Stock Watch 18 Jan 2010

The Share Centre’s top 5 customer buys from the last 7 days:

1. Lloyds Banking Group – Recent rally in sector continues on future hopes that the worst may be over.
2. Barclays – Another to benefit from renewed interest in sector.
3. Desire Petroleum – News that a drilling rig is on its way to the Falklands has reignited interest
4. RBS – A New Year tip in a couple of papers has attracted contrarian investors.
5. Matra Petroleum – Speculative interest from penny share punters.
The Share Centre’s top 5 shares to follow:

1. Reckitt Benckiser Lower Risk – With its wide range of household products this is a good defensive buy.
2. Tesco Lower Risk Solid post Xmas trading update highlighted strength of company
3. Compass Medium Risk – The group continue to benefit from the successful management strategy.
4. Croda International Medium Risk – Specialist chemicals producer with attractive overseas earnings.
5. Hutchison China Medical Higher Risk – High risk play in the pharmaceutical market.

Ratio of buys to sells = 63:37
Top 5 most searched for companies on www.share.com


1. Opec Security
2. DSG International
3. Barclays
4. Legal & General
5. Debenhams


The Share Centre’s Share of the Week 18.01.10
Company: Afren    Share price:    Sector: Oil & Gas Producers
Recommendation:    Buy
Risk category:    High
Investment class:    Growth
Opinion:

Oil from West Africa is an important area for the US in its quest to reduce dependence on the Middle East.

Afren is an oil exploration company with major rights in Africa, particularly in the Ivory Coast, Nigeria and Ghana. News that Tullow Oil had made a major discovery not far from its own holdings bodes well as Afren are about to undertake a major drilling programme in the region themselves.

Afren are also looking to actively pick up acreage that is deemed too small for other operators to develop. Targets will be fields that will or could yield between 50 and 100 million barrels. This was a strategy that Cairn Energy started many years ago and has served the company very well.

Recently there has been speculation that a Chinese state owned oil company was in talks to buy some large stakes in some Nigerian blocks. The group moved to a full listing in December.

Further appraisals at its Ebok field have been conducted and this has led to an increase in the reserve estimates previously set; this field has now surpassed all expectations. Further drilling programmes are also expected elsewhere in Nigeria on-shore and off-shore. The track record is good at the moment and is one that investors should look to take a gamble on.


This data is provided by Nick Raynor, investment adviser at The Share Centre. This is not intended to constitute an offer or agreement to buy or sell investments.

 
 

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2010-01-19 10:26:31 © Moneyextra.com