Member Info for jange

Croda International: Berenberg ups target price from 2600p to 2700p, while its buy recommendation is retained.

Close Brothers Group: Shore Capital downgrades to hold.

Coastal Energy: Investec downgrades from buy to hold, while maintaining a target price of 1406p.

Bovis Homes Group: JP Morgan downgrades to underweight with its target price still at 560p.

Big Yellow Group: Peel Hunt downgrades to hold with a target price of 380p.

Bellway: JP Morgan takes target price from 1088p to 1130p, but downgrades to neutral.

Associated British Foods: Jefferies raises target price from 1365p to 1650p keeping a hold recommendation.

Positive Points: Management initiatives such as focusing its business and increasing recurring revenues through customer service subscriptions are being pursued. The board previously undertook a resource allocation programme to drive investment in growth and centralise R&D in its three largest markets. In North America, the stronger trading performance reported for the second half of 2012 had continued in the first quarter. The board highlighted that "the UK and Ireland business demonstrated good growth in the period." In June (2012), Sage announced the acquisition of a controlling interest in Folhamtic, a leading provider of accounting, tax and payroll and regulatory content software in Brazil. It paid a total consideration of £125 million. In November 2011, Sage completed the sale of Sage Healthcare to Vista Equity Partners. A share buy-back programme remains ongoing. The programme has continued since the year-end and, to date, a further 32.4 million shares have been repurchased for a consideration of £99.3 million. A progressive dividend policy continues to be pursued. The total 2012 dividend was increased by 4% compared to 2011.

Negative Points: Accompanying management comments noted that "economic conditions for our customers are challenging across our markets and we remain particularly watchful of the uncertain market environment in mainland Europe." The company's core (SME's) customer base appears to have suffered more at the hands of the banking credit crisis. Competition is continuing to grow in the small to medium-sized enterprises (SME) arena where barriers to entry are relatively low, attracting more companies to enter the market. Germany's SAP and Microsoft are much bigger companies than Sage and could disrupt sector trends. Group net debt at 31 December 2012 was £212.7 million (£161.5 million as at 30 September 2012). The company has exposure to foreign exchange risk.

First quarter update: In a short announcement, Sage provided little excitement for investors, with the share price drifting lower (-1.8%) in midday trading. The Chief Executive summarised, noting that "overall, trading remains solid and in-line with expectations." In Europe, revenue trends continued to vary by geography. Its UK and Ireland business demonstrated good growth, whilst conditions in mainland Europe remain challenging. In North America, the stronger trading performance reported for the second half of 2012 had continued. Meanwhile, its Brazilian business delivered good growth with progress remaining in-line with management expectations. Finally, its Africa, Australia, Middle East and Asia (AAMEA) business continued to perform well, with South Africa proving a strong highlight. Expansion in the Brazilian market continues to be pursued, whilst execution of the group's share buy-back programme remains ongoing. In all, whilst management initiatives such as increasing recurring revenues are being followed, a challenging economic backdrop for many of its markets

Positive Points: Key production guidance was reiterated by management, meaning that BHP remains on track to deliver its targeted 10% of annual growth. BHP Billiton approved eight major projects during the 2012 financial year for a total investment commitment of US$7.5 billion. The board has recently placed a greater emphasis on controlling costs. An assessment of more non-core products and operations continues to be made by management. BHP benefits from a uniquely diversified portfolio that reduces its exposure to any one commodity or currency. The company is a potential beneficiary of any broad recovery of the global economy. Melbourne, Australia headquartered BHP Billiton is the world's largest mining company measured by revenues.

Negative Points: Cost pressures for both BHP and the wider industry continue to be seen. Higher fuel and energy prices (of which BHP Billiton is a net beneficiary), together with increased maintenance, labour and contractor expenses continue to provide cost pressures. Natural events such as the recent floods in Australia could impact on production. Currency movements provide potential headwinds. Attempts to substantially expand the company have failed, including a proposed merger with giant rival Rio Tinto. As such, the opportunity to remove significant costs has been lost. Costs in relation to each failed deal, including potential fees to investment bank advisers, have been suffered.

