London’s AIM Index was just over 1 point lower at 2pm, trading at 859.99. The fact US futures are suggesting a softer start appears to be taking a toll for now.
- Tower Resources +38%
- Tavistock Investments +21%
- Active Energy +18%
- Unbound Group -39%
- Bluerock Diamonds -39%
Tower Resources [LON:TRP] found itself at the top of the board by 2pm today, up some 38%. Yesterday’s news of an institutional placing failed to generate a response at the time despite elevated levels of trade on the stock, but sustained interest on Tuesday is lending support. The shortage of supply is also likely contributing to the close on 10% spread that’s being quoted in early afternoon trade.
Tavistock Investments [LON:TAVI] was up 21% by copy time, with sharply elevated levels of trade being seen in the stock. There’s no official news release but investor media have been positive about the NAV. The spread is somewhat wide however so the question will be when this settles, can the gains be cemented?
Active Energy [LON:AEG] gets the notable mention, having tacked on 18% by mid-afternoon. A business update this morning from the biomass energy business has evidently offered something for investors to cheer, although the stock has had a difficult run since last summer.
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Unbound Group [LON:UBG] was the laggard at 2pm in the wake of their trading update this morning, down just over 29%. A number of factors have taken a toll on the company including the hot weather in the summer plus Royal Mail strikes towards the year end. The broader economic outlook is also providing cause for concern. Full year performance is now expected to come in below expectations.
Bluerock Diamonds [LON:BRD] was in second to last position, with losses close on 39% as investors digested the company’s operations and corporate update. Critically here it seems that the inability to reach a roll over agreement on part of a convertible loan note has resulted in the threat of creditors attempting to see the company wound up. With this and other uncertainties, the downside risk is real.