News for the Snoozers - Part 3

Monday, 12th January 2015 09:23 - by Moosh

Beximco Pharma (TIDM: BXP)

Following its Q3 2014 results, BXP told the market that it has received Good Manufacturing Practices (GMP) approval from Health Canada – the Canadian regulatory authority, which will aid market expansion, and as previously stated this comes hot on the heels of similar GMP approval from the Taiwan Food and Drug Authority.¹ Currently at 18p (mid-price), the company turned over~£89.33m revenue in the full financial year to December 2013, and still remains undervalued based on both earnings and net asset value.^2-3

Caza Oil and Gas (TIDM: CAZA)

CAZA has been continuing to prove up its reserves in its Bone Spring play with recent strong flow rates from Marathon Road and East Marathon Road properties.⁴ CAZA aren’t oblivious to the fact that the oil price has plummeted and remain committed to its current operations schedule, with an upcoming drill plan in Q1 2015 to include drills at Marathon Road, an initial commitment well with the new farm-in partner CWEI, Gramma Ridge, Broadcaster property, and another East Marathon Road well.⁵ We also await the flow rate result from the recent Lennox well which had issues with it at the end of 2014, so there is plenty of news to come from CAZA.⁴ A recent update in reserves (to September 2014) saw a slight increase in total proved reserves, but importantly, these reserves do not take into account the later developments regarding the acquisition of East Marathon Road property and also any potential from the farm-in opportunity with CWEI.^6-8

Empyrean Energy (TIDM: EME)

Prior to the latest $2m repayment of its loan to Macquarie Bank, EME released its interim results and to cut a long story short, the earnings (non-diluted) generated were ~0.81p, suggesting an initial price base for the full year (for PE ratio 10) of 8.1p as fair value.^9-11 With the price currently at 6.375p (mid-price), EME may be considered as undervalued but there is still the overwhelming bearishness of crude oil which is keeping the savvy investors at bay so it would be prudent to hang back with EME since news doesn’t flow frequently - the company has stated many times that updates will be issued on a quarterly basis so this isn’t one for traders, but for investors/invaders. There is also the question of a large number of options due to be exercised by 2 March 2015, which, if exercised, will create further dilution of shares over which the earnings will have to be split. It looks like the directors failed to exercise any options that were due to expire 4 months after the release of the latest final results from 8 September 2014 (suggesting the expiry date for these options to have been 8 January 2015, which has happened already!).¹² I would rather the price remained subdued until after 2 March 2015 since it may force the directors to avoid exercising the 14m options at 8p and buy up already available shares, thus preventing share dilution which would be beneficial to all parties involved in my opinion. On the positive side, the company does have 184 producing wells in production as of 23 December 2014 and the 2015 drill schedule is on for a further 100 wells.¹⁰

Kalimantan Gold (TIDM: KLG)

Following on from the reserves update for their copper project in Indonesia, KLG has announced an agreement to progress these projects with Tigers Realm Copper Pty Ltd so once the administration of this partnership has been fully completed and work gets underway, then there is potential here for consistent news flow to attract traders who are obsessed with news.¹³

Servision (TIDM: SEV)

SEV has received the balancing payment now from Beijing SIVI Technology and the company has provided further details of order schedules.¹⁴

References

1. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=BXP&ArticleCode=k46dzaaa&ArticleHeadline=Receives_GMP_Approval_from_Health_Canada
2. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=BXP&ArticleCode=81dik3qp&ArticleHeadline=Final_Results
3. Conversion rate as of 10/1/15: 1 Taka = £0.0085
4. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CAZA&ArticleCode=ebrigur6&ArticleHeadline=Bone_Spring_Operational_Update
5. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CAZA&ArticleCode=sf22sl05&ArticleHeadline=3rd_Quarter_Results
6. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CAZA&ArticleCode=zc00dld7&ArticleHeadline=Reserves_Update
7. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CAZA&ArticleCode=fpg2419b&ArticleHeadline=Caza_announces_sizeable_farmin_opportunity
8. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=CAZA&ArticleCode=apgf9b1h&ArticleHeadline=Acreage_acquisition_and_operational_update
9. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=EME&ArticleCode=hvf3z0wf&ArticleHeadline=Repays_USD_2m_of_Macquarie_Facility
10. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=EME&ArticleCode=zj3r3rh1&ArticleHeadline=Interim_Results
11. Conversion rate as of 10/1/15: $1 = £0.66
12. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=EME&ArticleCode=pkrjjv91&ArticleHeadline=Final_Results
13. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=KLG&ArticleCode=ekfaf8lt&ArticleHeadline=Issue_of_Equity
14. http://www.lse.co.uk/share-regulatory-news.asp?shareprice=SEV&ArticleCode=gtjp9tdu&ArticleHeadline=Update_on_existing_China_distribution_agreement

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.