London’s AIM Index has started the week trading in a tight range of just three points, reaching the bell less than one point lower at 1265.12
- John Lewis of Hungerford +50%
- Ridgecrest +24%
- Tekcapital +13%
- UK Oil & Gas -23%
- Westmount Energy -21%
John Lewis of Hungerford [LON:JLH], the slightly confusingly named AIM-listed kitchen fitter, found itself at the top of the board today, reaching the bell some 50% higher amidst a relatively frantic day of trade. The company has issued an RNS denying there’s anything behind the move, so with UK retail stocks very much in focus, is this simply a case of mistaken identity?
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Ridgecrest [LON:RDGC] was the day’s second biggest gainer, reaching the bell some 24% higher. The company has been operating as a cash shell since the start of the year and is set to see shares suspended tomorrow given its failure to complete an acquisition. Whether this is simply short covering or an expectation that there’s still some value in the corporate structure with a quick relisting following remains to be seen.
Tekcapital [LON:TEK] gets the notable mention today. The stock has been on our radar since they did a cash call to fund an extended stake in Bellascura, which has now itself gone on to float, but it’s another portfolio company which is behind today’s rally. Shares were 12.5% higher at the bell after eyewear brand Lucyd signed an exclusive distribution agreement with a Canadian firm. The numbers here are far from huge – just $4.6m worth of sales need to be made over a 30 month period to maintain the exclusivity – but that granting of share options last month clearly gave investors some big clues as to what management thought the business was worth.
UK Oil and Gas [LON:UKOG] is at the foot of the board, off 24% following news of a discounted placing for a further £5m and advice that an open offer to existing shareholders for a further £5m is to follow. The funds allow the company to complete the Basur-3 project, which was the catalyst for those sharp – albeit brief – gains in price back in April, so perhaps the dip is simply reflecting the dilution rather than investor fatigue.
Westmount Energy [LON:WTE] also had a difficult start to the week, sliding 21%, in the wake of a drilling update this morning. The news here was that a well which reached target depth failed to encounter any commercial hydrocarbons. Shares closed at levels not seen since April 2020.