Small caps: Burst Media warms to Blinkx interest

Online advertising group’s shares surge

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Burst Media Corporation was by some distance the best small-cap performer on Friday.

Its shares surged 390 per cent to 24½p after the online advertising group recommended a 25p a share offer from Blinkx, the online video search group. Meanwhile, shares in Blinkx rose 10.1 per cent to 122p as investors warmed to the deal and news that full year profits would top City forecasts.

“Over time it should allow Blinkx to expand the reach of its ad offering,” said Citigroup, “This will become especially exciting when video advertising is rolled out across Burst’s network,” it said. Burst claims to have an audience of over 130m unique users.

Mouchel, the troubled outsourcing group, ended another difficult week on a positive note. Its shares rallied 14.1 per cent to 86¾p following “buy” advice from Brewin Dolphin.

“There is much to prove and indebtedness remains a key concern, but a clean audit opinion would not have been reached lightly and Mouchel has a strong industry reputation and exposure to some markets with good long term potential,” it said, setting a 12-month target price of 139p.

Games Workshop, the maker of war games models, advanced 12.8 per cent to 417½p after predicting results would beat City forecasts and it would accelerate dividend payments.

“We are upgrading our 2011 forecasts by 25 per cent, as the gross margin and cost reductions are higher than expected and restructuring charges lower than anticipated,” Peel Hunt said.

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