CommSec's Four Oils: Upgrading our oil prices BPT2: Last Traded: $1.345 Market Cap: $1.198b Sector: Capital goods INP2: Last Traded: $1.07 Market Cap: $201m Sector: Comm. services PSA: Last Traded: $0.905 Market Cap: $139m Sector: Capital goods 15/05/08 ROC: Last Traded: $2.40 Market Cap: $717m Sector: Capital goods BPT2: BUY / OUT PERFORM Valuation: $1.78 INP2: BUY / OUT PERFORM Valuation: $2.42 PSA: BUY / OUT PERFORM Valuation: $2.57 ROC: REDUCE / UNDER PERFORM Valuation: $1.76 14/05/08 What’s new? CommSec has upgraded its oil prices. The basic changes are:
* the near-term projections have been raised as the oil prices have been higher than expected * the L-R price has been raised from $55/bbl to $65/bbl * the L-R A$/US$ rate has been raised from 77c to 80c
Valuations revised, recommendations same
Higher oil prices have increased the valuation of all of CommSec’s oil stocks (outlined above). Despite the revised oil prices, the relationship between the present share prices and valuation, and hence the recommendations remain the same.
* Innamincka Petroleum (INP) remains our number one pick due to the very large discount to CommSec’s valuation, coupled with CommSec’s confidence in the upside of INP. * Beach Petroleum (BPT) remains CommSec’s preferred pick for investors who are not prepared to invest in stocks as small as INP, or those with a lower risk appetite. *Petsec Energy (PSA) is CommSec’s number three choice as we cannot be as certain of the US potential.
CommSec’s upside valuations of ROC are now above the ROC share price.
INP Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
