Axis-Shield (LON:ASD) confirmed the launch of its automated anti-CCP (Cyclic Citrullinated Peptides) test for the early detection of rheumatoid arthritis today. The test will run on the Zenit RA analyser system, with both the test and the analyser system being launched through Europe by Technogenetics, which is a subsidiary of the Bouty Healthcare Group. Analysts at Daniel Stewart used the update to reiterate their positive stance on the company and price target of 335 pence.
Both FinnCap and Astaire Securities weighed in on final results from ILX Group (LON:ILX). Full year revenues fell by 5.7% to £14.7 million, while operating profit slipped to £1.45 million from £2.09 million in 2009. Underlying profit before tax (PBT) also fell, to £1.1 million (2009: £1.7 million) while net debt fell by £1.5 million to £3.16 million. Overall, both FinnCap and Astaire Securities noted that the results were in line with market expectations. Astaire published no recommendation on the stock, but did state that the current strategy ‘looks to be the right one’. FinnCap was bolder, stating that the ‘stock looks cheap’ based on the current dividend yield of 7% and P/E of 5.1 based on forecasts that earnings per share will rise by around 43% over the next 24 months.
FinnCap was also impressed by news from Zoo Digital (LON:ZOO) yesterday, which announced that a second major Hollywood studio would be adopting its media collaboration platform which cuts costs by integrating and simplifying the process involved in producing home entertainment products in multiple languages (billboards, online advertising, labels, posters etc). While FinnCap did not release any forecasts, the broker did say the news was ‘clearly continuing strongly positive momentum’ and it was looking forward to the company’s preliminary results due to be released on Monday.
Astaire Securities believes Media Corp (LON:MDC), which owns the gambling.com web portal and Purple Lounge poker website, will benefit from regulation and taxation of online gambling in the United States. An article in the Financial Time’s Lex column this morning stated that several US states are looking to bring online betting onshore, thereby allowing it to become more regulated, and ultimately, generate additional tax revenues for the state. US citizens spent an estimated US$5.8 million in 2008 through offshore gambling sites. Four bills are currently in Congress which would see some form of regulation of online gambling, but progress through Congress is expected to be slow due to concerns about addressing gambling addiction and protecting minors from opening accounts. Analysts at Astaire also trimmed their EPS forecast from 0.39 pence to 0.36 pence in 2010 and 0.89 pence to 0.86 pence in 2011 due to the placing of treasury shares and the exercise of warrants which lifted the total share issue in Media Corp to 335.5 million. Astaire is currently forecasting revenues of £34.3 million in 2010 and £46.25 million in 2011.
“As previously argued, we believe that some form of regulation and taxation of online gaming in the US is inevitable given the number of Americans participating in online gaming and the powerful lobbyists of the US gaming companies that want to participate,” Astaire added. “But the period of prohibition has enabled overseas operators to build up market share and momentum – any relaxation is likely to spur a period of consolidation.