Alexon Group (LON:AXN)  (AXN, 21.25p, £31.26m)is the ladies clothing retailers trading under six womenswear brands. Weak consumer confidence and uncertainty surrounding the UK economy drove l-f-l sales down 5.4% for the 19 weeks ended 12 June 2010. An increase in promotional activity drove margins to also decline in the period. We are disappointed by the group’s performance, especially when comparing it to its peers. The group is focussing on turning around the business. The benefits of the some store refits, expansion of retail outlets (opened 34 new outlets) and invest in online capabilities are slowly beginning to bear fruit. The group still has a long way to go. The remainder of the year will continue to be challenging with high unemployment, the World Cup, increases in taxes and interest rates and a possible double-dip, all negatively impacting consumers spending. For the current financial year, the market forecasts a PBT range of £1.0m - £5.0m and EPS of 0.8p – 5.1p. We believe the results are likely to be at the lower end of the forecasts. 2012 will be the key year to represent the benefits of the turnaround strategy. We reiterate our HOLD recommendation.

Caspian Hldgs (LON:CSH) (CSH, 0.45p, £1.65m) In an operational update Caspian has highlighted its interest, via 50% Black Gold Inc shareholding, in US on-shore oil production. Black Gold is acquiring leases in low volume production “sipper” wells with existing infrastructure, initially in the Irvine field in Kentucky, and already has several wells producing some 90-100 barrels or oil per month. Black Gold has recently installed a central gun barrel oil/water separator and expects meaning cashflows to be generated as production increases. Caspian is pursuing other such opportunities already identified. The group is continuing to fight the Kazakhstan’s Supreme Court’s ruling confirming the revocation of Taraz LLP’s rights to the Zhegeldy oil field, any success will fall to the bottom line as the group has fully written down the value. The group also announced a £0.2m placing at 0.25p, including £50,000 from Executive Chairman Michael Masterman whose shareholding will increase to 36.24%. SPECULATIVE BUY. N.B: HB Markets act as broker to Caspian Holdings.

Chaarat Gold (LON:CGH) (CGH, 43p, £48.55m) Management has stated that operations in Bishkek in Bishkek and the North West of the country are unaffected by the developments near Osh in the south of the country. At least…

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