Primary Recommendation

EnQuest - A spin-out from Petrofac, this oil firm should do well

April 2010

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.

Oil services group, Petrofac is an old friend to The Momentum Investor and has just announced the de-merger of one of its subsidiaries. Shareholders in Petrofac will receive one new share in the new company, EnQuest, for each existing share held. Clearly, subscribers should already be pleased with Petrofac, which we added to the TMI Trader portfolio at just 748p in last August's issue and ahead of the demerger has risen to 1188p. But the performance of EnQuest, which owns a portfolio of North Sea producing assets and has emerged from Petrofac's smaller energy developments division - a part of the business that takes stakes in a number of oil & gas fields - could be the icing on the cake. Petrofac's well-regarded chief e ...

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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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