The recent move upwards in the Encore oil sp is atypical of whisper, rumour, and good old-fashioned buying, in the belief that they are a solid investment. We’ve seen this sp bounce around many times. I recall writing on them when they were in the 40p’s. They are always going to spike after periods of “genteel decline” no news means that stocks like this drift downwards until the market get the scent of an event. And what greater event than the rumoured TAKEOVER of Encore by Premier as mentioned here some time ago.(see Takeover tipping point article)
Now lets just forget takeover and put it to one side. The reasons to invest here are overwhelming Catcher,catcherNorth,Cladhan,BurgmanVaradero, two new licences in the UKCS 26th Seaward Licensing Round, Completely debt-free,Tudor rose,Merroe,Spainards etc. The point I am making is that Encore Oil are built on a firm foundation and they will always spike up on good or “perceived” good news. It’s a win, win situation for genuine investors the secret here is to hold your stock.
Back to the news. I did write about Premier being the front-runner here vis-a-vis Encore’s assets/takeover and now it would seem that some in the market are agreeing. It’s quite ridiculous really. You’ve got the company Ceo Booth actually telling the AGM that they are in the market for takeover and that EO probably wouldn’t be around for the next AGM. It should be no surprise to Investors when they finally announce a takeover, with Premier who are as stated previously on the Blog the Lead mover for the company! Of course no one knows how long it will take but make no mistake Encore have been talking to suitors other than Premier. The whispers circulating at the moment are that Booth wants 300p per share. Premier see EO at 180p news from the city is that Premier may go to 210/15p but Encore will have to move downwards particularly since the new North sea tax has rather taken some of the shine away. It is rumoured that Booths 300p figure could be lowered by the board. They are going to be swallowed up it’s just a matter of how much and when!