London’s AIM market may have started the week awash with optimism and in line with the main board, but momentum proved difficult to sustain. Sentiment soured around the start of trade across the Atlantic, leaving the index to finish almost five points lower at 1212.
- T42 IOT Tracking Solutions +71%
- Blue Star Capital +36%
- Hornby +13%
- Univision Engineering -29%
- Napster Group -20%
T42 IOT Tracking Solutions LON:TRAC topped the board today, advancing some 71% off the back of news that it has signed a five year distribution contract with the US, along with some very positive noises on the regulatory filing about prospects elsewhere. The stock is being quoted on a wide spread underlining the demand, so it will be interesting to watch if these gains can be sustained as the week progresses.
Blue Star Capital LON:BLU also had a good session, adding 36% by the bell, but there’s no formal news statement to support the gains. Management had however suggested that an update was imminent but for now this is simply speculative buying of the stock.
In terms of a notable mention, it was full steam ahead for Hornby LON:HRN today whose shares added 13%, taking the stock to a six month high. Again there’s no news to support the move, but the company has evidently pushed through some significant price increases for the new year. Investors seem to be buying into the idea that improved margins will keep the company from hitting the buffers.
Univision Engineering LON:UVEL was the day’s laggard, shedding 29% by the close. This morning the company disclosed details of a winding up petition which had been filed against it following a contractual dispute with a supplier. The case will be pursued, but with a market cap of just £2m and the shares having been under pressure since last March, it seems as if there may be underlying issues here. The downside is arguably exacerbated by the fact a 40% spread was being quoted at the close.
Napster Group [LON:NAPS] also struggled, off some 20% on the first day back. The company has announced plans for a transfer of ownership, a delisting from AIM and it will then seek a listing on NASDAQ. The company is justifying the move on the basis of its business now being concentrated in the US and whilst the move isn’t without risk, based on US valuations this could prove lucrative in the longer term.
