Silicon Fen Top 20 Index sheds 4% in June; buttressed by CAT
The Silicon Fen Top 20 Index*, which entered June at 128.65, close to its highest level, shed 8.7% to reach 117.38 by the middle of the month. Since then it has staged a steady recovery to close the month at 123.55, 4% lower.
Its performance would have been worse had it not been for the AstraZeneca takeover offer for Cambridge Antibody Technology (CAT.L) buttressing it. The offer was made on 15th May at a 70% premium to the existing market price. This was the day before the Index, along with many other market indicators, reached its recent peak before the widespread turmoil in markets set in.
It might be a timing that it has come to rue, but AstraZeneca has since wrapped up CAT. It has moved to compulsorily acquire the few shares (4% of issued capital) it didn't snare with the generous offer and will delist CAT on 28th July. The Silicon Fen Top 20 will lose a heavyweight.
The shooting star of recent months, Bluetooth market leader CSR (CSR.L), didn’t have a good month. It lost 16.5%, probably as many investors found it hard to resist finally taking some very good profits. Indeed, some directors decided to do so. Nevertheless, the market mood around CSR has changed for the better because of the realisation that Bluetooth technology will be used in more than just mobile phones. It is no longer seen as a stock with only short term appeal.
Steady progress
There was more steady progress for ink jet specialists Domino Printing Services (DNO.L). Its share price gained 6.5% in June, following 5.9% in May. Its market capitalisation is now around £313m.
Speciality pharma BioProgress (BPRG.L) is also making steady progress on the back of its new corporate strategy. It gained 3.4% in June, after being up 2.8% in May. These may seem modest increases, but they are notable for occurring in a falling market. It now has a market capitalisation of £60m.
Data encryption specialist nCipher (NCH.L) seems to have stabilised after the aborted takeover by SafeNet that fell foul of the UK competition authority. It was unchanged on the month. At 209.5p, it is worth about £52m. As this is roughly the same as pre-takeover levels, it hasn't been dragged down by general market weakness. Perhaps it has gained some extra stature from the takeover's rejection. A firm must be a significant player to be blocked on anti-trust grounds.
Although pay platform software house Bango (BGO.L) gained 8.7% in June, it had a very poor time in May. It will need to increase further in July if it is to remain in the Top 20 when the Index is recalculated next month.
When CAT leaves, it would, at this stage be replaced by former member CMR Fuel Cells (CMF.L), currently valued at £36.7m, even though it shed almost 16% in June. If Bango's share price doesn't fully recover, it may well be replaced by Celsis International (CEL.L), the rapid microbial detection and analytical services company, valued at £36.53m.
Gainers, losers
Overall, nine of the Top 20 stocks gained on the month, while nine were down. Two were unchanged.
Here's how the top 20 shares performed in June:
• ARM Holdings - down 3.4%
• CSR - down 16.5%
• Autonomy Corporation - up 0.2%
• Cambridge Antibody Technology - up 1.8%
• Domino Printing - up 6.5%
• Alizyme - down 14.9%
• Aveva -down 6.7%
• Acambis - up 5.6%
• Xaar - down 3.1%
• Cambridge Display Technology - down 1.5%
• Medical Marketing International - up 5.9%
• Abcam - up 3.7%
• Dialight - down 1.3%
• Amino Technologies - down 5.6%
• BioProgress - up 3.4%
• nCipher - unchanged
• Bango - up 8.7%
• Plasmon - unchanged
• Intercytex - up 0.5%
• Prelude Trust - down 4.2%
*The Index measures the share price movements of the Top 20 companies in the region around Cambridge known as Silicon Fen as measured by market capitalization. (It appears on the left side of the web site, and is regularly updated during the day).
Because the companies are headquartered in Silicon Fen, the index is an approximation of the collective shape of the Cambridge Cluster's profitability and performance - its bottom line - as a company's share price usually reflects its performance and potential.
3rd July, 2006
