On the hunt!
There’s a takeover on the way at Encore oil. Rumours of Premier oil coming back for the company are being openly discussed. Back in late January early February there were strong rumours of a 200p Premier bid being discussed the recent fall in the share price due to the downgrading of Cladhan and the north sea tax hike coupled with the company cock-up of the XEO float have rocked the sp however it is looking like a move is on the cards here from one of their partners. Premier being the one most likely.
TAKEOVER! Is back on the agenda here!
Make of it what you will but at these prices they are at bargain basement. The recent Director buys are being espoused through-out the trading houses as a vote of confidence in the company by the Board. Expect more Director buys. This share is hotting up in anticipation of a Premier Oil bid! 100/110p being the range.
And here’s a few wise words from the sector watcher!
“Adding cash/investments gives a further 13p/share, i.e. a total of 85p/share, or 50% above the current price. Clearly the disappointment in Cladhan has a had a devastating impact on the shares, as recently as February there were strong rumours that Premier Oil was thinking of launching a 200p/share takeover bid for the company. However, I’d say that if PMO wasn’t looking at the group then, it certainly should be now, especially with its huge pool of North Sea tax losses, meaning that the Cladhan/Catcher reserves would theoretically be much higher value than our assumed $12/barrel. Moreover PMO would be using a much lower cost of capital than 12%. Hence at these depressed levels I’d be tucking a few away.”
Viva!
Daniel
You get ALL the breaking news here on the BMD roadshow!!!!!!!!!
Dan
Surely Directors are not allowed to buy if they have any knowledge that a T/O is coming !!!
How much advance knowledge would they have?
contact via nomad of approach from a third party…doubt the offeror would want any approach to be known about ahead of them stating their intention publicly
Thank you! :))
Hey Dan’ thanks a lot, any time frame in mind?
Old Story now…………
Come on BMD……….
We need to think ahead now…………..
Read below from todays sector watcher.
Adding cash/investments gives a further 13p/share, i.e. a total of 85p/share, or 50% above the current price. Clearly the disappointment in Cladhan has a had a devastating impact on the shares, as recently as February there were strong rumours that Premier Oil was thinking of launching a 200p/share takeover bid for the company. However, I’d say that if PMO wasn’t looking at the group then, it certainly should be now, especially with its huge pool of North Sea tax losses, meaning that the Cladhan/Catcher reserves would theoretically be much higher value than our assumed $12/barrel. Moreover PMO would be using a much lower cost of capital than 12%. Hence at these depressed levels I’d be tucking a few away.
Surely the recent directors buying puts doubt on rumours of an approach, it would look just too dodgy if an approach was announced anytime soon ?
Happy to have anything to kick the price up at the moment but souns more like somone starting a gossip
Read below from the sector watcher today.
Adding cash/investments gives a further 13p/share, i.e. a total of 85p/share, or 50% above the current price. Clearly the disappointment in Cladhan has a had a devastating impact on the shares, as recently as February there were strong rumours that Premier Oil was thinking of launching a 200p/share takeover bid for the company. However, I’d say that if PMO wasn’t looking at the group then, it certainly should be now, especially with its huge pool of North Sea tax losses, meaning that the Cladhan/Catcher reserves would theoretically be much higher value than our assumed $12/barrel. Moreover PMO would be using a much lower cost of capital than 12%. Hence at these depressed levels I’d be tucking a few away.
Encore are definatley under valued at the mo Dan. I don’t think any one can really doubt that there will be a TO the question is when. Booth told us all at the AGM that he didnt think he would be here come Xmas and its being reported not only on here as to Premiers interest but also from the ft and some of the brokers who think they are ripe for a Premier TO.
Dan whats happening to AMINEX :(!
Please reply to this email an explain.
There’s nothing happening that could be construed as adverse. It’s more than likely the threat of meltdown from PIGS. LOT OF NEGATIVE SENTIMENT OUT THERE AMONG THE CITY.Especially the ongoing turmoil in countries such as Libya,Iraq,etc and the general uneasiness that is pervading the whole of the middle east. Global worries fuel flights to cash and away from risk.
Dan
Thanks to your reply. Sometimes you cant help tothink many traders are short-sighted. What sp targets were you setting for Aminex if you could recall?
Thanks mate
Also it seems mostly the ii’s that are pushing this share down rather than scared investors – in total there was 700000 of sells towards the close today. Any views on why the ii’s might be selling? Only reason i can think of is because of other investment oppurtunities. I appreciate aminex may not be your forté but i really think its great you reply to messages personally 🙂
I’m sitting on a pretty poor average price. Is this figure of £1-£1.10 fair and likely..? If so then it would be a massively disappointing end to my own personal Encore adventure!
Do you really think Encore will accept a bid of 100p a share ? That’s a bit worrying as I thought they would go for at least 150p +….Thoughts?
I think they are having their hand forced. The whole North sea theatre has reacted and performed poorly since the tax hike. They should of took the 200p from PMO.
Dan