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STOCK MARKET NEWS – RNS HOTLIST

RNS Hotlist June 16: East Star, Genedrive, Invinity, Lift Global Ventures, Sealand, Tower Resources

16/06/2023

RNS Hotlist June 16:  East Star, Genedrive, Invinity, Lift Global Ventures, Sealand, Tower Resources

Lift Global Ventures (AQSE:LFT), an investment company focused on financial media and the energy sector, updated on its investee company in the energy sector – Trans-Africa Energy Limited (TAE). TAE has entered into a Joint Development Agreement with Ghana National Gas Company Limited, granting TAE a majority and managing, stake in the design, construction, management and operation of four infrastructure projects onshore in Ghana related to the processing and transporting of natural gas. The first of these projects is the c.259 km Takoradi to Tema Pipeline. LFT said  Company is extremely pleased to see the progress being made by TAE and it will be delighted to update shareholders as further advancements are made.

genedrive (GDR), the point of care molecular diagnostics company, announced its participation in a multi-partner grant award (DEVOTE) from Innovate UK and the UK government Innovation Accelerator programme  with funding expected to be made available to further  the validation and implementation of the new Genedrive® CYP2C19 ID Kit pharmacogenetic test in a time critical clinical setting. The company said DEVOTE is an amazing opportunity to engage formally with a health system like the NHS to demonstrate the effectiveness of a new diagnostic approach.

Comment: For any company in the healthcare space it goes without saying that interaction with the NHS gravy train is the gold standard, a point underlined by GDR today. Hopefully, this is the kind of development that could address the issue of the NHS being a second class service at a first class cost.

Tower Resources (TRP), the AIM-listed oil and gas company with a focus on Africa, provided an update on activity in respect of license PEL 96 in Namibia, covering offshore blocks 1910A, 1911 and 1912B and, in particular, the recent basin modelling work undertaken over the license area. The company said it was excited by the results of the basin modelling work and its indication of the prospectivity of Tower’s licenses in Namibia. It explains neatly the results of the Norsk Hydro well, the source of the lacustrine oil found within it, and the reasons why that oil found its way into that well and subsequently migrated away from it.

Comment: It probably needs rather more than one technical update from TRP to turn the tide as far as the share price performance, but at least we have what could be a series of more constructive updates.

Invinity Energy Systems plc (IES), a manufacturer of utility-grade energy storage, confirmed that its full results for the year ended 31 December 2022 will be published by 30 June 2023. The company said that as part of the audit process, the cost of fulfilling previously signed contracts has been reviewed and the company was pleased to announce that this is likely to result in a significant reduction in the provision for contract losses which was previously recorded. Therefore, Invinity expects its reported gross margin loss as well as the loss before tax to be materially better than was anticipated. The Company confirmed a cash balance of c.£15.4m as at 31 May 2023.

Comment: To the existing stock market phenomena of profits warnings and raised profits guidance, we have IES’s improved guidance, something that could be colloquially described as things being rather better than expected. The other point to note is that the company is sitting on the type of large cash position that most of its peers would given their eyeteeth for.

East Star Resources (EST), which is defining mineral resources in Kazakhstan for the energy revolution, announced the results of the mineralogy and leaching studies of eight samples from the Talairyk rare earths project in Kazakhstan. The company said sequential leach testing clearly demonstrates that a majority of REEs have been liberated from primary minerals during the weathering process and are now associated with other mineral phases. Its understanding of the minerology and potential for economic extraction of rare earth elements from the Talairyk deposit has grown significantly and, while not definitive, it will allow it to plan a low-cost assessment of what additional test work is required to identify if an economic process to leach rare earth elements from the weathered material is possible.

Comment: EST serves up a rather technical update, but at least we are reminded that Alex Walker and the team remain very much on the cash in terms of proving up the significant resources the company is sitting on.

Sealand Capital Galaxy Limited (SCGL) announced that following the publication of its Annual Report and Financial Statements for the year ended 31 December 2022, the suspension of the Company’s ordinary shares will be lifted and trading will recommence at 07.30 a.m. today.

Comment: For those who may have perhaps missed the fact that Sealand shares had been suspended, they are returning from suspension today.

OnTheMarket (OTMP), the majority agent-owned company, announced the launch of Your Property Services (YPS) a sales and lettings data nurturing service to help estate agents generate additional revenue and win more instructions through valuations. The company said it was delighted to be providing agents with Your Property Services as an extension of their branch. Its dedicated team of specialists are experts in taking applicants, potential sellers and landlords and nurturing leads to serve them ‘oven ready’ to its agents for a valuation appointment, for example, or to find the most willing and able buyers and tenants. This new highly cost-effective service levels the playing field and helps agencies maximise the value of a database they’ve spent years building, but don’t have the resources to fully exploit.

Comment: It is certainly an interesting time to be alive for companies exposed to the real estate market, with the Bank of England on a kamikaze interest rate hiking spree, which certain cynics might be forgiven for thinking is its wake of reducing the Government’s chances at the next election. As far as OTMP’s latest initiative, one can be sure that it answers the concerns in the community at large that estate agents may not be earning as much as they should in the current economic environment.

Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.

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