Monday, January 30, 2012

IAE - Ithaca Energy looks interesting

Oil producer IAE.L (Ithaca Energy) is doing the rounds lately, garnering a well-received writeup on TMF's Pauly Pilot's Pub, and yesterday on Stockopedia as a share that might go up 20% in a month. OK, so I'm a bit late to the party.

On 23-Jan-2012 it announced that
it has received a confidential, non-binding
proposal to acquire all of the outstanding shares of the Company
IAE is looking overbought at the moment, having jumped from about 140p to 175p over the last week. A theory is that there should still be enough maneuvering room for a premium price even at these levels.

It has a market cap of£451m, and a nice cash position of £108m. It trades on a PER of 12.6. Analysts are forecasting an EPS of 41.65p, which would put it on a forward ratio of 4.2. Not bad, even if the bid doesn't work out.


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