Allocate Software (LON:ALL) (ALL, 77.5p, £48.79m) has updated on the first half to November 2010 with a good list of contract wins, even in the NHS arena where the group does acknowledge an impact from the restructuring. However the group is still happy with full year expectations (£5m PBT and 5.9p EPS) and we maintain the BUY recommendation with an 88.5p price target.
Billing Services Group (LON:BILL) (BILL, 11.5p, £32.2m) has announced that certain of its subsidiaries will be caught in a US Senate Commerce Committee investigation into “cramming” of phone bills (the addition of unauthorised charges). We are already sellers to 1p and drop the price target further to 9p to reflect the additional costs the group will inevitably incur. SELL
Ceramic Fuel Cells (LON:CFU) Limited (CFU, 10.75p, £129.15m) has announced the installation of a BlueGen gas to electricity fuel cell based device at Adelaide’s Central Market to offer free refuelling to up to 2 electric cars at any one time. The announcement demonstrates the lead CFU has on CWR - but is it worth an additional £70m market capitalisation – we think not. We maintain the Hold and suggest a switch into others, such as AFC Energy or CWR, would not be an unreasonable thought. HOLD
Ceres Power Hldgs (LON:CWR) (CWR, 69p, £59.46m) has achieved CE approval for its wall mounted fuel cell based CHP units. The announcement puts the group on target for trials in people’s homes from January 2011. We maintain a SPECULATIVE BUY recommendation.
Dewhurst (LON:DWHT) (DWHT, 345p, £11.42m) has acquired one of the two remaining stakes on ERM and Winter & Bain Manufacturing from Ed Park for a previously announced maximum of $2.017m. We see upside to the 10x level or some 403p so maintain the BUY recommendation.
RC Group (RCG, 29.75p, £89.86m) Sales trading for the year ended 31 December 2010 is in line with market expectations. Margin pressure has had an adverse impact on gross margins and operating profits in H2. Margin pressure is expected to remain under pressure in 2011. The business remains cash flow positive. The Board are aware of the tight working…
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