Ready, AIM, fire! It’s M&A time for oil & resource stocks
Tuesday, September 03, 2013 - 02:43
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 amounts leading to some companies. -- and in a position with very very weak share prices limited capital. Looking like a -- to takeover targets. With the prices heading even higher. John sent launch oil and gas companies or perhaps even more fire power to slow up there week accounted putts. There is investing in analyzing the space apples and noticed this trend. Until Austin Moscow's chief executives -- investment matches he manages the junior -- trust's portfolio says the sector is right the consolidation. This includes one of those stalks his trust holds Farrah petroleum. We think about that process -- extremely undervalued. And will benefit from today by -- implication of these or they see through valuation of these -- election. And so further highlights the company not only as they -- rating within the buckles does it take overcome to date. And what we've seen throughout the last as the forty years is that these smaller companies and phone -- they discover oil. But them -- on the size necessary to develop the reserves. And then when you get some but you know having got rid of all this peripheral assets into small company -- -- -- discovered -- Among these big companies come along and go -- up. These smaller companies. Interestingly signs of this trend else -- in the junior resource base -- chief executive of central Asian net tools and -- it -- caught equities at. 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. 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 -- too much dilution for existing shareholders so companies -- court they can't raise the debt McConnell raising equity. As a results 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 stopped. -- along what is.
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