BioMedica can fill the hole

Oxford BioMedica, the gene therapy group that came to the market mid-December, and was caught up in the mini-crash on Wall Street, and a hideous market for new issues, will this week decide whether to pursue legal action against the two underwriters which pulled out of the deal. The move left BioMedica with a pounds 1m hole in its fund raising efforts. The deal still managed to get off the runway, but from the offer price of 88p, it dived to 47p. However, chief executive Alan Kingsman says the company is comfortable with its financial position, and has recruited three senior staff to boost its research efforts. An announcement next month will confirm details of a scientific advisory panel. Based on its research, and the quality of its staff, the shares, at 57.5p, still merit a buy.

CIRQUAL, the aluminium extrusions business, tipped here at 152.5p in September, is now sitting pretty at 191.5p. As expected, in December the company became the first AIM company to transfer to a full listing on the main market, and for its maiden figures, beat its prospectus forecast, posting pre-tax profits of pounds 2.96m. The shares have been further boosted by an upbeat AGM statement last week by its chairman, former FKI chief, Tony Gartland. Yet the shares still trade at a prospective multiple of 11 times, if profits hit pounds 5.3m this year, which should be possible. Buy.

BACK on the biotechnology beat, Stanford Rook (525.5p) announced interesting findings last week for its M. vaccae treatment, in a pilot study on patients suffering from or skin cancer. The company said 25 per cent of a 36 strong patient group showed improved antibody response, required for immunity to cancer. The market was clearly aware of the pending news, as the shares were up 90p to 522p before the news was released. However there is little in the findings to offer any concrete evidence of long term benefits. The trial did not have a control group of any description, and there are still doubters about the company's research. Avoid.

SILVERMINES (81.5p), the Irish-based group with an expanding presence in closed-circuit television, has exited the last of its non-electronics businesses with the IRpounds 2.6m disposal of its Shannon Business Park. It has also won a major CCTV contract in Asia with the China Construction Bank. The group should beat analysts' forecasts of pounds 4.1m for the year to December 30, 1996. Buy.

TINY Rowland issued another string of questions for Lonrho (127.5p), ahead of its full-year results last Thursday. Unsurprisingly, there were no answers. But his point about Anglo American's sugar business, Tongaat- Huelett's, interest in Lonrho's sugar estates, is correct. Anglo wants the Lonrho sugar business - and Lonrho may be willing to part with an excellent operation. However, there are difficulties here, even if the two sides do reach agreement on price. Lonrho's sugar business has protected status for sales of its sugar cane into the UK, where it can sell at above the world price. This may not hold true for Anglo. The two businesses, however, know each other well, and would make a good fit. But even if there were a deal, it would not resolve the problems at Lonrho, and the shares are best avoided.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Graduate Recruitment Resourcer

£20000 per annum + commission: SThree: Sthree have an exciting opportunity for...

Recruitment Genius: Telesales Executive - OTE £32,000+

£18000 - £32000 per annum: Recruitment Genius: A Telesales Executive is requir...

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat