Interesting24 Nov 2015 08:59
Nov 23, 2015 at 05:00
Majedie ups stake in beaten-up Rockhopper
Majedie’s star team of AAA-rated UK equity managers has upped its conviction in oil minnow Rockhopper Exploration (RKH) following 12 months in which its share price has more than halved.
The managers increased their investment to more than 5% of the business worth £5.2 million at a share price of 35p, down from 80p this time last year.
The shares are held in the Majedie UK Equity and the Majedie UK Smaller Companies funds, run by James de Uphaugh, Richard Staveley, Matthew Smith and Christopher Field, all AAA-rated.
Explorers have had a hard time catching a break in the last 15 months as the oil price has collapsed, with sentiment crashing again since the summer as China’s commodity-intensive economy misfired.
Rockhopper is among the sector’s better-tipped stocks however, due to some promising Falklands and Mediterranean assets and a well-managed balance sheet.
The 12 analysts covering the stock tracked by Reuters recommend a median price target of 91.2p.