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Takeover Targets


RobAde
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Due to the market correcting itself and many bargains out there I was wondering if any of us feel that a particular stock could be a taken over target.

 

This is not a topic to RAMP your stocks but merely reasoning why you think the stock could be takenover.

 

Please note the below stocks are only my thoughts, I am sure their are multiple other companies which are prime candidates to be taken over, please feel free to post which companies you feel will be the ones to `Look Out For'

 

I personally feel 2 stocks could be a takeover target.

 

NWE

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Market Cap $19M

Money In Bank $8M Approx

Puffin Field Worth Appox $4.5 million per year

Jingamia $1M

North Sea Acreagae with potential gas shows

Upcoming drills (Moondah & Red Hill)

Long term US Gas Shales

And a lot more going for it than above

 

With the failed takeover of NXS, I am sure a number of medium sized Oilers would be looking for potential opportunities. NXS would provide a medium sized Oiler a good opportunity to purchase a company that generates income for next to nothing, a company that has experience and gaining more and more experienc of the Indian markets. Perhaps NXS which has cash in the bank could be the one to make the bid for NWE.

 

FAR

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Market Cap $46M

Cash In Bank $13.5M

As Chimera pointed out on the FAR thread the current projects for FAR are valued at approx $25M

Earnings $4M+ PA

WEI Discovery looking like it could be commerical

Awaiting news from Eagle regarding flow rates, commerciabilty etc

Canada production testing in progress

Senegal Potentinal 1 Billion Barrels

Stokes Bay - Drilling August

Gulf Coast - Drilling July

 

Perfect candidate for a medium-large Oiler to takeover, perhaps HDR,AZA, ROC. On paper and hopefuly in reality FAR can demonstrate it has number of projects that are currently being tested for commerciabilty and a respectable amount of acreage for upcoming drills. Will be farming down Senegal and potentially can have this drill virtually free carried.

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CHL is under an offer by CBP. the directors have control of enough stock to block the takeover and have indicated the bid is not adequate.

 

no doubt it will come down to price. so i you are looking for a stock with some underlying support ie 31c (the offer) with the kicker being a fattened bid. rarely is the first bid the last bid.

 

disclosure: i hold CHL

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Tower (TWR) imo is a likely growth appendage for a big insurance company. Insurance market is mature, and that makes growth through a TO more likely, imo.

 

I reckon oil and gas companies are probably targets also, after seeing some of the huge prices paid by China and South Korea for international leases. Alot of junior oil companies here with prospective leases that would be cheap in comparison. NXS, DLS as examples of companies with large majority owned leases in Australia.

 

OSH must be an enticing gas target also.

 

 

 

 

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QUOTE (RobAde @ Thursday 15/06/06 01:13am)

Rob, I get slightly different figures than you...hows' this look?

 

FAR

 

Market cap at today's open = $58million including options etc

 

Cash in bank = $25.88 million including recent cap raising

 

This means that 44% of FAR's market cap is backed by cash!!

 

China looks like a goer

Canada looks like a goer

 

Senegal - The mulitple 300MMBOE targets should be large enough to get the big boys interested. Remember, Shell originally bid on this block and was beaten out, and SHell hates to lose. Shell is definitely on the prowl for deals ATM, as are many others.

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In reply to: Danville on Wednesday 14/06/06 09:10pm

Danville, the market cap was from last nights price hence the discrepancy, the cash in bank was derived from their last report, I havent counted the money from the cap raising as it is to be spent. Either way it looks like a great target to acquire.

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In reply to: RobAde on Thursday 15/06/06 03:13am

RobAde Have to agree with you on your selection. Have to add PPP long rumoured as a takeover target due to 10% holding in Tui area oilfields. Despite the terrible market slump PPP was the only oil stock to hold steady on good volume, is there a message there?

Australian oil shares have a long history of being undervalued on their oil/gas holdings and then gobbled up by foreign companies. Bridge Oil was one company with USA oil/gas interests badly undervalued on the ASX, think Command or was it Discovery (John Doran) was India and taken out by the poms,Novus taken out by Indonesia, the list goes on and on. Australians sell their oil companies cheap and buy overseas assets at mugs prices. It would be hard to convince me that several companies in the USA are not already keeping an eye on FAR. Another recent takeover in the oil sector that many missed was MAG taken out by USA listed MPET at a bargain basement price.

 

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