Yesterday's trading: Applegarth set for a comeback

By Geoff Foster for MailOnline
Updated:

 

An interesting jackanory did the rounds that Adam Applegarth, the disgraced former boss of Northern Rock, is considering a City comeback less than a year after the mortgage bank had to be bailed out by the Government.

Geoff Foster, Daily Mail City

Geoff Foster: Daily Mail

He was widely criticised for his handling of the crisis, but penny share punters didn't have that on their minds when they piled into Tanfield amid speculation that institutional investors, led by the Prudential, had approached him to take over the reins of the controversial Tyne & Wear-based maker of aerial lifting machines and electric vehicles.

The shares, which recently plummeted 80% on a major profits warning, touched 7p before closing 0.45p easier at 5.7p on turnover of 54m shares. The year's high was 203½p.

Institutions want Tanfield's management removed after the company's rapid decline this year.

It had been criticised by analysts for poor standards of disclosure and weak financial controls before it hit the market with a devastating profits warning, blaming it on production issues combined with a drop in global demand for products.

Applegarth lives in the north east and is available. Tanfield's founder Roy Stanley, a local entrepreneur, is believed to be ready to give him a chance.

Bears mauled Pursuit Dynamics. The shares were sold down to 202½p before rallying to finish 1¾p off at 218¼p, down from the year's peak of 360p.

Yet to make a profit, Pursuit recently reported interim results which fell short of analyst expectations. The company, which had forecast full-year revenues of £7m, reported only £1.8m in the first-half and a loss of £4m.

Investec says sell the shares and has a target price of 42p.

Goldman Sachs chief Michael Sherwood trousered more than £40m when shares of Sepura were floated at 145p last August.

Now look at them. Sellers were all over the maker of digital walkie-talkies for the emergency services like a rash on talk that another profits warning is imminent.

The close was 24½p down to an all-time low of 55p. After-hours the company said it 'knows of no reason for the share price movement'. Really!

Off to a dreadful start and trading below its March low of 5414 at 5358.5, the Footsie later shrugged off the quarter point rise in Eurozone interest rates to 4.25% and a Lehman Bros forecast that the UK economy is spiralling into recession, and closed 50.3 points better at 5476.6.

The closing auction had to be extended until 5pm because of a 'backlog of data'.

Now officially in the grip of a bear market after falling 20% in two months, Wall Street retrieved a 58 point deficit to trade 122 points higher. Job losses in June were in line with expectations and helped allay fears that the ailing US economy is getting worse.

Amid growing speculation it is about to sell its BankWest asset in Australia, HBOS traded above its 275p rights price to finish 18¼p higher at 279¼p.

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Royal Bank of Scotland, which got its £12bn fundraising away without too much fuss, advanced 9p to 213p.

Lloyds TSB rose 10½p to 306p on a Shore Capital recommendation. The 12%-plus yield and eventual re-rating offers the potential for substantial long-term shareholder return, says the broker.

Sold down down to 100p, consumer credit and debt recovery company Cattles rallied 10¾p to 115¼p. Trading is apparently in line with expectations.

Housebuilders erected decent gains after the Government said it is to introduce a package of measures to help stabilise the housing market.

Bellway bounced 33p to 410¾p, Bovis Homes 24½p to 316½p and Barratt Developments 1¼p to 41½p. Taylor Wimpey, still in dire need of cash, closed at an unsteady 35p.

Pubs company Mitchells & Butlers touched 184¼p and closed 3p off at 195p on hefty turnover of 144m. Dealers noted that Robert Tchenguiz had swapped CFDs - contract for differences - for physical stock. He holds 26%.

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