London’s AIM Index has posted its third successive day of gains, although the upside has been rather more limited with the junior market advancing less than two points by the bell to reach 887.65.
- Tungsten West +21%
- Music Magpie +18%
- Fevertree Drinks +13%
- Hotel Chocolat -45%
- In The Style Group -34%
Tungsten West LON:TUN topped the board, adding 21% by the bell. This morning the company announced that it was restarting operations at a mine in Devon following a re-evaluation of the project, and that the CEO will be leaving with immediate effect.
Music Magpie LON:MMAG advanced 18% on the day, adding to yesterday’s gains which appear to have been seen off the back of a research note. This set a bullish target for the company’s share price, although with limited trade for the company, the spread is noticeably wide. One to watch?
A notable mention for FeverTree LON:FEVR, the manufacturer of high end mixers. Shares were rattled by last week’s profit warning, but a second director dealing notification seems to have buoyed support for the stock for a second day on the bounce. Today’s 13% gain means that shares have now recovered more than half of the losses posted on Friday morning.
A trading update from Hotel Chocolat LON:HOTC left a bitter taste with investors this morning despite revenues coming in ahead of expectations. Whilst there are some notes of caution in here, the underlying story appears to be positive with regard to long term growth and although there’s a theme of de-risking, the question that many will be asking is if the 45% fall – putting the stock at the bottom of the board – ends up looking a bit overdone.
In The Style Group LON:ITS also struggled, shedding 34% by the bell. Again, investors seem to be taking a glass-half-empty view here, despite there being plenty worth cheering. That said there are short term issues such as the modest loss posted for the year and the expectation that direct to consumer margins will see further pressures.
