Very interesting RNS out from TOM this a.m.
Chris Brown, TomCo's CEO, commented:
"This is an extremely exciting time for TomCo and our new subsidiary TurboShale. We believe we have found a collection of technologies that can be competitive at current oil prices and address the problems of producing shale oil from kerogen. While we continue to monitor the progress at RedLeaf, TurboShale allows TomCo to have greater control of its future development plans. There are estimated to be 3 trillion barrels of oil in the Green River Formation in the USA, and TomCo Energy has 126 million of these barrels in JORC Measured Category at the Holliday Block alone, so the prize for commercialising oil shale production is huge. I am very pleased that Ray Kasevich and Jeb Rong have agreed to join TurboShale and to work on the TurboShale™ Technology. I am also looking forward to working with Graeme Hossie again, who co-founded London Mining with me."|
|GOOD NIGHT FUN
Is this Preston's most 'pawfect' puss?
|Gold Sparkles On Risk Aversion
Gold futures continued to rise Monday, posting the highest settlement price in a month as traders expressed risk aversion.
April gold rose USD7.20, or 0.6%, to settle at USD1,255.70 an ounce. The advance has gold on the verge of its highest since last November.
Falling stocks and geopolitical tensions have lifted gold's safe haven appeal.
There was little reaction to nebulous statements on interest rates from Chicago Fed President Charles Evans.
Evans said that only two rate hikes this year "might be right" if uncertainty grows, but that there could be four interest rate hikes if "things take off."|
|Share of the week: A tech winner - By Lee Wild | Fri, 24th March 2017 - 17:20
We liked the look of Softcat (SCT) even before it came to market in November 2015. On IPO day shares in the software reseller, and officially the second-best place to work in the country, rocketed 20%. Progress since then has been less spectacular, however.
In fact, it's been a bit of a rollercoaster for the company, whose IT solutions to improve the technology, infrastructure and security of small and medium-sized businesses, as well as larger firms and the public sector.
It had traded at around 370p before the Brexit crash last June, but only briefly, and by December was back at 283p. There was already renewed optimism ahead of this week's interim results, but the numbers were the trigger for a 12% gain over the five trading days.
Fast-growing Softcat, the largest supplier of Microsoft (MSFT) software licencing, grew adjusted operating profit by over 9% to £21.4 million in the six months to 31 January on revenue up 29% at £378 million.
"The board is confident of meeting its expectations for the full year," said chief executive Martin Hellawell. "Whilst trading in the first six weeks of the second half has been strong, we have some important months ahead and we remain focussed on the job in hand."
A 14% increase in gross profit is clearly encouraging. As Peel Hunt analyst Richard Kauffer points out, this figure is key to gauging Softcat's progress. "[It's] tracking ahead of the 7% FY17E gross profit growth expectation baked into the consensus."
Softcat trades on 15.8 times consensus earnings, a premium to peers, although Kauffer thinks it should be more.
Number crunchers at Citi also believe the rating, which drops to 14 times if you strip out cash, "undervalues its high quality growth and optionality for special dividends".
The broker thinks Softcat shares are worth 410p. Berenberg's Benjamin May reckons it could be as much as 425p.|
|12 changes to this Top Picks portfolio - By David Brenchley | Mon, 27th March 2017
Stockmarkets have continued in buoyant mood globally well into 2017, with many, including the FTSE 100 and the S&P 500, hitting all-time highs. European markets have done well too, although gains for the STOXX Europe 600 have been more modest.
But, after the latest quarterly review, Barclays' European 'top picks' portfolio still offers average upside potential of 18%, with average potential to its upside cases of 42%.
There have been 12 changes this time, with some big names losing their place at the top table. The analysts still favour a value approach, backing stocks with earnings momentum over low-volatility shares, which they believe "still look 15% overvalued".
Once the dust has settled, the portfolio of 26 stocks – half of which are listed in London - trades on a forward price/earnings (PE) ratio of 16.2 versus 14.2 for the STOXX 600. However, earnings per share (EPS) are expected grow an average of 20.6%, almost three times faster than the wider market.
From a UK perspective, oil major BP (BP.) is removed from the list, as are fellow oilies Petrofac (PFC) and Ophir Energy (OPHR). Elsewhere, private equity firm 3i Group (III) and marketer WPP (WPP) are also out. Here are the three London-quoted heavyweights that take their place.
Coming in is mining giant Glencore (GLEN). Barclays analyst Ian Rossouw explains that there is an "unwarranted concern over its asset quality" and expects a broader change in sentiment towards the company.
