roc a buy baby

Outlook
The acquisition of Anzon and further development of Zhao Dong has significantly boosted near term production for Roc Oil. In addition, expansion plans for the BMG field in 2010 should provide medium term growth for the company, as outlined below:



Prior to the Anzon transaction Roc Oil had a declining production profile.

The following chart outlines Roc Oil’s proposed drilling schedule for 2009. In the near term the focus is on development rather than exploration activities.



Historically, Roc Oil has tended to participate in high risk-high return opportunities. However, a mixture of disappointing exploration results, acquisition of lower risk assets and changing management appears to be resulting in a repositioning of the company.

Roc Oil appears inexpensive based on medium term consensus earnings forecasts. However, in the near term there is likely to be limited news flow from exploration activities and Roc Oil’s share price is likely to be captive to movements in the oil price – which has been impacted by soft demand.


Crude Oil Analysis
Crude Oil has been under continuous selling pressure for the past 7 months and this is the first buy signal I have had for it since it topped back in July 2008. The weekly chart is very close to a buy signal. If you look at the weekly chart of USO crude oil fund you will see that volume has shot through the roof which generally indicates a turning point. Also the MACD indicator is about to cross which will put this fund on a buy signal if things go well all of next week. The support trend line is trending up slightly and the down trend line is holding the price inside a small triangle. If the price breaks out and all my indicators are putting the odds in favor of a long trade, then we will be looking for a buy point on the weekly chart in the next few weeks. The weekly trading signals are good for intermediate and long term traders.