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However, it is not clear what effect the expansion will have on Synergy's underlying profit margins. These were more than 15 per cent in the first half of 2012-13, but there is a risk that the peculiarities of the US business could eat into them. This is because most US hospitals, unlike those in Synergy's core business with the NHS, have their own sterilising and cleansing facilities on-site. That means Synergy would be paid a fee as a service provider, rather than as a more lucrative full-facility operator. There is no doubt that the US market is far larger than anything Synergy has entered so far and the opportunities are there. However, the question hanging over the States-side project is whether investors have taken into account the amount of investment needed over the next few years to bring the service up to Synergy's standards. That could generate big one-off costs that may not be adequately priced in.

Shares in cleaning and sterilisation specialist Synergy Health (SYR) have been notably strong performers lately, outpacing shares in similar companies by 20 per cent over the past quarter on the back of some promising deals in new markets. True, Synergy almost certainly has a solid future in its key markets, but, in the medium-term, the share rating has moved too far ahead of the group's growth prospects. Really brave punters might try 'short selling' the stock; meanwhile, shareholders might simply opt to sell. The trigger for the big share-price move was Synergy's decisive entry into the US hospitals market. The acquisition of SRI/Surgical Express, in particular, for $25m (�17m) got the City's admiration, especially because the price paid looked good for a business generating sales of more than $100m.

Schroder Reit finished 2012 with 46.5p of net assets per share (NAV), down from 48.3p in September. NAV may continue to slide in the short term. But the shares currently trade some 18 per cent below NAV, giving a generous margin for further falls. And in the longer term the portfolio will recover with the regional property market. If you're a fan of value investing,

That's partly because the portfolio is lighter on shops and heavier on the south-east than the index. But the approach of the fund's manager, Duncan Owen, has probably helped. He aims to sell an asset he would no longer buy, which explains a run of recent disposals. The most notable of these is Minerva House, an office building near the Shard at London Bridge. "When an area's trendy, it's time to get out," he explains. He is using the proceeds to pay down debt ahead of the expiry of a £36.8m loan in July 2014. This involves incurring break costs and crystallising losses on interest-rate swaps. Yet it puts Schroder Reit in a strong position to refinance at attractive rates because its net loan-to-value ratio is now just 31 per cent. In addition, because the rental yields on properties sold were less than the company's interest costs, selling property to pay back debt has boosted earnings and the trust's inadequate dividend cover. Like most property investment trusts, Schroder Reit has been reluctant to cut its dividends even further, so payouts are funded partly from cash reserves, compounding the downward pressure of falling property prices on net asset value.

When the recovery spreads beyond the M25, it may be patchy, favouring well-managed property in better locations. That's why it makes sense to buy Schroder Reit, which has outperformed the market despite its nondescript portfolio: offices in Brighton and Uxbridge, a business park in Brentford, a long tail of high-street shops. Over the nine months to 30 September, the latest full data available, the company’s portfolio produced a total return (income plus capital) of 3 per cent, compared with 1.2 per cent for the IPD index.

Is it time to leave London? That's the big question in the commercial property industry, after a schizophrenic rebound that has buoyed values in the capital and depressed office and shop values elsewhere. If it is, shares in Schroder Real Estate Investment Trust (SREI) is a good way to play the eventual recovery in the provinces. Investors should be under no illusions: the regional waters in which Schroder Reit fishes are murky. The IPD benchmark for property values outside London fell 5.8 per cent last year. Retailers are shrinking their store portfolios, and few businesses are expanding. Where deals are done, they suggest that rents continue to fall. Yet the bottom must be close. Property values have halved from their 2007 peaks in many towns, pushing rental yields to unprecedented levels. Many regional offices are now valued at about half their construction cost and the "more adventurous institutions" are looking for regional deals, says Toby Courtauld of Great Portland Estates, a pure London player.

First Quantum's shares are rated at 15 times forecast underlying earnings for 2013. That makes First Quantum one of the highest rated copper miners in the world, with a rating well above London-listed peers Antofagasta (ANTO) on 13 times forward earnings, Vedanta (VED) on 12 times and both Eurasian Natural Resources (ENRC) and Kazakhmys (KAZ) on 10 times. Granted, First Quantum has the lowest production costs and - so far - first-rate management. But its shares will become a much riskier proposition if the £3bn bid for Inmet goes through, especially with the prospect of heavy spending on the Cobre project in Panama, too. And fears of that happening may drive the price lower....but as always dyor and good luck.

Yet new copper supply from miners is forecast to rise by 6.7 per cent in 2013 and, unless labour disputes significantly curtail production as in years past, the copper market could head into surplus towards the tail-end of 2013. With First Quantum highly levered to copper prices, any serious dip could send its share price downwards fairly quickly. What's more, the acquisition of Inmet would see First Quantum lose its status as a prime takeover target for other miners. The size of the enlarged group could deter predators, especially as the biggest industry players are trimming their operations worldwide. Many brokers, including Citigroup, have a 20 per cent bid premium built into valuation models for First Quantum - and that could soon be removed.

