Good Morning,
A number of rumours (with BS Caveat) circulating, only as a result of the rebound in oil, the main one being that Afren has found a buyer. Having been a supporter of Afren pre-debacle and even post to a degree, it's quite simply beyond the realms of any possibility that someone would be interested in the company, save for a deal with bondholders.
Its alleged Gulf Keystone has a very interested interesting party on a joint venture. With limited information its been suggested that they party wants a 50% interest in the Sheikh Adi block, with an element of cash + carry. GKP are far from out of the woods, but all the same, their placing had significant interest and contrary to certain parties, still has interest.
Wolf Minerals (WLFE) really need to get some decent IR (Investor Relations) in. They stand to be punished for tardiness with slow and absent information. Today, as if by magic after the EMC commented on (EMC WLFE 24 April 2015) the outdated guidance, there is an updated presentation.
If certain Wolf Minerals employees are a reader, I'm free Tuesday's 9-12 if they need a complete overhaul of their IR, whereby information is timely and specific to the events in the market. In essence, keeping the market informed efficiently, rather than reactively! WLFE is a prime example of where the asset and management are good, the IR is ermm...limited and reactive.
Next (NXT) came out to with a trading statement that was in-line with guidance, and a significant amount of revisions by analysts in the sector upping their price expectations, circa 7700, the Next LO contingent can feel pleased!
Goldman Sachs really need to get with the programme, as their analysis really relies on where the price is, rather than where it will be. Quite how much of the growth in Next Directory is via the "new" Label concept. Remembering that the Label is for sale of third party branded products at lower margins.
Next will be thankful of the warmer weather and launch of their 'New-In' Brochure for the summer season, whether this continues is another matter. Perhaps, like most retail, save for "shoe companies", they had an added benefit of an early summer feel. One hopes that the UK summer has not just left us!
NXT have given the green light on anther special dividend due of 60 pence on 3 August 2015( if registered before close of business on 10 July). Shares will trade ex-dividend from 9 July, and with the benefit of a floor at 6827 (current buyback limit and no doubt under review), Next are likely to be range bound, 7880 - 7100 bottom.
Atb Fraser.
Fraser- Hi- yes, plenty of oil rumours at present- the Kurdish plays look much more secure re the ISIL threat now, they are producing at v low costs and importantly, the Erbil/Baghdad talls seem to have gone well recently and with the exports through Turkey ramping up through 650k bopd now, the signs are v positive and just need regularised payments to start up again for these plays to be on, in my book anyway. GNEL looks like the key asset, but GKP is cheap for those with deep pockets to move forward.
ReplyDeleteRe WLFE- lets do our own Investors Presentation together and sell it to WLFE??!! They still have tin at $20k/t despite updating 4 times this year, so some berk obviously needs have another look, especially at the all important page 24. The tungsten fig has been updated plus the 24/7 too, but still a D Minus from me for that "work" today.
Re NXT- the possible weaknesses from last qtr have been addressed in the main- NXT are quite good at looking after their business and making these tweaks so the cash cow continues to moo for me. Label appears to account for 2% of the Directory growth- its lower margin but still adds sales and profits, so the experiment is working for me. Fair value is adjusted to £75.40 here so a bit more to go and then we look again next quarter.
Cheers. The Leggie