RE:RE:Chrisoil Saturday commentsIthaca Energy (IAE) Part 2 North Sea Multi Bagger Company BUY
Following on from Part 1 introduction.
Part 2 is about the number crunching and exciting aspects coming out of the 31st March results based on my personal view..
Clearly there will be $100m in savings as a result of the nine month delay of stella which has not been taken into account and forward numbers for example 31.12.2016 £407m turnover pre tax £158m forecast.
Large numbers on a market cap of £130m if the city does not give value Premier Oil or a major will. I recall this happened at Nautical Petroleum with Cairn Energy.
Watch out short term Budget 18th with tax benefits regarding North Sea and longer term 16,000 net Stella will be online come mid 2016 !
Moody in Canada slightly reduced bond rating B2 to B3 which in my view is better than expected considering the delayed news, causing the UK share price drop Friday afternoon. However reading the report states "Ithaca should be able to meet peak funding requirements on the Stella development under its $610m reserve based loan facility" More in Sundays article.
Every broker update i have read is positive post Stella nine month delay, so one wonders when the crazies will calm down after 8 trading days and true value will return.
Lastly prepare for an Enquest style bounce soon big players been buying ! Technical side cast iron trading bottom also shows we are nearly there.