First Quantum would have to take on significant debt to fund the Inmet acquisition and build two big mines, so it would not generate free cash until 2014 at the earliest. Meanwhile, its copper production, which rose 16 per cent in 2012 to 307,115 tonnes, may stagnate at between 302,000 and 330,000 tonnes in 2013. Simultaneously, its production costs may rise slightly, although they should remain among the lowest quartile of global copper miners. These factors mean First Quantum's balance sheet could come under pressure if copper prices soften considerably. That said, most industry commentators don't think they will. Copper is most analysts' standout favourite metal and almost none of them expects a significant price drop in the near term - especially not in the first quarter following strong starts to the year in the US and China. That said, few industry analysts predicted iron ore's quick meltdown last summer, when prices dropped nearly 40 per cent in four months.

Major mining companies the world over are shelving expensive projects as they tackle soaring development costs and irate shareholders who want higher dividends. Yet copper miner First Quantum Minerals (FQM) is ploughing in the opposite direction. It is making an enormous C$5.1bn (£3.3bn) hostile takeover bid for Inmet Mining, which could dangerously stretch its balance sheet just as rivals are slimming down. We view the bid as the catalyst for a derating and downgrade First Quantum's shares to a 'sell'. Big acquisitions made near the peak of a commodities cycle have hurt major miners in the past, most recently during the 2008-09 credit crunch. But First Quantum's highly rated bosses sailed through that turbulence and have a reputation as world-class mine-builders, able to develop mines cheaper and faster than anyone else. First Quantum's large team of engineers and geologists has just finished building two mines, Kevitsa and Ravensthorpe, with a third project, Sentinel, under construction and expected to come online next year. Rather than risk losing its established and expensive construction team (or keeping them on the payroll underused), First Quantum wants to take control of Inmet's huge Cobre copper project in Panama to plug the gap between development projects. But the company is bidding top dollar for the acquisition and analysts from Citigroup estimate that First Quantum will have to make at least $400m of cost savings just to make the deal add to earnings even at today's high copper prices. That might be plausible, given First Quantum's reputation, but its bosses admit they have not been allowed to conduct "even the most cursory due diligence review" of the project because Inmet refuses to support the bid. Citigroup analysts also reckon there is a 70 per cent chance that First Quantum will have to increase its offer now that Inmet has entered talks with other suitors - and that would further undermine the economics of the bid.

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Mechanical fasteners maker Trifast said overall, trading has been solid and encouraging with organic revenue in the third quarter slightly ahead of the same period a year earlier. The Birmingham based group said profitability is on track to meet market expectations to March 31st 2013 and it is optimistic of further growth. Trifast, whose financial position has been boosted by the acquisition of Malaysian rival PSEP in November last year, said its integration is going well. The group, which generates around 60% of its sales from outside the UK, said TR Asia, the group's best performer, could benefit from further streamlining and realignment of responsibilities within the operational team. "TR could deliver additional cost initiatives and 'self-help' objectives set as part of the new three-year strategy plan unveiled last year," it explained. Otherwise Trifast said it remains optimistic for 2013 and beyond with regard to the group's structure and further improving organic profitability. "Ccombined with new business expansion opportunities, the management feel fully confident in their ability to deliver a satisfactory result at the year end."

JKX Oil & Gas said Thursday that it has begun the hydrochloric acid treatment of three wells on the Koshekhablskoye Field in the Republic of Adygea, Russia. The firm said the aim of the programme is to enhance well productivity by improving conditions in the near wellbore and the removal of residual drilling solids in the open-hole sections. The work is expected to begin in the very near future and be completed within seven to 10 days. JKX Chief Executive, Dr Paul Davies, said only that the company is "pleased to have the hydrochloric acidisation programme underway" and is looking forward to having all three wells in production by mid-March. The acid treatment will use a total of 25 cubic metres of 15% hydrochloric acid solution together with inhibitors to regulate the rate of the reaction process. Pump pressure will be maintained well below the formation fracture pressure to ensure that the treatment is kept to the near well-bore area.

Clinical research company Venn Life Sciences on Thursday said it expanded its operations with a new Russian business. The group has established Venn Russia, a joint venture with a local contract research organisation (CRO). The new arm will operate from offices in Moscow and will complement existing European services. It is part of the company's strategy to extend its geographic reach. "This move further solidifies Venn's vision to become the leading mid-sized CRO in Europe," Chief Executive Officer Tony Richardson said. "Through moving into developing markets such as Russia, with experienced teams, we are able to offer our clients better choice and access to more patient populations."

The group has now kicked off sales for the second phase of the project which comprises of five buildings and a total of 1,501 apartments. It also includes a school and a kindergarten and construction has started on the buildings after receiving approvals. During the quarter the Tsvetnoy Central Market department store recorded sales of 856m Russian Rubles, a 48% increase compared to the previous year of 577m Russian Rubles. The Zemlianoy hotel project was sold in the period for $6.0m and the Maya office development was sold for $0.6m. "[Last year] was an exceptional and challenging year. The company has concentrated its efforts on meeting the growing desire of customers in the Russian market for a product of exceptional quality," Chief Executive Officer Andrey Nesterenko said. "Good sales growth at V Lesu and Tsvetnoy show that we have a professional team which is on the right track. This year the company will focus on sustaining its growth path by obtaining new residential projects of a similar scale and continuing the development of our Moscow projects."