Companies: DSN   

Troubled LCD and computer maker Densitron relieved investors by confirming that it expects to report results in line with expectations for the year to December, thereby stopping a rot that saw two forecast downgrades in the space of two and a half months last autumn plus the resignation of finance director Carl Thompson. The update concentrates on the performance of the two Taiwanese businesses in which Densitron holds stakes - Hitech and VBest. Both are low-cost LCD makers, being respectively 45%- and 25%-owned by the company. Unaudited profits at them are said to be up by 15% and 160% during 2001 compared to 2000. However, shareholders will still be bearing losses on their shares, with house broker KBC Peel Hunt expecting a reverse of 2.1p per share after deducting 'minority interests' from the Taiwanese profits, so the latest update might be seen as more of a reassurance than anything else. Tellingly, house broker analyst Peter Joseph rated the shares as no more than a 'Hold' even at 24p, before they surged up in reaction to the news. The company is also yet to replace finance director Thompson, who departed the firm days before its profit warning in November. Avoid.