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Ready, AIM, fire! It’s M&A time for oil & resource stocks

Tuesday, September 03, 2013 - 02:55

Sept. 3 - Is an M&A wave about to hit the AIM-listed oil and resource space? Ernst & Young and some market players certainly think so. We list their top picks.

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With six expiration Goldman petroleum you -- oil and -- the tournament it's a Celtic international. These funny -- to oil and gas companies. Picked to be taking shape at this prediction made by global accountancy and consultancy found and being young and based on need -- -- highlights his. By pulling gaffe I index. The range is massive just in the last three months the best performing stock rose by seventy cents on the same time the worst performing stock fell by 78%. Most of -- three quarts of its founding in just three months. And thus leading to some companies. Been in a position with very very weak chip prices limited capital. Looking like a truck to takeover targets. With oil prices heading even higher. John sent launch oil and gas companies have even more fire power to slow up there week accounted pots. There is investing in analyzing the space apples and noticed this trend. Until Austin Moscow's chief executives at investment -- -- inches he manages the junior -- trust's portfolio says the sector is ripe for consolidation. They think he's one of those stalks his trust holds -- petroleum. We think about that process -- extremely undervalued. And will benefit from day by you implication of these or they see through valuation of these election. And so further highlights the company not only as they -- rating which in the buckles does it take over accommodate. And what we've seen throughout the last as the forty years is that these smaller companies and phone -- they discover oil. But them off on the size necessary to develop the reserves. And then when you get some but -- having got rid of all this peripheral assets into small companies these two -- discovered on. Among these big companies come along gobble up. These smaller companies. Interestingly signs of this trend else managing in the junior resource base -- chief executive of central Asian net tools and interested public -- that. Since many small cap mining companies are stuck between a rock and a hard place. The lack of funds coming into the junior results sect that. Has resulted in many projects many companies having good projects but I do not have the ability to raise the money to take those projects forward. Debt is very difficult. Even if you can get debt. How do you raise the equity low stock prices means too much dilution for existing shareholders so companies -- court they can't raise the debt McConnell raising equity. And as a result a waiver and the name maybe not to sweep the junior oil and mining space. At companies with the cash snapped up days blocked past stall. And getting along -- it is.

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Ready, AIM, fire! It’s M&A time for oil & resource stocks

Tuesday, September 03, 2013 - 02:55