07/08/2023

Reabold Resources (RBD), the oil & gas investing company, provided an update on developments in the approvals process for the onshore Colle Santo gas field in Abruzzo, Italy. The company said it is encouraging to note the favourable indication from UNMIG that early work on testing and monitoring can begin at the Colle Santo gas field. Its focus now turns to finalising this stage of the approvals process with a view to commencing operations later this year once all necessary permits are in place. It looks forward to updating its shareholders with further progress on the project throughout the year.

Comment: While the share price / valuation disconnect continues, we see that RBD is still very much getting on with the job as far as Colle Santo. Ideally, the newsflow here will start to turn around sentiment towards the shares.

Prospex Energy (PXEN), the AIM quoted investment company, announced that Po Valley Energy Limited has successfully completed the ramp-up and commissioning process at the Podere Maiar-1  gas facility of the Selva Field. The company said it was very pleased that Po Valley Energy has completed the ramp-up and commissioning process at the PM-1 gas facility of the Selva field.  The final transition to ongoing production at PM-1 is underway which marks a major milestone for both Po Valley and Prospex.  The ongoing production from PM-1 is an outstanding platform from which the Joint Venture can actively pursue the exploration and development of nearby lookalike wells.

Comment: Today’s RNS reminds us that PXEN has done more than enough to warrant that the pullback in the stock from earlier this year should have run its course. Ideally, the latest milestone at PM-1 underlines this point to the market.

Blackbird (BIRD), the technology licensor, developer and seller of the market-leading cloud video editing platform, Blackbird®, invited shareholders, investors and partners to register their interest in attending a special event on 13th September 2023, for an exclusive insight into the development of the Company’s Creator SaaS product.

Comment: Apart from having us looking forward to some bubbly and nibbles on September 13^th,  today’s RNS explains the recent sharp recovery in the BIRD share price, something which may be re-ignited in the run up to the special event.

Metals One (MET1), which is advancing battery metal projects at brownfield sites in Finland and Norway, announces that the Company was informed on 4 August 2023 that Jonathan Owen, Chief Executive Officer, and a director, of the Company, purchased 22,687 shares at a price of 4.36p on 3 August 2023, 16,986 shares on 4 August 2023 at a price of 4.34p and a further 9,512 shares on 4 August 2023 at a price of 4.71p. Owen now has 0.53% of the company.

Comment: It is always good to see directors leading from the front in terms of share buying, especially doing so, in the case of MET1, during the first week of their company being listed on the market. One would imagine that the significant newsflow will arrive sooner rather than later.

Roquefort Therapeutics (ROQ), the Main Market listed biotech company, announced the successful development of new siRNA sequences and new patent filing for its family of novel anti-cancer siRNA therapeutics. The company said it was encouraged by the recent commercial validations of both siRNA as a therapeutic modality and STAT-6 and SH2 as highly attractive medicinal targets. Its business development remains active in what is becoming an attractive market with current deal volumes 150% higher than in Q2 2022 and M&A transactions forecast to exceed the levels seen in 2022.

Comment: Today’s patent announcement from ROQ explains the recent rebound in the company’s share price, with the icing on the cake being in improvements on the business development front. One would expect the stock’s recovery to accelerate.

Fulcrum Metals (FMET), a company focused on mineral exploration and development in Canada, announce that it has entered into a mineral claim purchase agreement made between the Company, its wholly owned subsidiary Fulcrum Metals (Canada) Ltd and TSX-listed 1911 Gold Corp.  (TSXV:AUMB) to acquire a 100% interest in the Tully Gold project located in Timmins, Ontario. FMET said Tully represented a rare opportunity for Fulcrum to acquire 100% of a highly prospective gold project with a historical resource reported in line with NI-43-101 requirements, no significant annual exploration work requirements, and significant upside potential in a truly world-class mining camp.

Comment: The market has thus far been rather harsh on FMET, especially given the quality of its portfolio. The fact that it has just added to it, may alert more to the stock’s potential, especially at current levels.

Cordel Group (CRDL), the Artificial Intelligence (AI) platform for transport corridor analytics, provided an update on full-year trading and activities. The company expects to report revenue for the year ending 30 June 2023 of c. £3.0 million, subject to audit confirmation, representing growth of 32% over the previous corresponding period (2022: £2.27 million). The FY23 audited results are expected to be announced during October 2023 and are expected to be in line with market expectations. The company said it was delighted with its achievements in the 2023 Fiscal Year, including its major breakthrough into the US market and continuing strength in the UK. It is now positioned and resourced for accelerated growth.

Comment: It is always pleasing to cover dark horse stocks in the RNS Hotlist, and with its 32% revenue bump we have CRDL in the spotlight. The US growth looks to be a key factor in the improvement.

Chrisite (CTG) said it expects the year to end December 2023 to be materially below expectations in today’s Trading Update. There are continuing delays in contractual exchanges in its agency and advisory business and they hope that when Interims are reported in September more normal exchanges and invoicing will resume. Last year revenue increased 13% to £69.2m and PBT was £4.42m with an EPS of 12.32p and a 3.75p dividend, which gave it a p/E of 12x and 2.2% yield. CTG can trace its origins back to 1846, and have a unique range and combination of professional business services from its 40 offices across the UK and Europe helping clients buy, operate, develop, and sell their businesses. There are two complementary business divisions: Professional & Financial Services (PFS) and Stock & Inventory Systems & Services (SISS). Its clients are in catering and specialist markets in the hospitality, leisure, healthcare, medical, childcare & education and retail sectors, one of its clients was Wilko.

Comment: There is significant operational leverage as there is a high proportion of fixed costs but there is net cash of £7.2m so it  is not on mortal  danger. This profits warning is a depressing sign of this times, underlining how there has been a sharp division between the companies being able to withstand current economic conditions, and the rest. One would review potential recovery progress nearer CTG’s  September’s interims.