Half year production report: Mining giant BHP Billiton said it was on track to deliver 10% annual volume growth this year and next across its portfolio of commodities. BHP beat analysts' expectations with iron ore production of 42.19 million tonnes to 31 December, up 3% on the corresponding period a year earlier. Iron ore is BHP's biggest business, accounting for over half of operating income last year and a commodity in demand from China. In Oil and Gas, BHP's output of 59.9m barrels of oil equivalent in the December quarter topped market forecasts. The company also revealed that its US onshore business had produced 48,000 barrels of natural gas liquids per day, a 13% increase on the same quarter a year ago. Copper production was broadly in line with analysts' expectations as was coking coal, where the group identified a substantial reduction in costs following the closure of two unprofitable mines. Elsewhere, BHP's production of metallurgical coal, used in steel-making, climbed 5% in the latest quarter. On balance, market consensus opinion remains a buy for the time being.

Positive Points: Earnings guidance for 2013 proved to be at the upper end of analyst expectations. The company achieved its tenth consecutive year of double-digit earnings per share growth. Sales growth in Asia continues to be reported. Asia-Pacific revenues increased by 3% for the full year to $25.9 billion. The CEO noted that "we are well on track toward our long-term roadmap for operating EPS of at least $20 in 2015." Management has previously set goals of adding $20 billion in new revenue and spending about $20 billion on acquisitions, from 2010 through to 2015, as it expands its offerings to business customers. IBM is a major global supplier of information technology (hardware and software) to corporations and governments, so it is seen as a bellwether of technology spending trends. A progressive dividend policy continues to be pursued.

Negative Points: During the fourth quarter, revenues for its Americas business were flat at $12.5 billion, flat (up 1% when adjusting for currency) from the 2011 period. Revenues from Europe/Middle East/Africa were $9.1 billion, down 5% (down 3% when adjusting for currency). The company generates approximately 60% of its revenue outside the US. Currency movements can both hinder and assist performance. The group derives a major portion of its revenue from government spending and the financial services industry, both hit hard by widening fiscal deficits and volatile markets, respectively. The group encounters competitor risk with business software makers Oracle Corp and SAP AG as well as computing giant Hewlett Packard.

Financial Highlights: Revenues for 2012 totalled $104.5 billion, a decrease of 2% over 2011 or flat when adjusting for currency movements Diluted full year earnings came in at $14.37 per share compared with $13.06 per diluted share in 2011, an increase of 10% Revenues in the BRIC countries - Brazil, Russia, India and China - increased by 7% (up 12% when adjusted for currency movements)

Full year results: The announcement pleased investors, with the share price gaining in after hours trading. IBM announced its tenth consecutive year of double-digit earnings per share growth, while management guidance for 2013 came in at the upper end of analyst expectations. The Chief Executive noted that "performance in the fourth quarter and for the full year was driven by our strategic growth initiatives - growth markets, analytics, cloud computing, Smarter Planet solutions - which support our continued shift to higher-value businesses." Full year revenues from its Software segment rose by 2%, whilst revenues in the BRIC countries - Brazil, Russia, India and China - increased by 7% (up 12% when adjusting for currency). In all, patience with regards to the group's push towards higher margin services and software products and away from hardware continues to be maintained

Positive Points: Management noted that "we have reported another quarter of good quality, profitable growth ahead of our markets. All categories and all geographies grew with a good overall balance between volume and price." Reported underlying sales were at the upper end of analyst forecasts. Emerging markets underlying sales growth was 10.8% in the fourth quarter. Sales now represent 55% of group turnover. Unilever continued to invest in its brands, again increasing advertising and promotions spend. Both Magnum and Sunsilk have now joined the group of €1 billion brands in its portfolio, bringing the total to fourteen. Many of the group's products remain defensive in difficult economic times. Group net debt over the full year declined to 7.35 billion euros (2011: 8.78 billion) A progressive dividend policy continues to be pursued.

Negative Points: Accompanying management comments highlighted tough economic conditions, volatile commodity costs and an intensely competitive environment. The value of developed market value sales remained subdued, with volumes lower than the prior full year. Although price increases boosted group revenues, volumes for its food division declined marginally (-0.1%) over the fourth quarter. The supermarket groups in the UK for example, continue to push their own label brands. Currency movements provide potential to create headwinds. Some valuation concerns have been expressed. While the broader FTSE-100 index has gained by just under 7% over the last year, the Unilever share price has enjoyed a near 20% gain.

Financial Highlights: Group revenue increased by 10.5% to €51.3 billion with a positive impact from foreign exchange of 2.2% and acquisitions net of disposals of 1.1% Underlying full year sales growth of 6.9% reported. Emerging markets underlying sales growth of 11.4%, with developing economies now representing 55% of group turnover.