As you all know Encore oil were favoured and called by the blog many moons ago (along with Npe/Gkp[/Premier etc.) and it has been a terrific success by any business standard. We’ve witnessed the stock value treble hitting 150p+ on several occasions.
Encore oil are hugely undervalue and in my opinion should have traded up to 200p.
The problem at the moment is the fear that there’s going to be another huge dip into recession which will hit AIM stocks hard. There’s no doubt that the Catcher North drill has been significantly de-risked and if successful will add more value to Encores’ stock and as Encore prove up more of their asset base the on/off Takeover talks that have been widely whispered here in the city of London should flesh out the SP. Premier are beginning to be touted as the lead movers from our sources, But as ever it’s only speculation! Remember Premier will try to steal the company for buttons. You all know the story here so there’s no point reiterating it. But what I can add to the debate is this; Encore oil have admitted that they expect to be Taken over. Market analysts are saying that Booth wants 300p minimum as Encore now stand, that’s pre-Catcher North results etc This means that Booths’ strategy pre-takeover has to be to prove up the asset base in excess of 300p thus strengthening Encores hand for the deal. I can’t see it happening as some think Booth has over-played his hand. Now here’s the crux of the matter Catcher north may very well prove to be the catalyst or “Tipping point” that assures a Takeover! But the Global meltdown may significantly devalue Encore. That means that post a successful Catcher North drill Takeover is inevitable here. When it happens it will progress very quickly. There is a distinct possibility that a Takeover could be announced post a succesful Catcher North/Burgman drill. It’s a theory that is and will gain more ground as this drill progress’s
Remember that valuations are effected by Global fears. Take the money and run.