Risk Warning

I agree

Prime Markets in the Press - Weir Group (WEIR)

25/01/2011

Capital Drilling provides services to mineral explorers and mining companies. The company also offers data and voice solutions and supplies such tools as conventional hammers and bits, diamond coring products, tools and safety equipment.
The group was incorporated in 2003 and is based in Singapore. It has drilling operations throughout Africa, Pakistan, Armenia, Serbia, Papua New Guinea, Hungary, Chile and Singapore. Overall, it owns and operates more than 70 drilling rigs.

Capital Drilling came to the market in June, when 33.8 million shares were placed at 61.5p, raising about £2 million against a then market capitalisation of £83m.

The company anticipates its rig utilisation rate to continue to increase, a view supported by the interim management statement in November, which confirmed revenues of $20.8m (£13m) to September compared with $13.8m for the comparable period last year.

An investment in Capital Drilling is obviously not without risk but its enthusiastic debut confirms an appetite for such prospects, which may appeal to some members of the investment community.

Capital Drilling
108p +4.5p
Scotsman says BUY


BROKER SNAPS:


Aberdeen Asset Management
215.5p +3.7p
Broker says ADD

Following a robust update on Thursday, Evo Securities has upgraded its profit estimates for Aberdeen Asset Management over the next two years. But analyst Michael Sanderson added: "After its strong start to 2011, we see better value elsewhere amongst the asset management sector."


Weir Group
1,612p -41p
Broker says BUY

Richard Curr, at Prime Markets, said Weir shares have slipped to the bottom of a "rising trend channel", and recommended buying on dips below 1,650p. He said: "We expect the upward trend to resume, hitting our short term target of 1,750p in seven-to-ten days, and 1,825p in the next four-to-six weeks."

The Scotsman

Securities and Derivatives markets may be subject to rapid and unexpected price movements and past performance is not necessarily a guide to future performance. Trading in these markets is generally considered to be suitable only for the more experienced investor as it carries a high degree of risk. An investor may not receive back the amount of their original investment and in certain circumstances may be liable for a sum that is greater than their original investment. If in any doubt, please seek independent financial advice.