Video market round up for the week ending Friday, 26th July 2013

A week ending round up of the markets from Steve Briggs YouTube channel.

Included in this video is a look at the FTSE350 index, Oil and Gas producers, Shell, the banking sector and RBS.

Links:

Steve's YouTube site http://www.youtube.com/user/sjb5555.

Useful charts and analysis can also be found at http://www.flickr.com/photos/stevebriggspics/

Silverdell buys a bit of itself to save itself.

Silverdell made a further announcement today following on from its statement of why its shares were suspended on AIM a few weeks ago.

Silverdell announces that on 23 July 2013 its subsidiary, Euro Dismantling Services Ltd ("EDS") acquired the business and certain assets of Kitsons Environmental Europe Limited (In Administration) (the "Kitsons Business"), thereby keeping the Kitsons Business within the Group. The Kitsons Business will operate as a separate division of EDS, with the objective of maximising cost efficiencies between the existing EDS division and the Kitsons Business and to facilitate a seamless transfer of ongoing customer contracts and relationships to EDS.

The consideration for the acquisition is payable in cash on a deferred basis and is capped at £8 million (subject to downward adjustment (if applicable) following the completion of a valuation of the Kitsons Business by an independent valuer). The deferred consideration is intended to be satisfied from the Group's banking facilities at that time.

http://www.digitallook.com/news/rns/21047864-188986/SID-Acquisition_html?ac=,&username=,

Looks like what has turned out to be a fairly costly mistake has been made somewhere along the line. The company is getting support from its bankers, but it could end up looking to raise more cash at some stage. Shareholders might be wondering what the share price will look like when the suspension is finally lifted, but I suppose they can be thankful that they will still have something rather than nothing which many might have feared a couple of weeks ago.

IQE, trading update in

IQE reported today and perhaps the good news, at least for now, was in the price rise of the last couple of weeks as the shares finished down on the day having been up almost 10% at one stage.

The Board expects first-half performance to be ahead of market expectations, with first-half revenues approaching £63 million, EBITDA in excess of £10 million and net debt below £39m. This represents revenue growth of over 80%, and EBITDA growth of over 150% compared with the first half of 2012.

http://www.digitallook.com/news/rns/21046928-24795/IQE-IQE_plc_H1_trading_update_html?ac=,&username=,

Pretty good release, expected to be ahead of expectations for the first half, but then they end with the belief that the group is on track to meet market expectations for the full year. Qualcomm fears remain and given the effect on the share price since February of what the US giant might be planning, chances are that volatility in IQE's share price won't go away just yet.

IQE, still rising ahead of results

IQE report eagerly awaited results tomorrow that will have both bulls and bears of the stock on the edge of their seats. As reported here, IQE had been until recently under a constant short attack, the share price having fallen from a high of over 37p back in February to a low of around 18p in early July on the back of competition fears from US giant Qualcomm. According to shorttracker.co.uk, BlackRock still holds a 2.7% short position. That's fairly hefty considering the recent pre-result bounce in the share price to 27p today.

A good result tomorrow could easily send the shares higher, but I was slightly mystified by the BlackRock short position given the recent rise unless they are just trading this as a hedge? A check of the major IQE shareholders shows the following.

Blackrock Investment Management 37,076,124 5.74%.

http://www.iqep.com/investors-shareholderdata/

So, BlackRock have over 5% of the shares and are both long and short the stock. BlackRock Investment Management are down as holding 0.90% of that 2.70% short, the rest being held by other parts of the BlackRock empire. Perhaps it is just a hedge on Qualcomm fears?

Truth is no one knows what the company will announce tomorrow as so little has been said in the run up. Expectations are high that results will be in line or exceed expectations, so there is a risk after the recent bounce that there could be a sell off on the news if they disappoint. The results could still be fairly good and yet fall if there is profit taking on the news (trade the rumour, sell the news). Alternatively, it could break out further tomorrow, especially if expectations are exceeded. The IQE daily and weekly charts are looking more positive though, so, everything to play for.

Many brokers are still rating this as a 40-50p plus share, but it won't necessarily get there straight away, and we are still waiting for further details of what Qualcomm intends to do that started off the recent fall in IQE's share price. There could be further volatility ahead once Qualcomm makes up its mind.

http://www.guardian.co.uk/business/marketforceslive/2013/feb/22/iqe-semiconductors-competition-qualcomm

AIM shares in ISA's from 5th August

The date has finally been confirmed when AIM shares can be bought in UK tax free ISA's.

The government has confirmed that risky smaller shares will be allowed in stocks and shares ISAs from 5 August.

From August investors will be able to invest in shares listed on non-traditional stock exchanges, including the Alternative Investment Market (AIM) and lesser-known ICAP Securities and Derivatives Exchange (ISDX).

Investors will also be able to hold shares listed on alternative European stock exchanges.

http://www.citywire.co.uk/money/aim-shares-to-be-allowed-in-isas-from-5-august/a692123

Perhaps the key word here is "risky".  This has both its good and bad side (AIM shares in ISA'S, the dark side and buyer beware) so it's important to understand the level of risk, especially with AIM regulation being so weak.

Silverdell, finally a statement

It's been a couple of weeks since Silverdell announced their suspension of dealings on AIM, finally this morning a company statement has been issued.

The Group announced on 2 July 2013 that it had requested a suspension of trading in Silverdell's shares pending clarification of the Group's financial position. This followed the appointment of administrators to Kitsons Environmental Europe Limited ("Kitsons"), one of the Group's principal trading subsidiaries.

The Board is pleased to confirm that discussions with the Group's bankers, HSBC, have reached a satisfactory outcome. HSBC has confirmed that it remains supportive of the business and will be providing additional short term facilities to the Group.

The Board also confirms that Kitsons is the only Group company which is in administration, and that all other Group companies continue to trade as normal. The Board is extremely grateful to the Group's employees, customers and suppliers for their patience and forbearance.

Further announcements will be issued in due course.

http://www.investegate.co.uk/silverdell-plc--sid-/rns/further-re-suspension-of-dealings/201307160700073973J/

This basically confirms the main rumour that the problem was with with a winding up order against Kitsons and it has clearly taken some time to negotiate with their bankers to continue to support the group. The group says that it is "extremely grateful to the Group's employees, customers and suppliers for their patience and forbearance", which is all very well, but perhaps they should have mentioned shareholders of the company as well who have been kept in the dark for a couple of weeks.

Next will be the lifting of the suspension and the market reaction to events. If there has to be a fund raising, a dilution of the shares, then expect the share price to be lower, perhaps significantly lower.

http://sevenpillarstrading.blogspot.co.uk/2013/07/silverdell-whats-going-on.html

Video market round up for the week ending Friday, 12th July 2013

A week ending round up of the markets from Steve Briggs YouTube channel.

Included in this video is a look at Pearson, Fresnillo, Royal Dutch Shell, Weir group, Salamander Energy and RPS group.

Links:

Steve's YouTube site http://www.youtube.com/user/sjb5555.

Useful charts and analysis can also be found at http://www.flickr.com/photos/stevebriggspics/