Pre 8 a.m. comments

Today should be interesting, as the Cyprus banks apparently re-open, with capital controls. Given that bank deposits are no longer safe, there is no logical reason for anyone to leave money in any Cyprus bank, therefore surely a bank run is not avoidable, it's inevitable?

The only question is whether it spreads to other southern European countries. If I had money in a Spanish or Italian bank, I would have withdrawn it by now. If they can plunder bank accounts once, then they can do it again, and surely this is a dangerous development that seriously undermines the whole concept of banking - i.e. that deposits are safe? Anyway, I remain long of Gold, and am very surprised it has only traded sideways in the last couple of weeks.

 

Toy train company Hornby (LON:HRN) had problems with its supply chain (over reliance on one supplier who messed up production) about six months ago. They today issue an in line with company expectations trading statement, which isn't a lot of use because there don't seem to be any market forecasts for the current year ending 31 Mar 2013. Although it does suggest that things aren't getting any worse.

They also mention broadening of the supply chain, new products, and management succession planning. Without any forecasts I can't value it, so will have to wait for the results to be issued before I can comment further. The trend of profits has been steadily declining since 2008, so it looks like a turnaround plan is needed. These performance & valuation charts don't inspire me at a £30m market cap, plus about £6m in net debt:

 

I see that Regenersis (LON:RGS) has announced a Placing to raise £6.9m of fresh cash, at a respectable price of 209p, so clear Institutional demand there for the shares since there is no discount to the current share price, which has been very strong - more than doubling in the last six months.

Existing holders are also Placing 893,070 shares on top of the new shares being issued. There is not much dilution for existing holders, as the new shares only comprise 6.6% of the enlarged share capital, so nothing to worry about. The cash raised is for working…

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