Buy signal generated today from technical analysis, e.g. British Bulls. https://www.britishbulls.com/SignalPage.aspx?lang=en&Ticker=EDR.L Our system’s recommendation today is to BUY. The BULLISH ENGULFING pattern finally received a confirmation because the prices crossed above the confirmation level which was at 7.5000, and our valid average buying price stands now at 7.7600. The previous SELL signal was issued on 26/02/2015, 32 days ago, when the stock price was 9.6062. Since then EDR.L has fallen by -19.22%.
RE: My thoughts
Interested to know how you se UJO business model as precarious? I'm in over there and in a few other oilers too. Seems to me that they are a cautious 'start up' company..low cash burn, two more drills due in the next few months, limited holding in wressle agreed but then again limited investment needed being a small company. They have a good cash base for more acquisitions, which they are waiting on the outcome of wressle before committing to. All seems like a reasonable way to proceed to build a good company me. Probably not much scope for immediate trading (if that is what you are looking for) based on anticipated newsflow, but not a bad investment medium term IMO.
Welcome aboard. Like you I have UJO and EDR (and EOG and LGO). I just like low cost onshore producers as a medium term play (and UJO as a simple bet on wressle). I view EDR very simply. The current value is underpinned by cash and (especially) Ceres, with the other fields helping. The shale acreage is a bonus and will push the price at some point, just as it did in early 2014 (when I sold at 25p after waiting nearly 3 years!). I came back in at 8.2 and could not believe it given that placings were oversubscribed at 25p and 20p not that long ago. So the way I see it is that those who took part in the placings have sold me their cash at a discount.
put £5k in here and looking to add more over the coming months. Baysil's analysis is spot on - I would also add the lack of debt (£1m debt repaid last year). Could be a long and slow recovery but certainly has multi-bag potential at the current price.
Post 14th Rd New Business Model
Looks like 14th Rd bid will now be post election and after the Infra structure bill. If tory policy prevails E & P will progress and massive new PEDL concessions EDR will gain from guaranteed coalescence for existing PEDL explorers this company will revert to the 2014 Major Players farm out days and deliver exceptional returns. This company Mkt Cap £18m Net Assets at Cost £36m no cash issues undervalued. GN excluding 29 Tcf of shale. Unloved. 'For now we see only a reflection as in a mirror; then we shall see face to face. Now I know in part; then I shall know fully, even as I am fully known. 26p Amen. GL GN HNY
RE: My thoughts
Keep UJO and find some new money for EDR as you'll lose on the spreads.
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