FTSE in-depth: Move for Crypto is logical solution
The queue of buyers for Cryptologic is expected to be as long as your arm.
Ups and downs: Taking stock
The lossmaking online gaming software supplier has hoisted the 'For Sale' sign above its Dublin headquarters and appointed Deloitte to find a buyer.
The news helped the bombed-out shares rally 10p to 95p in London, while the Nasdaq listed stock jumped 32% to $1.60. That's still a million miles away from the £14-plus level reached in 2007 after being floated at 675p in 2003.
Although Cryptologic stressed there can be no certainty that any offer will be forthcoming after Deloitte's strategic review, dealers are confident an offer will materialise. Earlier this week the company reported reduced fourth-quarter losses of £620,000 following hefty cost-cutting that included a 47% reduction in staff to 111.
Cryptologic has suffered from continued competitive trading conditions over the past year so is bound to be already on the radar of several industry players, including big rival Playtech, 14p better at 346.5p. It licenses online casino and slot games to all the major e-gaming brands such as PartyGaming, William Hill and Virgin Games. It also has more than £6m in the bank.
Any interested party will probably want to get Cryptologic under its umbrella ahead any fresh moved by US Congress to lift the ban on online gaming. All online gambling giants, led by PartyGaming (6.6p up at 193p) are eyeing a return to the huge US market that has been closed to them since American lawmakers banned internet gambling in 2006.
888 Holdings jumped 4.25p to 44.5p after the Nevada gaming commission gave the green light to Dragonfish, its independent business-to-business division. It helped counterbalance market gossip that Ladbrokes (1.8p higher at 130.1p) has walked away from protracted bid discussions. Continuing its strong recovery from the 5,595 level when investors feared a nuclear crisis in Japan following the horrendous earthquake and tsunami, the Footsie marched further forward to close 19.89p up at 5,900.76 and an impressive 3.2% higher on the week.
Wednesday's Budget contained no banana skins and was well received. Oriel Securities' strategist Darren Winder said the measures leave the outlook for growth and inflation largely unchanged. He expects equities to rise strongly over the next 6-12 months, as earnings momentum remains positive and, related to this, valuation multiples expand.
Top of the Footsie pops was engineering company Invensys. Closing at 353.1p, it recouped 11.9p of Thursday's 16.4p fall, on revived hopes of a bid from Siemens now chief executive Ulf Henriksson has been shown the door. Dealers are confident chairman Sir Nigel Rudd, who has made a habit of selling on companies during a long illustrious career, will do the same at Invensys.
Tottenham Hotspur sponsor Autonomy took the wooden spoon, falling 56p to 1586p. JP Morgan Cazenove warned clients that earnings quality at the software group is low and deteriorated in the fourth-quarter. Operating costs rose faster in 2010 than the broker expected, and revenues/gross profit expectations were lowered during the year. Without an acquisition the quarterly results will continue to lag its peers. Its target price is £10.
Wolseley, the world's largest plumbing and building materials supplier, advanced 16p to 2081p on buying ahead of Tuesday's interims.
Dealers wonder whether the group will have second thoughts and announce plans to return domicile to the UK from Switzerland after the Budget eased rules on overseas corporate profits for controlled foreign companies or CFCs, and cut corporation tax by more-than-expected to 23%.
A year on from its flotation at £5-a-share, which valued the Superdry fashion group at £395m, SuperGroup eased 5p to 1501p. It is now valued at a mind-boggling £1.2bn. The all-time high was 1898p.
The surprise resignation of deputy chief executive Nick Shattock left Wembley property developer Quintain Estates 1p off at 42.5p. Speculation has suggested one or two private equity players are stalking the company.
News of a significant new iodine contract win lifted Iofina to 25.6p before it closed 1.13p better at 24.38p. The iodine and collection agreement with Anticline Disposal, a wholly owned subsidiary of High Sierra Energy, increases iodine brine streams by 12,000 barrels per day or up to 3.5 metric tons of iodine per month. The price of iodine has roofed as demand for anti-radiation tablets has soared following the Japanese nuclear disaster.
Struggling books chain HMV touched 20.25p and closed 0.75p up at 17.5p after confirming it is exploring strategic options in respect of Waterstone's and HMV Canada.
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