London’s AIM Index yet again managed to find another slice of upside on Wednesday, closing almost five points higher at 1185.74.
- Location Sciences Group up 36%
- Ormonde Mining up 34%
- Sabien Technology down 50%
- Xtract Resources down 27%
- Rambler Metals & Mining up 12%
Quick note on methodology…
This note is written to look at what’s been driving the two biggest gainers and two biggest fallers in the AIM Market on the day. Obviously there’s a tight time window so if stocks end up in extended auctions, the prices may keep moving after we’ve posted the report but we figure it’s better to get something out closer to 5pm than 6pm. Also the notable mention will just go to a stock that catches our eye – maybe we’ve mentioned it a few times of late or they’ve said something that seems worthy. That one is always intended to be a bit random. Keep the feedback coming as it’s all useful, but do bear in mind given AIM’s volatility we have a very small window to sort this out, which will always be the time limiting factor.
Location Sciences Group LON:LSAI added 36% on the day. The company verifies the accuracy of location data used in targeted advertising and is currently sitting on a very modest market cap of just a few million pounds. With scope for big earnings and high margins, this stock could really have potential if the right signals emerge. Again, no hard news and a wide spread also takes a little of the shine off the gains.
Natural resources play Ormonde Mining [LON:ORM] closed 34% higher on Wednesday, although that was a little way below intra-day highs. Trading was brisk although it’s worth noting that the share finished on an 11% spread, which detracts somewhat. There’s some chat doing the rounds that a deal may be announced so one to watch, but nothing firm to support the move yet.
Sabien Technologies LON:SNT fell 50% during the session following an update ahead of the market open. The company advised that it will no longer be proceeding with an acquisition announced last November, a move which has now necessitated a cash call which has some complex implications requiring the issue of new share capital. Perhaps annoyingly abandoning the takeover was necessitated by an inability to complete regulatory filings in sufficient time to avoid a delisting. Sabien’s focus on the ‘development of disruptive green energy-focused technologies’ is however something that has been a hot topic in recent weeks.
Xtract Resources LON:XTR lost 29% today, following yet another update on its Bushranger drilling project. The natural resources play advised investors that mineralisation in the current hole appears to be tapering out – but has gone well beyond initial expectations. Another day of brisk trade ensued however and this has left shares almost 40% down from January highs as enthusiasm fades. A more solid update seems necessary if spirits are to be reignited.
Finishing up with a notable mention for Rambler Metals and Mining LON:RMM which added 16%. The gold and copper miner has seen steady buying interest in recent days, with upbeat market chat over the outlook for copper prices likely lending some support here, too. This share was trading around the 2.5p mark early last year, so many appear to be seeing value at these levels.
