STOCKS NEWS UK-Nighthawk down on Kansas project sale
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15:35GMT 30JUN2009-Nighthawk down on Kansas project sale
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Shares in Nighthawk Energy (NGTE.L) fall 9.3 percent as the U.S.-focused energy company sells its 50 percent interest in the Centurion project in Kansas to Osceola Hydrocarbons for $5 million in cash, plus an annual royalty equal to 5 percent of the gross oil and gas revenues.
Analysts at broker Daniel Stewart downgrade their price target to 88 pence from 102 pence, while retaining their "buy" recommendation, saying that although the company loses any upside from Centurion, it gains working capital from the deal.
"Nighthawk forfeited the upside associated with developing Centurion, which we estimate at 35 million pounds ($58 million), (equity value less transaction price) to concentrate on its core projects," they say in a note.
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Reuters Messaging rm://paul.sandle.reuters.com@reuters.net
13:31GMT 30JUN2009-Hill & Smith gains on Benelux disposal
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Shares in Hill & Smith Holdings (HILS.L) gain 9.3 percent after the safety barriers and street lighting manufacturer announces the sale of its minority investment in Benelux galvanizing services business, Neholl BV, for 5.8 million euro in cash.
Arden Parners, in a note, points out that Neholl had been held as an asset for sale by the UK firm, hence its results were not consolidated so there will be no loss of earnings from the disposal.
The broker notes that Hill & Smith will book a 1.1 million euro profit on the sale which it anticipates will be taken as an exceptional item.
Arden points out that Hill & Smith also announced that trading for the half year has been in line with expectations, with early actions to cut costs having protected areas of the business such as construction-related operations and galvanizing which have been impacted by the slowdown.
The broker retains its "buy" stance and 280 pence price target on Hill & Smith shares which it thinks offer value on a price earnings and enterprise value /EBITDA basis and carry a solid and progressive dividend.
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Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
12:51GMT 30JUN2009-Monetise up on Visa deal, fund-raising
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Shares in Monetise (MONI.L) jump more than 19 percent higher after the mobile money specialist accompanies a pre-close trading update with news of a global alliance agreement with Visa (V.N) and a 5.1 million pounds fund-raising, led by Visa.
Investec says in a note that the announcement provides a major boost to Monitise's short-term revenue visibility and long-term strategic position.
The broker says the deal helps underpin near and medium-term forecasts, and associates Monitise with Visa on a global basis, "clearly a very strong foothold into every geography, and a major reference."
Investec says, despite the difficulty in forecasting the short term, its fundamental belief in the business, its prospects and its strategic value is undiminished.
The broker says the only cloud to the, otherwise very large, silver lining is a modestly disappointing trading update, with Monetise's revenues for the year to June 2009 some 0.6 million pounds shy of Investec's expectations.
Investec reiterates its "buy" stance and 10 pence price target on Monetise.
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Reuters Messaging rm://jon.hopkins.reuters.com@reuters.net
11:16GMT 30JUN2009-YouGov down; Charles Stanley "reduce"
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Shares in YouGov (YOU.L) fall 4.6 percent after Charles Stanley Securities initiates coverage on the company with a "reduce" recommendation, in a review of online market research companies.
"YouGov has suffered as it has struggled to digest three acquisitions made at the start of FY08 and then was caught out by the speed and depth of the downturn when it was investing for growth," Charles Stanley says in a note.
The broker says the medium-term prospects for YouGov are far from clear, "depending on whether the company can rediscover its previous growth path and recover in margin terms."
Charles Stanley also initiates coverage on Research Now (RNOW.L), with a "buy" recommendation, ahead of the company's first-half results on Wednesday.
"(Research Now) should show underlying revenue growth of 14 percent and an improving margin performance, which we regard as impressive given the prevailing economic conditions," says the broker, which believes the firm's share price has upside "given the excellent growth prospects".
Research Now's shares rise 0.8 percent.
Reuters Messaging rm://tricia.wright1.reuters.com@reuters.net
10:49GMT 30062009-FTSE small caps up 0.1 pct at midday
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The FTSE small cap index .FTSC gains 0.1 percent in mid-session trade as the FTSE 100 .FTSE and the FTSE 250 .FTMC both shed 0.1 percent, with the UK market experiencing light volumes.
Newspaper publishers Johnston Press (JPR.L), Trinity Mirror (TNI.L) and Daily Mail and General Trust (DMGOa.L) gain between 2 and 16.7 percent on the back of covenant news and a bullish note from UBS. [ID:nLU380868]
Management Consulting (NZX.L) fall 16.7 percent as the company warns it may miss its full-year year forecasts due to prevailing market conditions, prompting Panmure Gordon to reduce its 2009 earnings estimates. [ID:nLU664096]
Reuters Messaging rm://david.brett.reuters.com@reuters.net
