Senin, 02 Juli 2012

MARKET REPORT: Forbidden Technologies joy in YouTube tie-up

MARKET REPORT: Forbidden Technologies joy in YouTube tie-up

By Geoff Foster

PUBLISHED: 16:39 EST, 2 July 2012 | UPDATED: 16:39 EST, 2 July 2012

British technology entrepreneur Stephen Streater first retired at the tender age of 33 with $4million in his sky rocket after selling Eidos, the gaming software group he co-founded. Soon after in 1998 he launched Forbidden Technologies, a company that uses the  internet, or the cloud, as a platform for super-slick video-editing software.

The company was floated on AIM at 4p and touched 280p during the dotcom boom before the bubble burst in a big way. Streater retained a 72 per cent stake and long-suffering shareholders could now yet be rewarded for their loyalty.

Forbidden’s shares jumped 5p, or 24 per cent, to 25.5p on hearing that YouTube had signed up its services for ‘a major sporting event being held in London this summer’. Could that be the Olympics?

MARKET REPORT: Forbidden Technologies joy in YouTube tie-up


YouTube is to use its flagship FORscene software product which allows video to be edited as it arrives in real time, before  preparing it for broadcast in high definition.

A leading industry analyst said: ‘If Forbidden can demonstrate that they can commercialise the opportunity with YouTube and sign similar agreements then there is major upside for the shares.’ 

Lonrho was another small-cap stock attracting a sizeable interest. Shares of the investment company firmed 0.75p, or 11 per cent, to 7.48p on hefty turnover after completing the separate listing of its airline division, to be renamed ‘Fastjet’, which sees Sir Stelios Haji-Ioannou’s easyGroup Holdings becoming a leading shareholder in the airline.

Shrugging off the banks’ escalating Libor scandal, the Footsie got the third quarter off to a good start. It rose 69.49 points to 5,640.64, while the FTSE 250 jumped 161.34 points to 11,093.47. Dealers remained in a fairly bullish mood after EU leaders agreed at the end  of last week to ease repayment rules for emergency loans to Spanish banks and relax conditions on potential help for Italy. Wall Street traded 70 points in early dealings.

Vague bid talk and rumours of a pending upbeat circular lifted oil services group Petrofac 49p to 1437p.

Sold down to 156.6p initially on news that chairman Marcus Agius had fallen on his sword over the Libor rate-fixing scandal, Barclays bounced back to 172p before closing 5.55p better at 168.4p. Investec analyst Ian Gordon advised clients that chief executive Bob Diamond is going nowhere and they should not miss an opportunity and buy at current weak levels. Royal Bank of Scotland rose 3.7p to 219p.

A regurgitation of the China South Locomotive bid story saw punters chase Invensys up to 234p before the shares closed 3.1p dearer at 225.8p. The firm recently revealed that talks with US giant Emerson Electric had aborted but dealers remain convinced that its days of independence are numbered.

Demand in anticipation of pleasing results today lifted housebuilder Persimmon 26p to 635p. Northland Capital has a target price of 725p and rates the stock the pick of the sector despite its strong rally since the end of 2011.

Cash-strapped Enterprise Inns shed 3.25p to 62.25p. The pubs group sold four freehold pubs to Shepherd Neame last week to pay down debt.
Sellers dragged bicycle-to-car accessories group Halfords down 5.4p further to 223.8p following a Panmure Gordon downgrade. Analyst Philip Dorgan downgraded to hold from buy and slashed his target price to 220p from 315p. He believes the group’s markets will remain subdued for a long time and  the board will eventually have to take the  difficult decision and cut the dividend,  possibly by 50 per cent to 11p.

Soco International gushed 20p to 309.4p after agreeing to buy out the 20 per cent minority interest in Soco Vietnam for £60million from Lizeroux Oil Gas which it currently carries in the licence. Analysts gave the thumbs up to the deal with Brewin Dolphin saying it is good value for the company, while also giving it complete control over its flagship assets.

Perennial bid favourite waste group Shanks added 3.65p to 80p following the appointment of Toby Woolrych as finance director.

US healthcare software developer Craneware fell 10p to 275p after warning full-year profits will be below market expectations. Peel Hunt slashed its target price to 350p from 450p.

BATM eased 0.63p to 14p after management warned at the AGM that the group will just break even at an operating level in the first three quarters before delivering profit in the fourth quarter.

Buying on further consideration of last week’s upbeat trading statement helped Stagecoach rise 4p to 270.4p. Investec maintains a hold recommendation as the stock already stands at a significant premium to the sector, while the market awaits clarity over the West Coast rail bid.

- Growing concerns about the outlook for TV advertising ahead of the London Olympics have led to various downgrades for struggling ITV from some cautious sector analysts. For example, Investec recently downgraded to sell from hold and slashed its target price to 60p from 90p. Nevertheless, the shares firmed 1.2p to 77.8p after several directors bought stock at 76.39p a pop. The year’s high was 91.25p.

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