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FTSE 250 precious metals miner African Barrick Gold (ABG) has announced that it has formed a 'Transaction Committee' as it prepares for a potential offer from China's largest gold producer, China National Gold Group. As announced on August 16th, Barrick Gold, the US holding company of ABG, is in talks with China Gold about the possibility of selling its 73.9% stake in the London-listed miner.

In The Times, Tempus considers the claims of document scanning business Kofax that it would be worth more with a listing on NASDAQ. The company has recently moved its headquarters from Basingstoke to California where most of its employees are but the frustration with the FTSE is that the Chief Exec believes Brits don’t properly understand the value of tech firms. Trading at 13 times earnings, it seems Tempus is one of those typical British sceptics: “little more than a hold”.

Valuation: Undervalued The prospective rating of 6.7x current year earnings compares with a weighted average of 14.5x for a group of international engineering groups. While there are major differences in size and the relative trading records, the big gap between the ratings demonstrates considerable upwards potential if medium-term objectives can be delivered.

http://www.edisoninvestmentresearch.co.uk/researchreports/molins040912outlook.pdf

Private label product maker McBride said it was positive on the upcoming year with consumers increasingly turning to 'own brand' labels. However, it said it would cut the full year dividend to 5.0p per share from 6.8p the year before. The firm said this was necessary "to maximise the cash available for investment in additional organic Private Label growth, and to ensure that dividend cover remains appropriate". The move took the City by surprise and investors piled out of the stock. The firm said trading since the end of June was in line with expectations as it unveiled full year revenues and profits that up slightly on the year before.

resume Shares in inhaler maker Consort Medical have almost doubled since Midas Extra, the online subscription column, tipped them in June 2010 at 380p. Following an upbeat trading statement last week, they closed on Friday at 740p. The company has two divisions, UK-based Bespak, which makes inhalers for asthma sufferers, and US based King Systems, which makes equipment used in the delivery of anaesthetics. Bespak has gone from strength to strength but King Systems has had a tough time as surgery is expensive in America and people are trying to avoid it if they possibly can. Even so, Bespak's success has driven Consort's results to record levels and profits for the year to April 30 were up 12% at £19.4m. The company is confident about its prospects and has new products in the pipeline, including a nicotine inhaler for smokers trying to quit. Consort is making impressive progress but investors who bought in 2010 have had a good run and could sell up to a third of their stock. They might even consider putting surplus funds in Vectura, which makes respiratory drugs. The shares, tipped by Midas last month at 72p, are now 84p and encouraging news is expected in the coming months, The Financial Mail on Sunday´s Midas column says.

Resume Property group Raven Russia might seem rather exotic at first glance. But look a little closer and the company offers a compelling investment opportunity, combining a healthy annual income with the potential for strong capital appreciation. Searching for a venture that would provide stable, attractive rental income and some capital growth, the company´s founders hit on warehouses in Russia. Situated outside Moscow, St Petersburg and other large cities, these huge sheds act as staging posts for everyday goods that are brought into the country and then transported to shops. When the firm was set up, there were virtually no independent warehouses in Russia. Interim figures released last week were promising. The group moved from an underlying loss of $5.8m (£3.7m) to $14.3m profits, an independent valuation of the portfolio rose by $42m to $1.4bn and the warehouses are 94% let, a figure expected to rise over the next year (the group reports in dollars because Russian business is conducted almost entirely in the US currency). Brokers expect strong profit growth over the next three years, accompanied by steady increases in the ordinary shares dividend. Russian property may not be universally attractive but Raven’s assets are solid, sensible and rented to big, respectable companies. The group is now in the FTSE 250 index too, adding a further layer of respectability. For investors in search of income, the preference shares are appealing. For those who want capital growth as well, the ordinary shares have plenty of potential. Buy, says The Financial Mail on Sunday´s Midas column.

Melrose, the industrial turnaround group, saw profits fall in the first half, but this was down to costs involved in a big acquisition. The company has a model similar to private equity – it buys struggling businesses and improves them, before selling them on at a profit. The current order book stands at a healthy £920m. This is only a 2% fall since December 2011 and, with the group highlighting a slowdown in the Middle East, this looked fairly positive, given the tough backdrop. For 2013, £307m of work has been secured, which is on track for this stage of the year. The last profit warning related to a slowdown in Australia, where there had been high hopes that Cape could win significant contracts for liquefied natural gas (LNG) projects. This is still a possibility, but should not be taken for granted. The company is currently reviewing its Far East business, which should help with costs. Trading on a December 2012 earnings multiple of 8.8, falling to 6, the shares are undoubtedly cheap. The new management has to tighten up the controls – and win more contracts. But, since the bad news appears to be all out, the shares are a buy again, The Sunday Telegraph´s Questor team says.

Insurance giant Standard Life has unveiled plans to quadruple the size of its Asia and emerging markets division as it seeks to diversify its core UK and Canadian life and pensions business. The five-year plan is to be spearheaded by Nathan Parnaby, who took on the newly-created role of chief executive of Asia in a recent shake up of senior personnel at the Edinburgh-based firm by chief executive David Nish. Standard Life has an established, wholly-owned operation in Hong Kong, and two significant joint ventures in mainland China and India. Parnaby expects to establish a “fourth pillar” to the firm’s global emerging market ambitions by entering another new market “or two”, although he declined to be drawn on where this would be as the firm is awaiting regulatory approval, The Scotsman on Sunday reports.

