News & Tips: Vertu Motors, Speedy Hire, Greenko, RBS, Cable & Wireless …

October 17, 2012 by  
Filed under Wind Energy Tips

Markets are more subdued this morning

Equities are steady after yesterday’s gains but the Trader Dominic Picarda is beginning to believe that we are at the start of a more substantial uptrend.

IC TIP UPDATES:

Motor dealer Vertu Motors (VTU
) has issued strong interim results and said it now expects to beat forecasts for the full year. In the first half revenues rose by 14.8 per cent and profits by 26.8 per cent to £5.2m. We maintain our buy rating.

Tool hire business Speedy Hire (SDY
) is also enjoying some positive momentum according to its latest trading update with underlying revenues up 5.3 per cent in the six months to September. International growth has been particularly strong, albeit from a low base, with sales up 77 per cent. Buy.

Indian renewable power business Greenko (GKO
) says it expects to report a 30 per cent uplift in revenue when it issues first half results and that its extensive development programme, which now includes a number of 100MW wind farms, is on track. Total output should reach 250MW by the end of next year then ramp up to 1,000MW by 2015. We keep as a buy.

KEY STORIES:

Royal Bank of Scotland (RBS
) has announced its exit from the government’s Asset Protection Scheme, the multi-billion insurance policy which kept a number of UK banks in business during the credit crunch. The bank has paid out £2.5bn in premiums to the government over the duration of its membership of the scheme.

Cable Wireless Communications (CWC
) has announced that it is in talks regarding the sale of its 51 per cent interest in Macau’s largest telecoms business Companhia de Telecomunicações de Macau. Reports suggest the deal could be worth $800m.

Online gaming business 888 Holdings (888
) has issued solid third quarter trading figures with revenues up by 7 per cent, giving a 27 per cent increase in revenues for the first nine months of the year. Strong performance in poker and emerging offering, which includes sportsbook and business to business, continues to be the main driver.

Like its diversified mining peers, Xstrata (XTA
) has enjoyed a strong uplift in production volumes in the opening half of the year, with thermal coal up 13 per cent. But lower coal prices have impacted this business since July, prompting a restructure of Australian operations. During the second half the company expects to commission 10 new projects across its range of commodity extraction businesses.

BHP Billiton (BLT
) has also reported a ‘robust’ operating performance across its portfolio with further increases in volumes scheduled during the second half. It has 15 large developments scheduled to come on stream by 2015 but has, in recent months, also mothballed some projects until economic conditions improve.

South African IT hardware business Datatec (DTC
) has announced solid first half performance with revenues up by 7 per cent to $2.6bn and earnings up 8 per cent to $92m.

OTHER COMPANY NEWS:

Coastal Energy (CEO
) has announced a further oil discovery at the Songkhla A-13 well. It has also increased its credit facility and completed the conversion of a mobile offshore production unit.

Shares in Bullabulling Gold (BGL
) have slipped this morning after the West Australian gold explorer announced that cash costs of production at its proposed mine will be higher than expected and mineralisation grades may be lower than originally forecast.

READ MORE…

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