Share Talk – Steve Shares 22nd April
Share Talk – Steve Shares
Welcome to Steve Shares. This publication is an interactive weekly update on what’s happening over social media and the trending stocks that have made the news this week. I highlight and comment on the coming news and events in connection with the trending stocks. I provide a round up of Share Talks key company’s interviews over the last week. If you think that a certain share or a key news item should be reported on be in the next edition, let me know by contacting me my details are at the bottom of the page…
Please keep those ideas and suggestions coming if there is more you feel we can be doing to help you and your investment journey…
If there is a share, event or person on social media that you would like to spread the news about or say thanks to let me know and I will cover these in the next publication of Steve Shares.
Last weeks Steve Shares was well followed and firstly apologies to those who I informed that I will include the write ups to the company’s covered on the previous weeks TipTv which created a bit of controversy. I am glad you were able to look at the previous weeks write ups and apologies for not getting back to you earlier this week as I was away…! I have had a request to look into Savannah Petroleum SAVP this week so have put my thoughts onto virtual paper below. As always I am happy to give my thoughts on any company, if there is one let me know!
This week I have not covered any shares as I was on holiday! However if there are any shares you would like me to cover feel free to contact me, my details are at the end of the blog.
This weeks stocks…
Savannah Petroleum Plc (SAVP)
I have been asked to look at Savannah Petroleum this week. With the business being based in Niger Africa there is a possible element of investors thinking of political risk, however they have been in country for a while and have met and exceeded time as well as price targets. The focus of Initial drilling campaigns are targeted on the R3 PSC area and sits within a proven petroleum area. They call it the “sweet spot” in the basin, with some of the largest discoveries located in adjacent areas to the north and south, including producing fields. The are is located in close proximity to existing and also planned infrastructure within the area. Initial indications from the recently completed R3 East seismic survey confirm the existence of multiple fault blocks, which have similar configurations to the adjacent fields and discoveries.
An R3-focused programme has been mentioned by the company which will allow for testing of multiple zones and will be testing multiple zones, this is a cost saving and prudent way to test the play and further de risk the area with the drilling campaign. Savannah announced they were offered the opportunity to use a rig that was coming off contract from another operator, this should again be a prudent move as the rig is not coming out of mothballs. Now down to the nitty gritty of risk versus reward.
The next move was effectively covered Yesterday were there was a presentation evening with thoughts around the next set of potential news. They have been talking and are planning to allow a Joint Venture partner in in the project, notes on social media have put prospective targets of share prices of up to £2 on a prospective deal at $250mn at 50%. As always caution is needed and await an announcement of what deals are to be done and how the structure is to be done. My initial thoughts are that they are working in a prudent manner befitting a company with its market capitalisation, as always time will tell, I will comment further next week when I have hopefully been in touch with the company!
SDX Energy (SDX)
Covered by Steve Shares from November last year when they released their operations update where they stated they had identified the potential of Gas as well as Oil in play at South Disouq the company this week was happy to announce that they have reached its first target depth in the Abu Madi where conventional natural gas bearing horizons were encountered! Massive well done to the company and holders. The well encountered 65 ft of net pay section with an average porosity of 25% and are in line with pre-drill estimates. Additional evaluation work is currently under way to provide an accurate recoverable volume estimate which will be the subject of a subsequent release. No mention of if this will be commercial however it should be due to the region it is in.
Drilling will now continue to the deeper Abu Roash and AEB sections where they have targeted oil. With the expectations being met hopes are that they will hit the oil that the 3D data has shown should be there. I wish a well done! for current holders and also hope for holders that the next news is of an oil discovery! As always time will tell but I have a good feeling on this one! Don’t forget that they have already got wells in production and other plans on going as well…
Ferrum Crescent (FCR)
As with all mining company’s timing is a critical part as when to invest and so is news flow, I have been asked to highlight Ferrum Crescent as it seems to be undervalued as where it was to where it is now. With two separate projects in play in Zinc as well as its Iron Ore project which are progressing along. However last weeks news has been well met with old holders as well as new possible holders asking why the slump in the share price. With the risk now in South Africa the moonlight project seems to be on the back burner as the political prospects seem to be repressing many businesses. However the news last week could be a game changer. With historic data showing the levels of Zinc and other minerals in place and now a better understanding of the Geology with the Project Manager in place they announced a drilling contract in place.
The planned drill programme will further test mineralisation down to a potential vertical depth of 150m from surface in a series of angled holes up to 250m long. Preparation of the drill sites is already under way and mobilisation of the rig to site is anticipated to occur within a month.
Access to all of the drill platforms is via existing roads and tracks. The diamond drilling contract is for a minimum of 1,400m and a maximum of 2,100m and is expected to take up to three months to complete. With many company’s showing gains of hundreds of percent when drilling announcements are made and the grades in place here already known could this do similar? Can a deal on Moonlight in South Africa now be concluded? Time will tell but lets see what happens over the summer period.
Covered during the takeover offer period and subsequently on the watch list to see what their review would hold this week has seen the announcement that although they have increased their products costs their revenues are up and said it is on track for its underlying sales growth target in 2017. After reporting an increase in revenue for the first quarter. With its first-quarter revenue increasing by 6.1% year-on-year to EUR13.30 billion, including a positive currency gain of 2.4% and underlying sales growing by 2.9% all seems good.
Driven by a 3.0% rise in prices which it said more than offset a 0.1% fall in volume. The company noted this was ahead of the wider market figures, where growth was around 2%, with negative volumes. With Easter falling outside of the quarterly reporting period this means they should be a step ahead before they start the next quarter. The interesting thing from the report is that it was to cover loan costs etc so the rise of 12% year on year in the dividend payment was a welcome one to be 30.21p per share. A simple question however is how long can one of the biggest owner of branded products, which are in every household, sustain a growth of this level? How long can the share price maintain the highs? Apart from the dividends is there a reason to invest at the current levels?
What company’s do you consider undervalued and news items that the market has missed…? Let me know and I will announce via the next issue of Steve Shares…
My thought of the week
Lots of thoughts this week surrounding relaxing moments. Thoughts of what this new financial year will bring and the changes that might happen in political circles and wondering if people pay attention to the Macro and Micro economics that surround company’s they might possibly wish to invest in? Or is it all about the individual company’s and the ‘Trade’ at any given moment in a share?
Share Talk round up – Interviews and updates
Share Talk Presents an interview with Greatland Gold http://www.share-talk.com/share-news/ernest-giles-aimggp-ernest-giles-commencement-of-work-programme/
Share Talk Presents an interview with Kryptonite1 plc http://www.share-talk.com/share-news/george-mcdonaugh-ceo-kryptonite1-plc-nexkr1-interview/
Share Talk has Presented lots of other articles and can be found here http://www.share-talk.com/share-news
Let me know what should be in next weeks article and I will report on the shares that matter to you…
Email – Steve@share-talk.com Twitter – @slarratt1 Tel – +44 (0)7963777475
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned