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Most followed: ASOS, Gulf Keystone, Stellar Diamonds, StratMin Global, Speedy Hire, Cairn Energy, Polypipe

Last updated: 21:22 18 Mar 2014 AEDT, First published: 22:22 18 Mar 2014 AEDT

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There must have been some pretty smug looking faces around the City today as ASOS’s (LON:ASC) naysayers finally made a correct call about its share price.

Research analysts across the Square Mile with ‘sell’ ratings on the stock have repeatedly had to admit they were wrong after a string of strong sales numbers from the online fashion group.

But today they were vindicated as the shares tanked as much as 20% in early trade, wiping more than £1bn off its market capitalisation.

The shares though recovered some of their value by 11am, down 13% at 5,500p.

The company is paying the price for having ambitious growth plans as it warned that expanding the business – namely investing in warehouses in the UK and Germany and starting up its Chinese business – would take its toll on margins.

The 26% sales growth (£136mln) meanwhile was below analyst expectations of 32.5%.

Investors gave the news the thumbs down, sending the shares to a five-year low, down more than 20% at one point.

Another AIM heavyweight, Gulf Keystone Petroleum (LON:GKP), rose 20% to 124.5p as investors decided the shares were cheap again after last week’s heavy fall.

That came when an independent reserves and resources update that disappointed its disciples.

A total of 12.5bn barrels of gross oil in place were confirmed in the report, which is someway shy of prior estimates in the order of 19bn barrels.

Stellar Diamonds (LON:STEL), a minnow by comparison, was on sparkling form, up 10.5% to 2.1p.

The company continues to recover high grades and “exceptional” quality stones from its Tongo kimberlite project in Sierra Leone.

So far the group has recovered 551.6 carats from its bulk sampling programme at an average grade of 126.3 carats per hundred tonnes, which is higher than the estimated grade 120 carats per hundred tonnes.

Not only that, but a number of ‘outstanding’ gem quality diamonds have been uncovered with stones of up to 6.7 carats in size.

Stellar said it anticipates the grade will increase as further diamonds are recovered from re-processing.

StratMin Global Resources (LON:STGR) was also in demand as it said it saw an immediate uplift in the carbon content of the graphite produced at its Loharano project in Madagascar following the installation of a ‘scrubber’.

That’s good news as the higher the carbon content, the more valuable the graphite.

The most recent trail production batch averaged a carbon content of 90%, well above the 78% it normally sees.

Speedy Hire (LON:SDY) shares were being hastily offloaded, driving the share price down 17% to 63.5p.

The construction equipment rental business warned that losses in the Middle Eastern business will be greater than anticipated, hitting its profits.

Cairn Energy (LON:CNE) was another heavy faller, down 11.3% to 174p and dragging the market capitalisation down to £1bn.

The company has put the brakes on its share buyback programme until a review of its Indian income taxes is resolved.

Also catching the eye was plastic pipe maker Polypipe Group, which laid out the blueprint for a stock market return.

The company, which would be valued at around £400mln, is making half of its shares available to new investors.

SafeCharge also joined the IPO queue in London. The payments provider is planning to join AIM to raise around $100mln, valuing it at £210mln-£230mln.

 

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