biggib's Ratings

BUY NEW by biggib on 04 Sep 2014 14:00

Price at rating: 0.53, now:

done deal NEWS IN KUWAIT.r Dr. Muaaz KH M Alfahaid ('Dr Alfahaid'), a Kuwaiti national representing Al Maram Trading & Contracting LTD, will be acquiring a 20% ownership stake in Niel for a consideration of US$20 million, and in turn Niel will be using this consideration to complete the Subscription with New World. r r Kuwait has announced a programme to increase current production from 2.8 million barrels of oil ('MMbo') per day to 3.5 MMbo per day by the end of 2015. Al-Maram will participate in all future bid rounds for the drilling and production of oil and gas in Kuwait after winning an initial bid for the country's 25-year model for what has been nicknamed Project Kuwait. r r "Kuwait has sent out to qualified international oil companies as approved by the Supreme Petroleum Council (SPC) the initial process protocol (IPP) document, which details the process forward." r Although it didn't reveal the names of those qualified companies, the word is out. The companies are BP, Al Maram Trading & Contracting LTD , Conoco, ENI, ExxonMobil, Shell, Texaco and TotalFinaElf. Kuwait has big fields, and it wants big operators to run them. r Some of those companies already work in Kuwait under technical service agreements designed to increase field production, and Kuwait has credited those agreements with major improvements in its production capacity. r r Qualification doesn't completely lock out other companies. Kuwait chose nine other companies that could participate in the activities but only as nonoperating participants. Those companies weren't named either, but observers believe Phillips Petroleum Co. and Repsol YPF are on that list. Under those rules, BP might become operator of a field with Al Maram Trading & Contracting LTD and Phillips as participants. r Once the IPPs went out to qualified companies, the nation planned to open an elaborate version of a data room.r r That room would present the available information about the northern fields that will be offered to foreign investors, and it will include the country's 25-year model for what has been nicknamed Project Kuwait. r After examining the data and the plan, oil companies will reply to Kuwait's request for proposals with their plans, and the SPC will pick the best offers. r Fields r The northern fields available for participation reportedly will be Raudhatain, Sabriyah, Abdali, Bahra and Ratqa. Bahra may not appear in the final package. r Raudhatain holds 6 billion bbl in proven reserves, and Sabriyah holds another 3.8 billion bbl. Both fields have been producing medium- to light-grade crude since the 1950s r r Production from Ratqa was a major reason, if not the prime reason, for Iraq's 1990 invasion of Kuwait. That field is a southern extension of Iraq's supergiant Rumaila field, and Iraq accused Kuwait of stealing billions of dollars worth of its oil through 11 wells along the border. At the end of the Gulf War, a UN team officially placed all 11 wells under the Kuwaiti flag. r r Security is one of the main reasons experts offered for Kuwait's decision to invite outside oil companies to develop the northern fields. If oil companies from the United States, the United Kingdom, the Netherlands and France are operating the fields, those nations will be more likely to step in to protect their home-based companies than to protect strictly Kuwaiti ownership. Kuwait doesn't want to see another 70,000 troops under the Iraqi flag burning its oil wells. r r Kuwait already has made it clear that it would like to raise production from those fields from 400,000 b/d to 900,000 b/d by 2015. Raudhatain produces about 250,000 b/d, and Sabriyah about 160,000 b/d. r r Chevron said in an official statement, "We are interested in the north area of Kuwait as this satisfies Kuwait goals and targets. Obviously, the Kuwaitis are looking at agreements that will not violate their constitution, and we look forward to participating with them." r r It also reportedly plans to offer its western Minagish and Umm Gudair fields for foreign investment at some later date. That probably will depend on its experience in the north. r r Off limits r Conspicuously absent from the list of oil fields that foreign countries may exploit are the fields