STRONG BUY NOW!!! READ ON...24 Apr 2010 10:09
Niche Group surges as Irish entrepreneur climbs aboard.Could canny investors have spotted a new Circle Oil? Shares in Niche Group, an Aim-listed investment shell company, leapt a stonking 145.8% — or 0.8p — to 1.5p today on speculation that it could ape the success of the North Africa-focused oil explorer.
The reason for the comparison was the involvement of Irish entrepreneur John McKeon, who today joined Niche as a consultant to help the group “identify investment opportunities”.
McKeon, a prolific deal-doer with a bulging contacts book of energy industry bigwigs, last month bought a 26.7% stake in the minnow with a group of associates.
He was a founding shareholder of Circle Oil, whose strategy of working closely with governments in North Africa and the Middle East to develop small oilfields overlooked by the oil giants has seen the value of the company surge to £158 million.
McKeon left Circle, flat at 37½p, two years ago. Over 10 million shares in Niche changed hands by midday; only seven FTSE 100 stocks were more heavily traded.
Niche's other claim to fame is chairman Christopher Stainforth, who left his role as chief executive of boutique investment bank Durlacher in 2004 after a boardroom row over bonuses.