Oil explorers - Dream Portfolio list
But for the dilution/capital raising risk, the current share price is a nonsense in our opinion. Success during the balance of the year in their drilling programme will likely propel the stock back over 100p and provide a solid platform for farm-in negotiations by management from a position of strength. Alternately, at the current price, we feel the shares are excessively oversold and that the downside is almost non-existent now.
The chart below shows just how far we have fallen with the stock now down nearly 90% from the highs of last year. We made Bowleven a Conviction Buy at 59p on the 6th of June.
July 2012 | www.financial-spread-betting.com | 53