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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil - Shares hit new high of 645p

April 2012

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:
  • DGO
  • Price:
  • 617p
 lively month for Dragon, including strong results and news that it was mulling a take-over of smaller rival Bowleven, 95.5p, whose portfolio of exploration acreage includes some exciting discoveries in Cameroon. Given that the outlay, including bringing them to production, would have exhausted a significant bite of its cash pile it was no surprise that it pulled out. The m&a activity overshadowed excellent finals from Dragon, with revenue rising 47% to US$1.15bn and pretax profit jumping 68% to US$648m. Eps increased 68% to 126 cents while the cash pile rose 31% to US$1.53bn. Dragon drilled 13 wells in 2011, achieving a 30% increase in average gross daily production to 61,500 barrels oil per day (bopd). Even bette ...

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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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