Friday tips round-up: Tullow Oil, Keller, Augean
Tullow Oil suffered their biggest one-day fall for seven years yesterday after the explorer released a downbeat assessment of prospects at a project in Uganda.
In September, the firm said that recent discoveries in Ghana and Uganda could double Tullow's reserves in the next few years. Maybe a doubling of Tullow's reserves might now be a stretch, but the "problems" at Mputa do not really undermine the case that the company's shares are a good long-term bet. Buy says the Telegraph.
Ground engineer Keller, whose projects include laying the foundations for the 610-metre high Chicago Spire and island-building in Dubai, yesterday posted an upbeat trading statement. On current valuations - the shares are trading at around 6.3 times estimated earnings for 2008 - this looks like a buying opportunity. Moreover, the group has a strong balance sheet that should support it through any downturn. Buy says the Telegraph.
(Article continues below)Advertisement
News that waste group Augean had bought Hitech Equipment was well received. This new business has a hazardous waste treatment and recycling facility in Paisley, Glasgow, and another industrial services operation in Ellesmere Port, north-west England. Augean has disappointed with a string of profit warnings as the hazardous waste business hasn't been as lucrative as it had hoped. However, a recent boardroom reshuffle and new opportunities may help the group begin a turnaround. It is still unclear what One Fifty One, acquisitive Irish conglomerate, plans to do with a 27% stake in the company. For the brave, it's a hold says the Telegraph.
Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.
