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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Dragon Oil - Net cash 38% of market cap.

November 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:
  • 477p
Dragon’s interims were well flagged by its pre-close update but were excellent nevertheless. Revenues rose 91% to US$527m while pretax profit increased 125% to US$309m. Eps rose 125% to almost 60 cents, while net cash increased 27% to US$1,470m (£936m). Growth came thanks to a 25% increase in average gross production to 58,000 bopd as a result of completing eight new development wells, while average prices realised were US$100 / barrel up from US$75. The outlook for this year is strong with management setting a year-on-year production growth target of 20% and five development wells are also planned. Management continue to look for potential strategic acquisitions in Africa, Middle East and Asia while discussions with Tur ...

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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.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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