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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Falkland Island Holdings - Useful exposure to oil exploration while asset backing protects downside

April 2008

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • FKL
  • Price:
  • 370p
With shares in Falklands oil explorer Desire Petroleum, 70p, recently doubling after natural resources giant BHP Billiton, 1526p, agreed to invest in three of its exploration prospects, investors are once again returning to an oil sub-sector that has seen its fair share of excitement. Old-timers will never forget Desire’s explosive debut back in April 1998 when the shares quickly tripled from 140p to 438p on hopes, eventually dashed, that it would rapidly discover a one bn. barrel prospect. The major problem with such investments is that there’s nothing to fall back on if the dreams turn to dust. However, one share that provides a healthy balance of solid profits with exploration upside is Falkland Island Holdings (FT sector: ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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