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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil

May 2011

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:
  • 567p
Shares in Dragon Oil, a main write-up in TMI at 466p in March 2010 and again at 530p in February 2011, spent much of last year treading water but after very positive results they registered an all-time high of 609p on 4 April. Such improved sentiment may also reflect a note from broker, Nomura, which comments that based on its enterprise value / proven & probable reserves it stands at a whopping 85% discount to its peers and the broker has therefore slapped a target price of 755p and “blue sky” valuation of 930p. Dragon's main asset is a licence to produce oil & gas through its two fields, LAM and Zhdanov in the Cheleken Contract Area, a 950 km block situated up to 40 km offshore on the Eastern side of Turkmeni ...

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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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