Broker Watch featuring Range Resources, TEG Group, Driver Group, BP and Velosi

Tuesday, Jun 22 2010 by
1
Broker Watch featuring Range Resources TEG Group Driver Group BP and Velosi

Old Park Lane Capital this morning maintained a “buy” rating at Range Resources (LON:RRL), which recently acquired an interest in a second Texas oil field. The broker said it expects that news flow regarding all Range’s US assets would provide strong support to the shares over the next few weeks. “However, with high impact exploration drilling set to commence in Puntland in Q4, we believe that Range has the potential to provide investors with significant upside over the longer term,” it added.

Elsewhere, Astaire Securities noted news from cleantech firm Teg Group(the)plc (LON:TEG), which has picked up a contract with Fife Council to process food and garden waste at its Perth facility. Astaire said the contract, the second this week, was the latest in a portfolio that will generate steady predictable revenue streams alongside the more lumpy contracts to build and supply plant for composting facilities. Turning its attention to telecoms group Daisy Group (LON:DAY), which has acquired MurphX Innovative Solutions, Astaire said the group’s relentless buy and build strategy had so far avoided the numerous pitfalls of an aggressive consolidation model but risks still persist.

Driver Group (LON:DRV) reported interim results in line with the expectations of WH Ireland, earning a maintained “buy” recommendation despite forecasts that Driver will make a loss this year. The broker said it was sticking with its FY11 forecast of £1.6m given the growth opportunities coming through combined with the full year benefit of £1m cost reduction actions taken this year. Moving on, WH Ireland said that yesterday’s AGM at butchers group Crawshaw Group (LON:CRAW) was encouraging, with news that current trading is ahead of budget and new store openings are on track. It maintained a “market perform” rating on the business, which it described as “fundamentally sound with good growth prospects going forward”.

After last week’s upgrade from “hold” to “buy” at BP (LON:BP.) Westhouse Securities responded to yesterday’s news that Anadarko Petroleum (NYSE:ACP) had opened the door to using binding arbitration as a potential course of action to resolve its dispute with BP over the clean-up of the oil spill in the Gulf of Mexico. Westhouse suggested that arbitration would most likely be a much faster process than litigation, and a speedier way of removing some uncertainty associated with the spill. However, it noted that reaching a resolution over responsibility and, ultimately, the financial obligations related to the spill was still likely to take several years.

HB Markets recommended investors “buy” Velosi Ltd (LON:VELO), the quality assurance, testing and engineering group, on the back of a positive AGM statement this morning and shares that still look cheap. While underlying markets remain volatile in line with oil and gas pricing, uncertainty is promoting the need for safety and testing, which is benefiting Velosi. The company has recently signed significant new contracts in the Middle East and Africa and has maintained a strong cash position. Elsewhere, HB urged a “sell” at China Shoto (LON:CHNS) following a profit warning this morning. The broker warned that profit forecasts should slip further as the Yuan is rebased, limiting the competitiveness of Chinese manufactured products.


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Range Resources Limited is an oil & gas exploration company with oil and gas interests in the frontier state of Puntland, Somalia, the Republic of Georgia, Texas, the United States, Trinidad and Colombia. In Trinidad, the Company holds a 100% interest in holding companies with three onshore production licenses and operational drilling subsidiary. In the Republic of Georgia, it holds a 45% farm-in interest in onshore blocks VIa and VIb, covering approximately 7,000 square kilometers. In Puntland, the Company holds a 20% working interest in two licenses encompassing Dharoor and Nugaal valleys. The Company is earning a 65% (option to move to 75%) interest in prospective licenses in the Putumayo Basin in Southern Colombia. more »

Share Price (AIM)
0.895p
Change
-0.0  -1.1%
P/E (fwd)
2.9
Yield (fwd)
n/a
Mkt Cap (£m)
39.8

The TEG Group Plc (TEG) is a United Kingdom-based company. The Company along with its subsidiaries is engaged in the designing and production of Silo-cage composting plants and anaerobic digestion (AD) plants for sale to third party clients, and the design, build and operation of TEG owned waste recycling facilities. The Company operates in two segments: Plant Operations and EPC Contracts. The EPC Contracts segment includes IVC and AD sales to third parties, including the design, production and installation of plants for sale to third party clients. The Plant Operations segment relates to facilities, which are owned and operated by the Company. In April 2014, TEG acquired business and assets relating to a composting operation at Hillbarton, near Exeter. The acquisition was from Glendale Recycling Limited, a subsidiary of Parkwood Holdings PLC. In April 2014, the Company announced that it has completed first project that it invested in, via its Foresight-managed fund. more »

Share Price (AIM)
1.63p
Change
0.0  0.0%
P/E (fwd)
43.0
Yield (fwd)
n/a
Mkt Cap (£m)
3.1

Daisy Group plc, formerly Freedom4 Group plc, is a provider of unified communications to the small and medium enterprise (SME) and mid-market business sector in the UK. The Company and its subsidiaries provides telecommunication services, specifically the provision of integrated voice and data services to the small to medium business market. It provides a combined product set including access, hosting, voice, managed services and mobile telephony to the United Kingdom. On April 15, 2011, the Company acquired the trade and assets of Telinet Limited. On December 9, 2011, it acquired the remaining 50% in Daisy Networks Limited. On January 4, 2012, the Company acquired O2 mobile business from Outsourcery Mobile Limited. On April 16, 2012 it acquired Worldwide Group Holdings Limited. In May 2013, it acquired Daisy Data Centre Solutions Limited. Effective June 28, 2013, Daisy Group PLC acquired MoCo Communications Ltd. In October 2013, the Company acquired Indecs Computer Services Limited. more »

Share Price (AIM)
183.5p
Change
0.0  0.0%
P/E (fwd)
12.6
Yield (fwd)
3.1
Mkt Cap (£m)
489.9



  Is Range Resources fundamentally strong or weak? Find out More »


1 Comment on this News show/hide all

investorschampion 22nd Jun '10 1 of 1

Signs of a slowdown in China and increased competition overseas – the valuation looks cheap and seemingly for good reason!

China Shoto surely now risks being viewed as an old style polluter, having to spend increasing amounts on environmental compliance, operating in what could unfortunately turn out to become a low growth market. The strengthening currency could also make life increasingly hard in overseas markets – hardly the high growth offering investors seek from emerging markets.

www.investorschampion.com

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