He points out that the firm's copper resource grades are higher than its peer group; its coal business is equally, if not more, competitive; and its unit costs are lower and cash profit higher. Further, "it is difficult to argue that Glencore's industrial and marketing assets are anything other than tier 1 businesses".
Barclays is positive on Glencore, sticking a 390p target price on its shares, suggesting upside of 25% on the current 310p price. This is a view shared, as we highlighted last week, by fellow broker UBS, which has the same target price.
"We believe Glencore is in a strong position to step up returns to shareholders and benefit from the cyclical recovery in copper and zinc prices," UBS analyst Myles Allsop explained. "We expect this to drive meaningful upside to the share over the next one to two years."
Another addition to Barclays' list is drug major AstraZeneca (AZN), despite a "tough year" coming up, with the dividend of 4.4% uncovered by earnings for the third year in a row. The broker sees 20%-plus upside from Astra's current price of £49.46 to £60.
Analyst Emmanuel Papadakis accepts that his thesis could be thrown into turmoil depending on the results of the firm's key immune-oncology trial, MYSTIC, but sees the risk of total failure as near zero. He notes that Astra's "suite of supporting pipeline assets is broad", with many due to deliver key news in 2017.
Astra is another stock also backed by UBS, with Jack Scannell expecting a substantial stock move on positive news regarding MYSTIC and a re-rating thereafter.
A company Barclays is less bullish on, but still brings into its portfolio, is financial services firm NEX Group (NXG), formerly named ICAP before the sale of its broking arm to Tullett Prebon in November for £1.1 billion.
This leaves the re-born company with two main divisions, electronic trading and post-trade services. It has a 615p target price, 7.1% potential upside from its current 573p level.
NEX has replaced 3i as Barclays' top pick in the diversified financials sector due to the potential for underlying growth and multiple re-rating. Analyst Daniel Garrod expects "a better trading volume outlook for 2017 versus 2016 and regulatory pressures driving customer demand for post-trade and risk optimisation services".
"NEX has outperformed the market by 34% year-to-date versus the FTSE All-Share's 2.9%," Garrod added. "However, we still think the valuation is not stretched at 18.3 times 2018E price-to earnings."
A duo of European oil-based companies are also in: Spain-listed Tecnicas Reunidas, which replaces Petrofac; and Swedish exploration and production company Lundin Petroleum, Ophir's replacement which has core operations in Norway and South East Asia.
Banco Santander replaces Société Générale in the banks sector and WPP's like-for-like is Germany's Scout24. Swedish-Swiss conglomerate ABB and German retailer Metro AG make up the additions.|
|Stocks Close Flat Following Choppy Trading Day - US Commentary
After initially coming under pressure, stocks showed a lack of direction during trading on Monday. The major averaged spent the day bouncing back and forth across the unchanged line.
While the Nasdaq inch up 11.64 points or 0.2% to 5,840.37, the Dow slipped 45.74 points or 0.2% to 20,550.98 and the S&P 500 edged down 2.39 points or 0.1% to 2,341.59.
The initial drop by stocks came amid weakness overseas following the decision by Republican leaders to withdraw their bill to repeal and replace Obamacare.
Late in the trading day last Friday, House Republican leaders decided to withdraw the bill amid indications of a lack of support.
The move came despite vigorous efforts by President Donald Trump and House Speaker Paul Ryan, R-Wis., to build support for the legislation.
A number of more conservative lawmakers opposed the bill amid criticism that it did not go far enough to repeal the provisions of Obamacare.
Moderate Republicans were also concerned about predictions the plan would cause millions of people to lose their insurance.
Even if the Republican healthcare bill had been approved by the House, the legislation was expected to face an even tougher uphill battle in the Senate.
The inability to advance the bill has cast doubt on Trump's ability to deliver on promises of increased infrastructure spending, tax cuts and deregulation.|
finishing 45 points lower so recovering a bit from earlier|
Ascent Resources: Price channel points to 4p
By Zak Mir
It has not exactly been an easy ride in terms of the recovery at Ascent Resources (LON:AST); but of course, that is where we get the stock market adage regarding a wall of worry.
Given the share price history of Ascent Resources over much of the recent past, it may be understandable that one approaches any fundamental or technical analysis here with a sense of trepidation. However, in such circumstances it is usually wise to focus on the news-flow and attempt to draw conclusions accordingly. It also helps that since last summer at least, the price action has been on a relatively even keel.
The starting gun for the improvement was arguably in the wake of the gap above the 50 day moving average in August, then in the sub 1p zone, something which was effectively one of my so called “rocket launcher” turnarounds. Indeed, we can see how since then support for the shares has come in almost exclusively at the 200 day moving average, now at 1.42p, which is what you would expect in bona fide strong recovery situations.
