15th Oct 2020. 9.00am
Regency View:
Update
Regency View:
Update
Click here for printer friendly version
AIM Investor Performance – please click to view
Ramsdens fight back after being hit hard by travel restrictions
We’ve been waiting patiently for a trading update from pawnbroker Ramsdens (RFX) and yesterday we got one.
They’ve had a very tough time of it since the Covid-19 pandemic, with the travel restrictions hitting their foreign exchange business and lockdown causing many of their shops to temporarily close.
It’s fair to say that yesterday’s update was not as bad as feared, with pre-tax profit expected to come in at £9m for the 18-month period from 1 April 2019 to 30 September 2020.
Whilst the groups foreign exchange commission had been about 30% of the comparable prior-year level, August store reopenings combined with a high gold price helped to partially offset some of this downside.
Ramsdens’ balance sheet and liquidity remains in decent shape with “cash of approximately £16m at the Period end and an undrawn revolving credit facility of £10m”.
From a technical perspective, Ramsdens share price now sits at a key juncture. Yesterday’s price gap and push higher is welcomed, but prices will need to hold above the resistance zone at 128p before a short-term bottom is confirmed. We will of course keep you updated…
RFX 18-Month Chart
AAZ sees ‘significant’ improvement in Q3 gold production
Anglo Asian Mining (AAZ) released their Q3 production numbers yesterday – showing a 25% increase in gold production on the previous quarter.
The Azerbaijan-based gold miner has come in for some scrutiny recently due geopolitical troubles and a tepid set of first half numbers, so the upbeat production levels is a welcome change in the narrative.
AAZ produced 18,451 gold equivalent ounces (GEO) in the three months ended September 30 2020, versus 14,819 GEO in the second quarter of the year, and cash remains robust at $21.4m (including a $5.1m dividend and $3m of corporation tax)
It did however see production for the first nine months of the year reach 50,702 GEO, against 60,122 GEO in the comparative period of 2019 and this goes some way to explaining the markets underwhelming reaction to yesterday’s news.
The shares are currently locked in a descending channel, but in the context of the shares long-term uptrend this looks to be a period of retracement rather than a new trend.
AAZ Year-to-Date Chart
Bioventix breaks above bull channel
Bioventix (BVXP) share price finally has some bullish momentum back…
The antibody licencing specialist has been pretty quiet on fundamental newsflow since an impressive set of interim numbers in March which triggered a surging rally, taking prices to new highs in May.
During the summer months the shares had been treading water within a well-defined retracement or ‘bull’ channel given the context of the long-term trend.
This channel has been broken this week as prices have regained their bullish momentum – indicating that Bioventix long-term uptrend is kicking back into gear.
BVXP 12-Month Chart
Disclaimer:
All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.