MOVERS OF MONDAY 14 DECEMBER 2020

Francesca Morgan
Market Report
16:30, 14th December 2020

Aston Martin Lagonda Global Holdings (LON:AML FOLLOW) shares ticked up 7.13% to 1,518p  

The group told investors that regarding the results of its General Meeting held earlier that day, the group has announced that the Capital Reorganisation has become effective today. 

After trading around the 50p mark for much of October, the share price hit 80p earlier last week, however, the stock slumped by the end of the week as a result of the UK’s Brexit woes. 

‘This impacts the Aston Martin share price negatively due to the implications of a no-deal result. Last year the business announced it had set aside £30m for a Brexit contingency fund, to draw on if needed,’ reported Yahoo Finance during early morning trading. 

Shares in the British independent luxury sports car manufacturer has remained low. Despite the jump today, the stock has more than halved in value since the start of 2020, despite shares in the company having risen 54% after news of a vaccine lifted investor sentiment. 

Yahoo Finance recently reported that its share price slump from March as a result of the global coronavirus pandemic has only added to the car maker’s woes. After starting 2020 at around 150p, the share price subsequently fell down to 46p by the middle of March.  

Premier African Minerals (AIM:PREM FOLLOW) shares rose 27.71% to 0.053p  

Last month, it noted positive assay gold results from recent sampling pursuant to a site visit and preliminary geological review of the recently acquired Mozambique tenement. 

The best grade returned was 23.7 grams per tonne gold, with several samples carrying grades of between 1.11 grams and 1.72 grams while CEO, George Roach said, "This remains an early-stage exploration and no resource conclusions may be drawn at this time.” 

While the tenement area remains small, applications remain in process to expand the area on anticipated strike. The detection of gold in samples taken and the specific location of the higher-grade samples is ‘encouraging’ and supports plans to expand exploration in the area. 

He added, “Worth noting are the elevated grades of silver in all samples and the potential commercial significance of this in any future mine development.” 

The company continues to proceed with other prospecting applications in other areas in the Nampula province of Mozambique where active artisanal mining is taking place.

PREM price chart

Sareum Holdings (AIM:SAR FOLLOW) shares jump 23.08% to 1.6p after TYK2 identified as key causative genetic mechanism for COVID-19 

Sareum said an analysis of DNA samples from patients with severe forms of Covid-19, including symptoms caused by the overactive inflammatory response ("cytokine storm"), has identified its TYK2 as a key causative genetic mechanism and a potential target for therapy. 

The observation is consistent with the scientific rationale supporting its recent successful UK Research & Innovation grant application for its proprietary TYK2/JAK1 inhibitor, SDC-1801. 

The funding from this grant will be used to investigate the therapeutic potential of SDC-1801 in severe phase COVID-19, in a six-month research project, with results expected next year. 

Sareum's Chief Scientific Officer, Dr John Reader, commented, "The important findings of this extensive DNA analysis, which were highlighted in this Nature Article Preview, provide strong support for our hypothesis that TYK2 inhibition could be a significant contributor to the fight against the life-threatening cytokine storm effects of severe Covid-19.” 

SAR price chart

Codemasters (AIM:CDM FOLLOW) shares rose 22.10% to 652p following counter takeover offer 

The UK-based game developer and publisher told investors this morning that it recommends that the company accepts a takeover offer from US firm Electronic Arts Inc. (NASDAQ: EA).  
The company previously announced last month that it had reached an agreement with Take-Two over a possible takeover offer of 485p per share, valuing the company at £735m.  

This morning, however, Codemasters said it was withdrawing its recommendation for the proposal after receiving a cash offer of 604p per share, valuing the group at £954 million. 

‘EA believes the combination of EA and Codemasters creates an opportunity to deliver further growth and success for Codemasters' and EA's popular and innovative franchises,’ it said. 

“The value of the new offer is more akin to the sector average and provides a greater premium to CDM’s current trading value and the Take-Two bid,” said Shore Capital. 

Analysts added, “Therefore, we suggest that shareholders vote in favour of the EA’s counteroffer. We would expect CDM’s share price to rise to a similar level of the bid and at this point, we would value it as fair and downgrade our recommendation from Buy to Hold” 

CDM price chart

Plus 500 (LON:PLUS FOLLOW) shares fell 5.02% to 1,388p despite Jeffries upgrade  

Shares in the online trading firm dipped today despite receiving an upgrade from Jeffries last month which cited scope for ‘material upside’ to the group’s full-year 2020 earnings guidance. 

Following an exceptionally strong set of third-quarter earnings, the US broker highlighted that the company had opted to stick with the full-year consensus figures already in the market. 

Jeffries’ analysts had moved the stock to ‘buy’ from ‘hold’, raising their price target 30p a share higher to £17.60, increasing its adjusted earnings per share estimate by 19% for 2020, reflecting the third-quarter results and ‘supportive fourth-quarter key performance indicators.’ 

Despite the move, shares in Plus 500 have fallen nearly 5% since the beginning of the month.

PLUS price chart

 

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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