As for what may happen next in the wake of this month’s announcement of a customer for its Slovenian gas, we see progress within a rising trend channel which can be drawn in from as long ago as June last year. The big 3-6 months target here – while the 200 day line is held – is as high as the top of last year’s trend channel at 4p.
Zenith Energy: The journey ahead
By Master Investor 27 March 2017
Master Investor: Andrea, it is a pleasure to have you exhibiting and presenting at the Master investor Show this year. First of all, I would like you to please introduce your company, Zenith Energy Ltd., which you have recently listed on the London Stock Exchange, and which is also listed on the Toronto Stock Exchange in Canada.
Andrea Cattaneo: Zenith Energy Ltd. is an international oil & gas production company listed on the Canadian TSX Venture Exchange (ZEE) since December 2008 and recently, in January 2017, achieved dual listing on the London Stock Exchange (ZEN).
The Company’s overarching strategy is the acquisition of large onshore oil & gas fields in countries that offer strong asset protection and a business atmosphere conducive to stable and profitable production activities.
Zenith’s primary focus at present is Azerbaijan where, as the only junior independent oil and gas producer, it operates the largest onshore oilfield of the country. The Company also has operations in Italy with a number of gas producing concessions as well as a stable production of electricity and condensate.
MI: The field rehabilitation programme, specifically the well workover programme, began towards the end of January, with the aim of increasing your current production to 1,000 bopd (barrels of oil per day) by 31 March, 2018. We should remember that Zenith’s oilfields, Muradkhanli, Jafarli and Zardab, previously produced in excess of 9,000 bopd, with peak production even reaching 15,000 bopd during the Soviet Union period. Can you explain what has happened since then and also would you like to expand on your plans to achieve a 1,000 bopd production target within the next calendar year?
AC: Following the independence of Azerbaijan and the fall of the Soviet Union, a decisive energy strategy shift took place with the offshore sector being ascribed primary importance.
This meant that the relatively less productive onshore domain was overlooked. Zenith’s field, the largest onshore field in Azerbaijan with a geographic extent of 642 square kilometres, whilst highly productive during the Soviet Union period with a peak production of 15,000 bopd when the field was recently discovered and had undergone extensive investment, gradually declined due to a series of mechanical failures and lack of material investment.
Zenith’s technical team is confident that with a systematic field rehabilitation programme and well workover activities the field can achieve a sizeable increase in production by March 31, 2018. The fact that Zenith’s 2P reserves have independently been assessed at 33.4 million barrels of oil further supports our confidence. The oil is in the ground and with our favorably low production costs of $12 per barrel (this cost is projected to decrease as production increases) we have all the ingredients necessary for a very positive future development.
It should also be noted that well workovers are relatively low-risk and low-cost operations and are funded by the healthy cash flow generated by our current production of approximately 300 bopd.
I am expecting the results of our first workover, Well M-195, to be available shortly.
MI: Zenith generates regular cash-flow from its Azerbaijan operations, with timely and reliable payments from SOCAR and a very rare low cost of production. Similarly, in Italy, you have stable production of gas, condensate and electricity that also generates regular cash-flow. What are your long-term goals for the company?
AC: Zenith presents a great opportunity and I am confident in saying that we remain very undervalued. The market still hasn’t appreciated the size of our asset, the amount of oil reserves in the ground and our very low cost of production.
My primary goal is to lead an ambitious but prudent expansion of the Company to what can be described as a ‘mid-cap’;.
We have the strongest and most reliable partner possible in Azerbaijan, namely the national oil company, SOCAR, and our field rehabilitation programme which began on February 9, 2017 has a production target of 1,000 bopd by 31 March, 2018. We have a long road ahead but we have every reason to believe that we can achieve this target through our technical and operational abilities.
Whilst our primary focus remains the rehabilitation of our field in Azerbaijan, we are always evaluating new oil & gas production opportunities for further expansion. My primary goal is to lead an ambitious but prudent expansion of the Company to what can be described as a ‘mid-cap’;.
MI: Zenith has a privileged position in Azerbaijan, being the only independent oil & gas company in the country. You are based in Baku with your operational team. Can you give us some background on how you are managing the operations and your relationships within the country?
AC: Zenith is a company run from the field. I spend the majority of each month in Baku overviewing operations and developing our local relationships. I then usually alternate between Canada and the United Kingdom for the remainder of the month. Zenith’s management has strong and effective relations with SOCAR; indeed these relations are the reason we entered the very prestigious oil and gas arena of Azerbaijan. It is worth underlining that Zenith is the only junior international oil & gas company operating in Azerbaijan.
