no bull

I have placed the link to this story at the bottom of the page,patience is what is needed here people patience,these moments of weakness are buying opportunity's.I have held ESG for a few years now and I always knew this was NOT going to be a short term stock. People who have held and bought when prices have been low will reap the rewards that are coming our way soon.



Stocks to Watch: Bull & Bear - ESG & LYC

After months of a sliding share price, Eastern Star Gas's shares have jumped this week, up a hefty 13.3% since Monday after Friday's solid gain. With a depressed share price, perhaps there's something in the air in respect to a possible takeover by Santos.

According to the ESG website, ESG "was formed in August 2000 to explore, develop and produce both conventional natural gas and coal seam gas in eastern Australia". When it listed in February 2001, ESG had interests in six exploration licences in Victoria and NSW and was focused on brown-coal gas plays in Victoria�s eastern Otway Basins. The company went on to shift its focus to exploration and development in NSW, acquiring numerous exploration licenses.

In July 2009, Santos (STO) acquired Gastar Exploration�s 35% interest in its Narrabri CSG project and the Wilga Park Power Station, as well as buying Hillgrove�s 19.99% interest in ESG. Total upfront consideration for the transaction was $476 million, but it's the 20% interest in ESG that makes STO a potential buyer.

Paterson's have a buy on the stock with a 1.02 valuation, noting that it is a potential takeover target for Santos. You can see a previous broker report from Paterson's by clicking here.

Roger Leaning, Head of Research with RBS Morgans also has a buy on ESG. "Ideally placed to feed gas into NSW and LNG export markets, Eastern announced plans to evaluate the feasibility of LNG exports from the Port of Newcastle," says Leaning. Leaning sees Eastern�s uncontracted gas resource as a logical bolt-on acquisition for numerous companies looking for more gas, the most obvious being major shareholder, Santos. The stock is trading on a 50 per cent discount to Leaning�s $1.24 price target.

Many other analysts are also very bullish on ESG's prospects. Based on Thomson Reuters data, 89% of analysts have a buy on MBN, 11% have a hold, 0% have a sell.


http://www.thebull.com.au/articles/a/20937-stocks-to-watch:-bull-&-bear---esg-&-lyc.html