Companies: AIP    BLND    CMP    CRDA    FPT    HTH    LAND   

A recent spurt of positive activity amongst the Small Caps, particularly in the 'old economy sector', illustrated that opportunities for investors still abound outside the spotlight of the FTSE 350.

A good example is the transport sector, which rallied during November from 2792.27 to 2861.89. One dynamic performer was the air charter broker Air Partner. Its share price lifted to 345p from 330p over the month following the publication of an exciting full year report. Although pre-tax profits slipped to £2.67 million from (£2.78 million), the company has undertaken a significant investment programme. Its charter sales increased in all divisions except Germany, whilst the group achieved a 67 per cent increase in its US sales. As part of its rapid development, new offices were opened in New York, Zurich and Vienna. Two exciting new ventures were initiated. The first, called Air Partner On! Line, is an airline internet trading post and the second, Rapid Air Support, is an overseas employee evacuation service.

The real estate sector also sparked into action, rising from 2106.42 to 2112.24. Strong performances were posted by the likes of Compco, which lifted from 296.5p to 312.5p, and Frogmore Estates, which added 18p to its share price, closing the session up at 533.5p.

Not burning so brightly were property giants such as Land Securities and British Land. Investors looking for opportunities in this sector, however, might be interested in the fact that the share prices of these two are languishing at up to 40 per cent below their NAVs. Analysts have commented that with market conditions relatively strong, property company share prices are being treated 'churlishly' by investors.

The chemicals sector, which has suffered more than most as a result of the techs stock boom, has had little to cheer of late. However, a significant upturn in the sector from 2032.10 to 2359.13 occurred this month, prompted by good results from larger firms such as ICI. Croda managed to lift its share price following the disposal of its world-wide adhesives business for £44.5 million to Sovereign Speciality Chemicals in the US. According to finance director Barbara Richmond, the intention of the sale was to reduce the group's borrowings in the short term and develop its ongoing strategy of 'reducing reliance on industrial chemicals'. She suggested that the share price rise from 214p to 237p was a result of the general performance of the sector and the group's move towards 'high-value-added oleochemicals'.

Another flourishing stock was chemicals and polymers distributor Ellis & Everard. In his chairman's statement last month, Keith Hopkins stated that with first quarter profits running 9 per cent behind last year, the board was 'considering all options to improve shareholder value'. Its lowly share price lifted 22p from its previous 2000 high of 261.5p to 283.5p on news of a takeover approach, thought to be from the Dutch bulk storage and distribution group Vopak.

Over amongst the shipping plays, Forth Ports shed 35p to 642.5p after it announced it had terminated bid talks. The company had been in talks with several private companies but the board pulled the plug as differences about valuations proved insurmountable. Chief executive Alistair Fleming commented that the valuations 'fell short of what we felt to be a reasonable value for the company'.

One company that could come into its own over the next few months is laboratory furniture and fume cupboards manufacturer, Hartest. Despite publishing impressive interim figures at the end of October - turnover £6.6 million and pre-tax profit £473,000 - and clinching two important contracts with a value of £4 million - the group is valued at just £8.5 million. A spokesman at house broker Seymour Pierce characterised Hartest as a 'real company' with a skillful management team and a pro-active chairman in David Leeming. As Hartest moves beyond its core furnishings business into the more 'sexy' instrumentation area, the feeling among analysts is that the stock might begin to bubble over. Forecasts for the year to February 2001 suggest that the group could experience significant growth. Turnover is expected to hit £14 million and pre-tax profit £1.2 million.