Agatha Christie… Conan-Doyle… Edgar Allan Poe… I love a good mystery...
This must be why I love the Penny Sleuth, because it allows me to uncover clues and solve mental conundrums on a daily basis - much like a real detective. I even have my very own Bloodhound called Rex - well, he’s a Springer Spaniel really, but with all this sleuthing he’s developed some delusions of grandeur…
Rex and I have been busy this week – and I thought I would fill you in on some of the latest gossip that is swirling around the City trading desks…
It’s always good to know when a stock overhang is cleared... As you are probably well aware, an overhang is where an individual, but more likely an institution, shifts a large line of stock. This always depresses the share price as the supply of the shares is greater than the demand for them. It’s basic economics. So, when the overhang is cleared, the share price should start to move forward again.
This is exactly what has happened with Avon Rubber, shares which bounced 6% amid talk that Cazenove had cleared its overhang…
Elsewhere, hedge fund Polygon is rumoured to be stake building in property fund management group Teesland, after almost 11m shares changed hands on Friday. If Polygon managed to buy up 10% of the company, it will be able to block the offer of 159.25p a share from Scamp, the investment operation of Sheffield United chairman Kevin McCabe.
At the end of December, Scamp said it had received 64% acceptance from Teesland shareholders. The deal is worth around £200m, but you may well see the fund ruffling a few of McCabe’s feathers in the not too distant future...
Other news…
I have heard on the trading grapevine that the company currently in talks with derivatives trading and risk management software company Ffastfill is information giant Reuters.
The company’s shares jumped 15.7% last week on news that they had received a preliminary approach. Watch this space for more revelations...
Caspian Oil announced positive levels of oil flow, working out to be roughly 35 barrels of oil a day, from its recently-drilled well. Caspian will focus on increasing production and profitability from its existing wells and it will start its next drilling programme in the middle of the year…
Finally, another favourite stock of mine, Asian Citrus Holdings, reported a solid increase in its winter orange crop.
The group is the largest orange plantation holder and operator in China. It aims to pile ‘em high and sell ‘em cheap – growing quality oranges to be sold at an affordable price, strengthening its position as the leading orange grower and distributor in China...
Rex the pseudo-Bloodhound is getting reckless. He has just dropped his lead at my feet – a subtle hint if ever I have seen one… It looks like it's time for some more sleuthing…
Until next time,
Melissa Carroll
for The Penny Sleuth
P.S. If you want to follow the tales of a small company investor, and uncover the hidden gems of the stock market, then sign up for the Penny Sleuth e-letter. It won’t cost you a penny…