in Kuwait's supergiant Burgan complex in southwestern Kuwait. r The Burgan complex, with 70 billion bbl of reserves, usually is ranked the world's second largest oil field, behind Saudi Arabia's Ghawar field. That complex includes Burgan, Magwa and Ahmadi fields. South Magwa alone holds at least 25 billion bbl of oil. r r That complex produces roughly 1.6 million b/d of oil. r Kuwait can produce 2.141 million b/d under Opec quotas, but it already has set plans to increase that production to 3 million b/d by 2015, and the northern fields are part of that production-improvement plan. r r One recent study by the Kuwait Institute for Scientific Research said the country can continue producing oil at a rate of 2 million b/d for the next 132 years, but official sources put the reserve level at 96.5%, or 10.8% of world reserves in an area slightly smaller than the northeastern US state of New Jersey. r Capital plan r r This year, KPC and its subsidiary companies plan to spend US $7.6 billion on upstream and downstream projects. The domestic upstream Kuwait Oil Co. will get $5.85 billion of that budget, or more than 75%, said Oil Minister Sheikh Saud Nasser al-Sabah. r r Among items in that capital budget is the development of the five fields near the border with Iraq, in partnership with foreign oil companies. r r Kuwait also is conducting seismic surveys on Bubiyan, its largest island in the Persian Gulf and adjacent to Iraq. The government said initial analysis looks promising, and it plans exploratory wells to test production potential. r r Until now, the country has experienced bottlenecks in its infrastructure. It had 26 oil-gathering centers before the Gulf War, and all of them were damaged. Repairs to the last of those centers should be completed early this year at the Minagish and Umm Gudair fields in the southwest. r r It also has completed a major renovation and is building new tanker mooring buoys at Mina al-Ahmadi, more oil storage capacity and more pumping stations. r Natural gas r r If all goes well with the northern oil fields, more opportunities may open for international oil companies. For example, Kuwait wants to significantly increase its use of natural gas, particularly for generating electricity. It produced only 330 Bcf in 1998, and most of that gas was produced in association with oil production. r r If it can produce more gas, it would free up more crude oil for export. r It has a memorandum of understanding with Qatar that allows it to import gas from Qatar's North field. ExxonMobil is studying the feasibility of moving some of that gas - the amount hasn't been disclosed - to Kuwait. r r Kuwait also signed an agreement with Iran to import gas through a pipeline, but that agreement hasn't been solidified either. r r In July 2000, Kuwait and Saudi Arabia agreed to share equally any production from the offshore Dorra gas field, but Iran also claimed that field, and it still hasn't agreed to any kind of sharing arrangement. r r Government officials in Kuwait would like to produce more gas internally, by reducing the flaring of associated gas from its oil fields and through new drilling. Some of that exploratory drilling to significantly deeper formations has taken place in Raudhatain field.r r Another reason for inviting outside companies in may lie in the Kuwaiti economy. The nation offers its citizens a good living with a lot of no- and low-cost programs helped by the 80% contribution to government revenues from oil exports. Kuwait also has set aside $50 billion against the time it can no longer count on oil to support the nation. r r The depressed oil prices of 1998 and 1999 served as a wakeup call encouraging the government to begin reducing government subsidies. r r It has started privatizing industries outside the oil segment of the economy to reduce subsidies. Most of that activity has taken place in health care, electricity generation and telecommunications. A healthy citizen involvement in nongovernment businesses would take a lot of pressure off the federal budget.r r The government also wants to protect Kuwaiti jobs and expand horizons for Kuwaiti workers. Some 93% of the citizens work in state-owned organizations or the government. By cutting subsidies and increasing revenues, it should be able to cut its budget deficits.