International Airlines Group (IAG), the BA and Iberia carrier, is considering taking a small stake in a new US airline expected to be formed by a merger of American Airlines and US Airways. The UK-listed group was one of the first to sign a confidentiality agreement giving it access to AA's financial books but Willie Walsh, IAG's chief executive, is adopting a cautious approach about making a financial commitment to a cash-hungry airline seeking help to climb out of administration. Mr. Walsh is anxious to strengthen IAG's position in the US and protect its position on the important North Atlantic routes. IAG already has close links with AA through membership of the Oneworld alliance of airlines, although relations with US Airways have been more explosive, The Sunday Telegraph explains

Mike Norris, Chief Executive of Computacenter plc, commented: "Our Services revenue grew materially in the first half of the year, reflecting our strategic emphasis on growing our Contractual Services base. While we were encouraged to see double digit organic revenue growth in Services in all countries, we must now replicate the successful contract win integration achieved in the UK across the Group. This is not a simple or quick process and much work needs to be done. However, our uncompromising approach to customer satisfaction, whatever the short term consequences, we believe is in the long term interest of all of our stakeholders, particularly our shareholders. The new Services business momentum we have built in our UK Services business looks set to continue into the second half and beyond. We are likely to see slower top line Services growth outside the UK as we put our processes in order, but this should improve our margins. We remain on track with the Board's revised expectations for the year."

http://www.investegate.co.uk/Article.aspx?id=201208310700051441L

Computacenter (CCC) reported revenue growth of 4.2% to 1.42 billion pounds for the six months ended 30th June, boosted by acquisitions, but pre-tax profits fell 20.6% to 20.8 million pounds. The IT services provider spent 7 million pounds in order to hire additional staff in order to support growth, particularly in Germany and France. The firm noted a good performance from its UK division, with adjusted operating profits rising 5.2% to 17.6 million pounds. Computacenter shares rose by 12.3p to 382.2p.

WH Ireland retained its "buy" stance on Bunzl (BNZL), impressed by the haulage company's growth in the US, Brazil and Australia. The broker said that the group has an unbroken record of free cash flow generation, with growth assisted by strategic bolt-on acquisitions. WH Ireland noted that the firm has completed six acquisitions during the first half of its financial year ending 31st December, including in the US, Israel and Switzerland, and expects more to follow before year end. Bunzl shares crept up by 8p to 1,124p.

Singer Capital initiated coverage of Genus (GNS) with a "buy" recommendation and 1,678p target price. The broker sees considerable growth potential for the animal genetics company in developed markets, as well as emerging markets such as South America, Russia and China. Singer added that the Indian market is a key medium-term opportunity for the group's dairy division, as it is the world's largest milk consumer. The broker noted that the firm is continuing to reduce debt and expects it to have a net cash position by 2019. The shares advanced by 37p to 1,371p.

Wunderman launches joint venture in Indonesia WPP announces that Wunderman, its wholly-owned global digital and relationship marketing network, has launched PT Wunderman Pamungkas Indonesia, subject to obtaining regulatory approvals. Wunderman is partnering with Rahadian Nugraha Agung and Tommy Prastowo for the launch of the new agency. Wunderman will merge its existing digital team and client portfolio into the new entity. Both Rahadian Nugraha Agung and Tommy Prastowo have extensive digital marketing experience from a range of digital agencies in Indonesia and join as Head of Planning & Strategy and General Manager respectively. PT Wunderman Pamungkas Indonesia offers full service digital marketing solutions to global and local brands and is located in Jakarta. This investment is a further step towards WPP's declared goal of developing its businesses in the fast growing economies of Asia Pacific, as well as Latin America, Africa and the Middle East, Central and Eastern Europe. Collectively, the Group, including associates, employs more than 46,000 people in the Asia Pacific region, generating revenues of $4.7 billion. In Indonesia, the Group, including associates, employs 1,300 people with revenues of over $80 million.

http://www.investegate.co.uk/Article.aspx?id=201208310700040405L

Panmure Gordon reiterated its "buy" recommendation for WANdisco (WAND) with an increased target price of 290p, from 261p. The broker pointed to the software developer's wide range of patent-pending technology and noted that it has a number of blue-chip clients such as Hewlett-Packard and Wal-Mart. Panmure added that the group is continuing to build its order book, with 1.84 million dollars (1.16 million pounds) worth of orders won in its second quarter, including its first sale in China, to telecommunications equipment company Huawei. The shares grew by 4p to 275p.

Shore Capital maintained its "buy" rating for 888 Holdings (888) following an in-line set of interim results and the reinstallation of an interim dividend at 2.5 cents (1.6p). The broker said that the online gambling company is establishing a strong position in regulated markets, such as Spain, France and the UK, and expects revenues from these markets to grow by 60% by the year end. Shore added that the firm is making progress in penetrating the US market, having been awarded a licence in Nevada, and believes that investors have fairly valued the company's growth potential in the country. Shares in 888 slipped by 0.5p to 87p.

Seymour Pierce reiterated its "buy" recommendation for Medusa Mining (MML) with a target price of 416p. The mining group fell 11% short of the broker's full year earnings forecast, although Seymour Pierce attributed this to pending payments on year end gold sales. The broker expects the firm to produce between 100 and 120 thousand ounces of gold in the new financial year, with growth to be driven by the completion of the Saga shaft in December. On the broker's forecast's the shares trade on a prospective earnings multiple of 10 times for the 2013 financial year. The shares gained 7p to 322p.