the company, noting "the exceptional growth potential of the company in an economic recovery."
Reuters Messaging rm://anne.jolis.reuters.com@reuters.net
12:17GMT 25mar2009-Rodriguez dips as debt news delayed
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Shares in Rodriguez Group (RDGP.PA) drop as much as 6.4 percent after the French seller of luxury yachts postpones its general meeting scheduled for Thursday and says it is still in talks with banks over the restructuring of its debt.
"It is more difficult for Rodriguez Group, which has no shipyards, than its competitors," says an analyst at Fortis. "They might have to go for a cash injection from the management, like what happened with Ferretti FRREF.PK and maybe Couach YACHT.PA."
"A concentration in this sector also seems unlikely," he adds. "A merging between two lame ducks would not change the problem."
Rodriguez Group stock has soared some 130 percent so far this year after plunging almost 94 percent in 2008. The stock has been highly volatile since debt talks were announced last December.
Reuters Messaging rm://michel.rose.reuters.com@reuters.net
12:01GMT 25March2009-UK small caps up 0.1 percent midday
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The FTSE Small Cap index .FTSC gains 0.1 percent in midday deals, faring better than both the blue chips .FTSE and the midcaps .FTMC, which shed 1 percent and 1.2 percent, respectively.
Air Partner (AIP.L) jumps over 13 percent after the private aviation services provider raises its interim dividend by 10 percent and says it is well placed to survive the economic downturn.
China-focused Griffin Mining (GFM.L) fall almost 5 percent after the company says it plans to make a C$27 million ($21.92 million) cash offer for Canadian base metals firm Ivernia Inc (IVW.TO).
For more on Air Partner double click on [ID:nLP270762]; for more on Griffin Mining double click on [ID:nLP184986]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
11:57GMT 25March2009-Severfield Rowen up as co maintains dividend
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Severfield Rowen (SFR.L) shares rise as much as 20 percent after the structural steel company maintains its total dividend for the year at 20 pence.
"The current share price is giving about 12.5 percent yield and the yield in the sector is about 8 percent, so you are getting a 50 percent premium," says analyst Jonathan Hurn of KBC Peel Hunt, who has a "hold" rating on the stock. "I think that's why people are buying."
But he says a deteriorating order book and a declining operating margin will provide an unwelcome headwind for Severfield Rowen over the next two years.
For company statement please click on [ID:nRn1Y4208P]
Reuters messaging rm://tresa.sherin.reuters.com@reuters.net
11:40GMT 25March2009-Delta up after "exceptionally good" results
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Shares in Delta (DLTA.L) gain over 5 percent after the industrial engineering company unveils a 66 percent rise in 2008 underlying pretax profit, beating market expectations, though it says its outlook for 2009 remains cautious amid the recession.
"Delta has reported an exceptionally good set of results for 2008," says Arbuthnot Securities in a note.
"All three segments have beaten our profit estimates and operating margins reached a record level for Delta, in spite of mixed market conditions," it says.
The broker highlights that cash generation has been "very strong indeed", with over 40 million pounds of free cash generated -- including the proceeds from selling stocks of material from the closed Delta EMD business in Australia.
Arbuthnot retains its "strong buy" recommendation, but cuts its adjusted earnings per share estimate for 2009 to 14 pence from 14.5 pence, with its forecast for 2010 at 14.7 pence.
For more double click on [ID:nBNG461279]
Reuters Messaging rm://tricia.wright.reuters.com@reuters.net
11:12GMT 25March2009-Allianz sees stock mkt recovery in H2 '09 or early '10
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Stock markets could recover rapidly once a turnaround comes, either in the second half of 2009 or early next year, says Michael Heise, chief economist at Allianz (ALVG.DE), Europe's biggest insurance company, whose Allianz Global Investors unit is among the world's leading asset management groups.
"But it could be quite a short bull-run rather than a five-year long rally," Heise says in a speech at a financial industry conference in the city of Wiesbaden, the capital of the German state of Hesse.
Slower economic growth in the years ahead, once the financial crisis is over, is the main reason why stock markets are unlikely to see a prolonged rally, Heise says.
Allianz expects the U.S. economy to shrink by 2 percent in 2009, euro zone gross domestic product to contract by almost 2.5 percent and growth in Japan of to slow by 5 percent. China should see positive growth to the tune of 5 percent, Heise says.
Government bond yields -- near or below 3 percent for benchmark 10-year maturities EU10YT=RR US10YT=RR -- are too low to be interesting for investors, but corporate bonds are attractive even though an increase in insolvencies is inevitable, Heise says, pointing to spreads of up to 900 basis points in the triple-B, still investment grade, segment.
Reuters Messaging rm://peter.starck.reuters.com@reuters.net
11:26GMT 25Mar2009-Mwana Africa jumps on Zimbabwe restart
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Shares in Mwana Africa Plc (MWA.L) jump 10.4 percent after the miner says it plans to restart gold production at its Freda Rebecca mine in Zimbabwe.
Mwana says the restart of mine is made possible by higher gold prices and after the new coalition government allowed gold producers sell gold on the open market and to hold foreign currency.
"There remains considerable political risk for mines in Zimbabwe which have largely closed down due to the current difficult political environment," Fairfax says in a note.
"However, the new procedures laid out by RBZ (central bank), the recent political progress and the official acceptance of rand and US dollar as acceptable currencies within the country gives hope that the resources industry within the country can begin to recover."
To see Mwana Africa's statement please click on [ID:nRnsY4201P]
Reuters messaging rm://eric.onstad.reuters.com@reuters.net
