Angel Biotechnology Hldgs (LON:ABH) (0.22p / £4.7m)
Angel Biotechnology, the high level contract manufacturer of biologics, announced a significant new contract win with Materia Medica, the sixth largest Russian pharmaceutical company, with whom they already have existing contracted business. This contract for £1.5m again validates the high value of Angel’s ability and know-how in Good Manufacturing Process, the established regulatory standard for stem cell research. The contract, for GMP manufacture and process development, will run until 2012. Angel’s ability to navigate the complex regulatory environment for advanced biologics is without doubt class leading. Having completed a fund raise in February for £1.425m Angel has the cash to ramp up, and this contract is a demonstration of that. At the current share price,
Filtronic (LON:FTC) (33.3p / £25.27m)
Filtronic has announced that trading for the start of H2 from 1 December 2009 has been below expectation because of delays in telecom infrastructure projects and as a result the group expects to report a small loss for the full year (H1 PBT £0.1m). The group cautioned that the demand outlook remains constrained for the summer with customer inventories overhanging the market. When we last reported on Filtronic in January we took the view that the lack of visibility of short term news flow to drive the share price boded ill for share price appreciation making the stock vunerable, in our view, to an opportunistic private equity bid. There is a fundamentally interesting business here and with £16.3m of cash still on the balance sheet we continue to hold this view.
First Derivatives Plc (LON:FDP) (295p / £45.38m)
First Derivatives has secured a contract with AFT, a leading Japanese online FX broker, to provide FX software solutions. The contract is a transaction based agreement, whereby First Derivatives will benefit from a proportion of the revenues generated through the use of the system by AFT's client base. This is good news, further expanding its geographical spread into new, growing and large territories. Trading at a discount to its peers in the software and computer service sector, we believe First Derivative is undervalued on a 2011 rating of 8.2x and a dividend yield of 2.8 per cent.
Herencia Resources (LON:HER) ( 0.62p/£5.85m)
Herencia has attracted the global metals group Nyrstar…