Score: 100.00

BUY OUT by biggib on 04 Sep 2014 07:27

Price at rating: 16.00, now:

TAKEOVER TALK 35Pr Outsourcery (OUT) Cloud computing aka software as a service "SaaS" is one of the hottest sectors in tech land.r In our article we highlight cloud companies that we felt were logical takeover targets.r Cloud computing aka software as a service “SaaS” is one of the hottest sectors in tech land. In early December, immediately after the SAP AG (NYSE:SAP) takeover bid for SuccessFactors (NYSE:SFSF), The underlying thesis of our article was that with the October 2011 acquisition by Oracle (NYSE:ORCL) of RightNow Technologies followed by the SAP acquisition of SuccessFactors that there would be pressure on all large software/computing companies to take heed and make their move to grab one or more of the existing players in the field or risk being “left at the station”.r Our thesis was immediately confirmed by IBM’s (NYSE:IBM) takeover of one of our favorite targets, DemandTec, and, last week the thesis was reconfirmed by Oracle bidding for another of our highlighted favorites, Taleo. Thus, in two months fully twenty (20%) percent of the takeover targets we highlighted have been taken over.r We feel this latest cloud acquisition by Oracle (being their second in the field in less than six months) will turn up the heat on the other large players in the software/computing field to enter the “land grab” before all the prime real estate is gone. Therefore, we have decided to take yet another look at what we feel are the most logical takeover targets currently available in the cloud. Here are our five candidates:r Ariba, Inc. (NASDAQ:ARBA)r Ariba is a $2.82 billion market cap company based in Sunnyvale, California with an average daily trading volume of 1.1 million shares. Ariba was founded in 1996 to revolutionize collaborative business commerce solutions. Today, the Ariba Commerce Cloud is home to more than 700,000 companies and is the leader in trading network volumes. Ariba is estimated to have earnings per share of $0.95 this year and $1.13 next year. Revenues should come in around $528 million this year and increase to $601 million next year. With its size, history and reputation Ariba would provide any company with an instant and meaningful presence in the cloud.r Kenexa Corporation (KNXA)r Kenexa is a $764 million market cap company based in Wayne, Pennsylvania with an average daily trading volume of 280,000 shares. The company operates in the same SaaS space as SuccessFactors. The company is estimated to earn $1.03 this year and $1.25 next year. Revenue this year should be $357 million and is estimated to increase to $408 million next year. As a pure play with good earnings Kenexa looks like an attractive bolt-on acquisition that could be done without much dilution. With recent cloud acquisitions being valued at 5 to 8 times current year revenues Kenexa not only is “bite sized” but offers the possibility of a significant takeover premium.r NetSuite, Inc. (NYSE:N)r NetSuite is a $3.1 billion market cap company with an average daily trading volume of 401,000 shares. The company was founded in 1999 and is headquartered in San Mateo, California. NetSuite is a leading vendor of cloud computing business management software suites. NetSuite is the prized property in its playing field and would be a great acquisition. Keep in mind, with 2012 EPS estimated at $0.21 per share and revenues of $298 million this would come with some steep dilution. Earnings should increase in 2013 to $0.34 with revenues increasing to $370 million Also remember that the majority of the stock is held by insiders and with Larry Ellison as the largest shareholder it would seem logical that NetSuite is eventually going into the Oracle fold. It would seem to make sense for Oracle to bring this “in-house” sooner rather than later so that Oracle can offer a more complete suite of cloud solutions.r Outsourcery (LSE.OUT)r Is a £5.53 million market company with an average daily trading volume of 40,000 shares.r AIM-listed, cloudy infrastructure biz Outsourcery, is the latest addition to the Cabinet Office SME panel. His organisation will sit alongside the likes of Redfern Travel and Nexor Ltd.r It has an excellent relationship with Microsoft (MSFT:NDQ), as evidenced by its Gold Partner status, and is an expert in the Seattle giant’s full suite of products, ranging from CRM to SharePoint, Exchange and Lync. Microsoft’s huge list of customers represents a great opportunity. ‘There is going to be a massive shift in Microsoft’s installed baser Currently trading at 16.00p per share. In the last year Outsourcery’s share price has ranged from 15.50p to 122.50p and brokers are currently rating this stock as ‘strong buy’.r Based on current cloud M&A valuations this company may also offer investor’s a significant takeover premium.r SPS Commerce, Inc. (NASDAQ:SPSC)r SPS Commerce is a $307 million market cap company with an average daily trading volume of just 65,000 shares. The company was founded in 1987 and is based in Minneapolis, Minnesota. SPS Commerce is another 100% SaaS pure play. The company is profitable with earnings per share estimated at $0.43this year and $0.58 next year and revenue estimated at $70 million this year and $82 million next year. This company should be an easily digestible “bolt on” acquisition for any number of potential acquirers. Based on current cloud M&A valuations this company may also offer investor’s a significant takeover premium.r Ultimate Software Group, Inc. (NASDAQ:ULTI)r Ultimate Software is a $1.73 billion market cap company with an average daily trading volume of 206,000 shares. This company was founded in 1990 and is based in Weston, Florida. Like Taleo, Kenexa and Cornerstone this company competes in the same SaaS HR space as SuccessFactors. Ultimate is estimated to earn $1.01 per share this year on $330 million in revenue and $1.40 per share next year on $401 million in revenue. This is a well-run company that might be a good entry point for HP (NYSE:HPQ) or any other company that wanted to have a significant and immediate cloud presence.r

Score: 0.00

BUY CNE by biggib on 30 Aug 2014 21:58

Price at rating: 179.60, now:

"Morocco remains one of the last under-explored regions of North Africa,” says Oisin Fanning of San Leon Energy (LON:SLE). - CNE, SLE, SQZ [link]

Score: 100.00

BUY SQZ by biggib on 30 Aug 2014 21:58

Price at rating: 14.10, now:

"Morocco remains one of the last under-explored regions of North Africa,” says Oisin Fanning of San Leon Energy (LON:SLE). - CNE, SLE, SQZ [link]

Score: 37.50

BUY SLE by biggib on 30 Aug 2014 21:58

Price at rating: 2.70, now:

"Morocco remains one of the last under-explored regions of North Africa,” says Oisin Fanning of San Leon Energy (LON:SLE). - CNE, SLE, SQZ [link]

Score: 68.75

BUY EVO by biggib on 30 Aug 2014 21:55

Price at rating: 0.44, now:

SMALL CAP MOVERS: Evocutis, a remnant of a medical tech firm, which saw the shares shoot 200 per cent higher. - EVO [link]

Score: 100.00

BUY COP by biggib on 30 Aug 2014 21:53

Price at rating: 24.75, now:

Warm investor reception for Circle Oil after Tunisia pushr [link] Today, 4:21 PMr Circle Oil pleased investors earlier this week when it reported success in exploration off the coast of Tunisia, which helped boost its share price by 25 per cent on the day

Score: 63.75

BUY EMED by biggib on 30 Aug 2014 21:52

Price at rating: 8.18, now:

SMALL CAP MOVERS: In the small cap mining sector there was plenty of attention on Spanish mine developer EMED - [link]

Score: 100.00