Following the issue of $7.9bn of new shares in the IPO the enlarged company will have a market capitalisation of $61bn at the mid-point of the flotation range.

“Ivan Glasenberg [Glencore chief executive] is determined to price a deal that has a great after-IPO performance,” said a person familiar with the IPO process.

At this stage Intel has always failed to come out for a decent product. Its technology is far too power hungry. Did you notice that PCs needed fans because the intel chip heats up….If they were to suceed that would be a game changer.

Our view is that ARM is over priced on 48x 2012 PE. And we beleive investors over estimate the ASPs of the chips in some of the new products (smart phones, tablets etc…) that are coming out. As Archos (roadshow we did a few weeks ago) CEO explained the tablet market will be driven by low end products at less than 300Euros….not by the Ipad and high end competitors at prices of Eu 500-600.

That could soon change. As reported, Apple and Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) have entered into a foundry relationship for the A5 and follow-on chips, sources said.

We continue to expect to buy back in the region of £160m of shares from surplus cash flows in the current year, of which we have already spent £90m buying 4.3m shares. We estimate the combined effects of share buybacks and cash generation will be to move EPS forward by 6% more than the growth in profit.

I have your voucher which you can pick up from me anytime. It entitles you to a 3 course lunch with wines chosen by their sommelier.

We are moving our recommendation to Hold (Buy since 21 December 2010).and downgrade our price target to 15p. 1) Current trade is reported to be below expectations. 2) The debt position appears to be worse than projected – net debt at end of February was £14.4m vs. £12.6m in the previous year despite a capital raising of £19.5m – so a fund raising over the next twelve months is a probability and 3) The appointment of Julia Reynolds as CEO as replacement to Neil Gillis will lead to uncertainty over strategy in the short-term. We are increasing our pre-tax loss forecasts for FY12 from £1m to £3m and now do not expect the company to break even until FY14. We still maintain that Blacks Leisure is an attractive brand as shown by the bid interest in the company at the beginning of the year and the restructuring, in particular the CVA will eventually lead to profitability.

4 May – Logica Q1 update indicating that UK revenue was down 4% YOY, with public sector revenue falling 9% YOY. While the group sees good medium term opportunities in the public sector, the current environment is of slow decision making.

4 May – BBC story suggesting that “plans to outsource public services scaled back.” Leaked documents relate to a meeting between Cabinet Office Minister, Francis Maude, and the director general of the CBI, John Cridland. The note from the meeting says – “The minister’s messages were clear cut… the government is committed to transforming services, but this would not be a return to the 1990s with wholesale outsourcing to the private sector – this would be unpalatable to the present administration.

“The government was not prepared to run the political risk of fully transferring services to the private sector with the result that they could be accused of being naive or allowing excess profit making by private sector firms.” See – http://www.bbc.co.uk/news/uk-politics-13273932″>http://www.bbc.co.uk/news/uk-politics-13273932

· While companies indicate that they expect demand for services to strengthen by H2 2011 (some have recently pushed this into early 2012), we believe that prospects will remain weak for considerably longer.

· To achieve the rate of revenue growth the market expects, public-sector outsourcing rates need to climb from 33% in 2009-10 to more than 43% by 2014-15. Even under a Conservative-led coalition, we think this unlikely.

· Margin pressure will be a key theme medium term. In the short term, cost cutting may help offset this, but, with the government intent on fostering greater competition among its suppliers, lower pricing terms are likely to emerge.

· In-house teams are well aware of budgetary constraints and are becoming more competitive in tendering for contracts which presents the government with a politically more acceptable solution.

· Our 2012 EPS forecasts are 5% below consensus for both Capita and Serco. We believe that overall, volumes and margins will both fail to meet current consensus expectations. With few exceptions the sector trades at multiples which fail to reflect this.