Advanced Power Components (LON:APC) (APC, 15.5p, £3.90m) Trading update for the year ending August 2010 confirms results will be in-line with market expectations. An audit review found an overstatement of stock of some £0.26m in the 2009 accounts. The group has managed to create a cash inflow of some £0.75m by close action on stocks and debtors. Current order intake is at a healthy level, though post the strengthening of the sales team the timing of the opportunities remains uncertain. On 15xPER for the year going historic and some 11x PER following we see upside to 22p over the next year. SPECULATIVE BUY  

Forbidden Technologies (LON:FBT) (FBT, 34.5p, £28.00m) has raised £1.6m from a placing of 4.847m new shares at a no discount to the 33p mid price. The cash will clear the debts, provide a cash reserve for growth, reduce directors below the 75% level, and has introduced a number of institutions to the opportunity. We continue to be excited about this video editing/management control software suite that uses cloud computing as we expect significant progress in the relatively short term with TV/film studios as well as with mobile phone producers/cellular service operators. SPECULATIVE BUY

Probability (PBTY, 52.0p, £11.27m), the leading mobile phone gambling specialist, reports a positive trading update to September 2010. The launch of new products, increased investment in marketing and customer retention combined with higher income from business-to-business partnerships has driven rapid revenue growth. Total cash deposited by players into their gaming accounts in September 2010 was 27.1% higher than April 2010. Total wagers placed in September 2010 were 54.9% higher than in April 2010. The total number of players in September 2010 was 11.2% higher than April 2010. The launch of the iPhone game has been successful, representing 12% of all cash deposits in less than three months. The group has already reduced the cost base. Following the award for remote gambling licence by the government of Gibraltar will achieve further efficiencies. Probability will transfer day to day operations from Alderney, where it is currently licenced, to Gibraltar as soon as is practicable. We are impressed by the group’s performance. We believe the appointment of John Anderson, as the Non-Executive Chairman of Probability (Gibraltar) Limited, strengths the Board. Anderson is a Non-Executive Director…

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