It has been another good week for the Red Hot portfolio. You’ll find all the news below: Forum Energy is on the move, and ZOO digital has achieved our price target. Sirius is edging down towards its BUY price, so sit tight!
Of course one of the most exciting stories in the Red Hot Penny Share portfolio at the moment is Avanti Communications. We are literally only a few months away from the big trigger event for this company – the launch of the Hylas-1 satellite.
I’ve compiled a special report on Avanti – spelling out the tremendous opportunity that Red Hot Penny Share readers are in on.
You must enter this password to read it: launchpad.
But before we move on to today’s update, I need your help on something.
I’m thinking of redesigning the back page of the monthly issue. So I need your input: what changes would you like to see? What crucial info is missing? And where can we cut out chaff?
Specifically:
1) Do you find the list of ‘Recent Portfolio Changes’ useful?
2) Do you find the ‘Coming Up’ list of forthcoming announcements useful?
3) Would you like me to show the target prices in the table?
4) Do you find the industry classification (e.g. ‘Building Materials’) of use, or would you prefer a more specific description of each investment case?
5) Do you understand the distinction between ‘Tom’s Top Tips’ and the rest of the Red Hot Portfolio?
6) Can you suggest any other ways in which format of the back page could be improved?
Please send your responses to me at rhps@moneyweek.com, and once I have collected these I will make whatever improvements I can (given that space on the back page is of course limited).
Now on to the week’s news:
| This Week | This Month | |
|---|---|---|
| RHPS | +0.6% | +7.7% |
| FT Small Cap | +1.9% | +3.9% |
| AIM | +4.1% | +7.4% |
| This Week’s Climbers: | |
|---|---|
| ZOO Digital | +26% (see below) |
| Forum Energy | +21% (see below) |
| Bango | +17% |
| Software Radio Technology | +15% |
| This Week’s Fallers: | |
|---|---|
| Sirius Exploration | -22% (see below) |
| Medgenics (MEDU) | -14% (see below) |
| Accsys Technologies | -10% |
| Clearstream Technologies | -10% (see below) |
CLEARSTREAM TECHNOLOGIES (CTN): Clearsteam’s ReeKross family of catheters has been approved for by the Food & Drug Administration for sale in the USA. These are used where blood supply is interrupted by heavy calcification of the blood vessels. Their combination of strength and flexibility makes them superior to traditional angioplasty catheters. The share price has been rather dull, but Clearstream should be moving into profit this year and this breakthrough into the US market is a step forward. BUY UP TO 30p
(Five year performance: 05 -42.69% | 06 +12.24% | 07 -35.45% | 08 -45.07% | 09 +25.64% | 10 -8.19%)
EKF DIAGNOSTICS (EKF): Annual results from EKF add little to the story that I described in the August issue. EKF is looking to broaden its business away from its Eastern European roots and into world markets. The City is also expecting EKF to make further acquisitions. The diagnostics market is growing fast and EKF has a proven management team. BUY UP TO 23p
(Five year performance: 05 -50.00% | 06 +20.00% | 07 -57.14% | 08 -8.33% | 09 +130.30% | 10 +22.08%)
FORUM ENERGY (FEP): The share price has made a sudden move, but it is hard to say why. According to reports from the Philippines the Department of Energy is reviewing all service contracts including that which Forum holds over block SC72, potentially a major gas field – but it is hard to see why this would kick start the share price. Turnover in the shares has been low, and Forum has been playing its cards close to its chest. However I suspect that this is a case of ‘no smoke without fire’ and that probably a story is about to emerge. The shares are now well above my buy limit so HOLD
MEDGENICS (MEDU): Although the share price of the MEDU unrestricted line of shares has been falling, the price of the MEDG line has been ticking up. In other words the gap is closing and since, as I have said in the past, both classes of share carry equal rights this is only to be expected. Medgenics is currently raising finance through the issue of convertible debentures. In a sign of confidence three directors have elected to exercise their share options, effectively contributing more cash to the business. BUY UP TO 13p
(Launched in 2009: 09 +141.67% | 10 +85.19%)
SIRIUS EXPLORATION (SXX): A study by the University of Queensland has found that CO2 can be disposed of by first combining it with salt to form sodium carbonate and then safely storing it in empty underground mine caverns. As I said in the September issue, Sirius’ underground caverns could be used either to temporarily store natural gas; to compress air that could be released to drive turbines; or as a store for CO2. The advantage of the latter is that it provides a use for the salt that Sirius mines along with the potash. This is an encouraging development, but as a commercial venture is a long way off and cannot happen before potash mining begins.
Look out! The share price is edging back towards my 5.5p buy limit. If you want to get into Sirius, place an order with your broker with a 5.5p limit and prepare to be patient. BUY UP TO 5.5p
(Five year performance: 06 -41.30% | 07 +88.89% | 08 -88.24% | 09 +550.00% | 10 +25.64%)
ZOO DIGITAL (ZOO): You may have spotted that ZOO has now hit 60p, the target price that I set when I tipped the shares in April. But as I said in the last issue it is important that we make our winners count. So for the time being, HOLD
Good investing,
