Share talk- best stocks for 20221 Jan 2022 07:46
United Oil and Gas (UOG): 2.8p Target 5p
One of the more British aspects of the London stock market is that there would appear to be something of a block against small cap companies becoming large caps. It is a transformation which for some reason is difficult to make even at the best of times. Breaking the £20m market cap is the first hurdle, with the £100m level the zone to break to get to the promised land out of the retail investor space to where institutional buyers start hunting. As far as United Oil and Gas is concerned, the day of writing sees the stock back above its IPO level of 2.5p in 2017 with a 25% rise. Hopefully, the last of the weak longs are finally out, as news of a successful result at the Al Jahraa-13 well strikes a positive chord. However, with the company delivering revenue of approximately half its market cap every six months in the recent past, CEO Brian Larkin and the team have not exactly been treated like royalty. It is hard to think of another oil and gas play that has not had the benefit of the rise in oil prices over the past year and a half, and at the same time been given none of the benefit of the doubt as far as the execution of strategy, and the potential the company has has. It seems fair to say that if we have seen the last of the sellers near 2p, then this company has the perfect mix of blue sky in terms of Jamaica and production in Egypt, with the rest of the portfolio set to deliver as well with the stock squeezing higher.
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