Enlarged trust is a canny way to capture a rerating of unloved UK small cap stocks
Hikma is not too sick
Continuing demand for Hikma Pharmaceuticals’ (HIK) injectables and branded businesses and consensus expecting a 30.5% rise in pre-tax profits for 2016 are reasons for investors to stick with the Jordanian drug company. The FTSE 100 member issued a profit warning in November 2015 on lower generic sales. (MD)
Oil glut weighs
Oil prices start 2016 under continuing pressure as the market absorbs news from data provider Genscape that stocks at a key hub in Cushing, Oklahoma are at record levels. The weakness flies in the face of ratcheting geopolitical tensions between key oil producing locations Saudi Arabia and Iran. (TS)
Germany gets to work
The number of people out of work in the eurozone’s largest economy dropped by a much bigger than forecast 14,000 in December 2015, according to new data (5 Jan). This compares with the 8,000 decline penciled in by economists and means the unemployment claims rate remains at a record low of 6.3%. (TS)
Breathing space for Bagir
Bombed-out Israeli tailor Bagir (BAGR:AIM) has bagged itself some breathing space to effect a turnaround under new CEO Eran Itzhak. New arrangements (4 Jan) with lenders Leumi Bank and Discount Bank have relieved pressure on its finances, though the indebted micro cap is one for the risk-tolerant only. (JC)
Edwin bolsters offering
Manufacturer of extrusions, mouldings and fabricated low maintenance building products Epwin (EPWN:AIM) has bought Stormking Plastics in an earnings accretive £27 million deal (4 Jan). An accompanying update sees the £194.4 million cap - trading at 145p - flag that 2015 profits will be in line with market expectations. (SFl)
Andes tackles debt
South America focused Andes Energia (AEN:AIM) is in the process of paying down its $5 million lending facility with Macquarie. The company has made a $1.54 million payment ($1 million of principal plus interest) with the remainder to be repaid on 26 February. (TS)