MI: Plenty of news is expected this year. Can you tell us more about your news flow and whether you are considering any further acquisitions?
AC: Expansion is always on the agenda but success in exploiting our transformational opportunity in Azerbaijan is the primary goal. If we achieve our production objectives, we will be in a very strong financial position and will eventually be able to possibly return some money to our loyal investors through dividends. Making further acquisitions will also bring us closer to achieving our long-term ambition of mid-tier status.
Zenith is evaluating at least three new acquisitions at any one time. Such negotiations have a high degree of mortality, as market positions and vendors often change without warning.
A deal can only be considered finalised when it is signed and completed. By keeping an open eye for further expansion we will be in a position to possibly acquire further assets with vast upside potential in the near future.|
loobrush27 Mar '17 - 18:42 - 1111 of 1111 2 0
Tip tv today says oil to flow a couple of weeks.
At 1500 barrels a day would equal profits of £10 million plus per annum
With a market cap today at 10p Angus is valued at £23 million-with £10 million coming in per annum the share price is seriously undervalued and I would expect a huge jump very shortly.
AGM is this week-wednesday so maybe news then.|
Though the Mms tried to keep thee share price lower at the end of the day the final UT came much better than the 83p offer YES it was 83.75p
|How the UPS are performing during last month|
|How the UPS are performing today|
|SOU 82.75 v 83p +0.125p
order book much stronger now as share price goes level after this drop sharp drop, most likely a short of capitulation provoke by MMs
DEPTH of 52 v 33|
has opened well down and although recovering is still 106 points on the red|
CURRYPASTY27 Mar '17 - 10:50 - 883 of 884 1 0 (premium)
5 mm's on bid, 1 on ask.. ask looks to tick up on a couple more buys, imo|
lithological heterogeneities27 Mar '17 - 14:11 - 1110 of 1110 1 0
i think this has been massively overlooked and will make many of us very wealthy once we begin production,especially if we achieve 1,500 bopd as hoped.
would imagine we will be at 50p+ later this year.|
|ANGS still ticking up ahead of news....|
|BoE: Brexit, Household Indebtedness Main Risks To UK's Financial Stability
LONDON (Alliance News) - The Brexit and high household indebtedness are some of the main risks to UK's financial stability, the Financial Policy Committee of the Bank of England said Monday.
At its March meeting, the committee judged that the overall level of risks to the financial stability was broadly unchanged since its last meeting in November but its assessment of the relative weight on the various risks has shifted somewhat.
The bank observed that household indebtedness remains high by historical standards. Consumer credit has been growing particularly rapidly. According to FPC, this could principally represent a risk to lenders if accompanied by weaker underwriting standards. The bank said the lending standards should be monitored closely.
Exit negotiations are set to begin shortly. The FPC observed that risks to financial stability will be influenced by the orderliness of the adjustment to the new relationship between the UK and the EU.
The bank cautioned that sudden adjustment could disrupt the provision of market liquidity and investment banking services, particularly to the EU real economy, which could spill back to the UK economy through trade and financial linkages.
Further, the bank noted that in the global economy, although near-term prospects have improved, risks remain elevated.
The bank is set to carry out stress tests on banks to check how they might cope with difficult economic situation. The seven banks and building societies take part in the 2017 test.
The stress tests include two scenarios namely annual cyclical scenario and biennial exploratory scenario. Results are due in the fourth quarter.|
|EKT 7.375p =
Elektron Offloads Digitron As Part Of Portfolio Rationalisation
LONDON (Alliance News) - Elektron Technology PLC on Monday said it has completed the sale of Digitron for total gross proceeds of GBP300,000 cash, which will be used for general working capital purposes.
The global technology group said Digitron, a manufacturer of instruments for pressure and temperature measurement, has been sold to the British Rototherm Co Ltd. Digitron generated sales in the 12 months to the end of January 2017 of GBP1.4 million and "brand contribution" of GBP60,000.
Brand contribution is an internal measure of profitability before the allocation of certain group pooled costs such as finance, information technology and human resources, Elektron said.
"After making a deduction for a fair share of these costs the board estimates the Digitron contribution to be immaterial for the year ended January 31, 2017. The total gross consideration represents the approximate net value of the Digitron assets being transferred," said Elektron.
"As previously announced, the sale is part of the group's rationalisation of its portfolio, focusing its investment on the core segments of Bulgin, IMC (Instrumentation, Monitoring & Control) portfolio and Checkit. Elektron is continuing to transform its business, building a technology-led company through its strategy of innovation, streamlining operations and investing in infrastructure, people and capabilities," said the company.|