Tuesday, February 15, 2011
Angel Mining sold today after 2 day rise
I took the decision today to sell Greenland gold producer, Angel Mining (ANGM), given I was expecting some confirmation of the first shipment of gold dore by now from the Nanulaq mine. The price has risen over the last 2 sessions on rumours that news is imminent but I was spooked by the fact that it could be smokescreen for a delay so I have sold. I am reluctant to invest in companies that do not keep their shareholders fully informed of events and are constantly issuing new shares to maintain operations. It may be the Angel will issue an RNS tomorrow or by the end of the week but so be it. Its a great long term play with a good story both from its gold mine but also its Black Angel zinc prospect, but I'll stay on the sidelines for a little time and see what happens.
Oil barrel article on Xcite energy helps to unsettle nerves
This mornings article from oilbarrel.com seems to have helped in unsettling the fragile nerves of Xcite Energy investors. The shares are down 7.5p at 362p.
Although the article reassures about the p50 of 200 million barrels from the Bentley heavy oil field with as much as 100% upside, Ambrian analysts have raised concerns, notably on funding for the field development.
Xcite are currently waiting on the revised CPR (competent Persons Report), written by an independent third party to move contingent resources to reserves enabling the first stage production plan. The original CPR had reserves of 166 million barrels but the 9/3b-6,6z well had a flow rate of 2900 barrels per day versus a maximum expectation of 2800 bpd. In addition, at the Oilbarrel.com presentation in January 2011, Xcite described the appraisal well as "shows mobility and reservoir properties are at or above the high end expectation for this part of the reservoir". High end flow and reservoir properties would seem to give confidence that when the CPR comes, there is a strong possibility that there will be a good reserves upgrade.By how much is the big question?
On the funding front, the Bentley Alliance structure whilst not fully transparent gives potential funding for the field infrastructure.without the need for a major farm in (see more details of Alliance in the previous post http://contrarianinvestoruk.blogspot.com/2011/01/xcite-energy-should-prove-highly.html). Infrastructure costs will be contained because refining and transport will be handled by BP which are part of the Alliance. The cost of the rig from British American Offshore (Rowan Norway) will most likely be handled by the SEDA agreement where the company is given cash in return for nil-discount shares (which cannot be sold for 4 months). There is also the possibility of debt versus a dilutive fund raising via a placing.
Although the Oilbarrel article mentions a supposed limited interest in heavy oil fields like this from other companies (according to Ambrian), but Statoil with a heavy oil field right next door springs to mind as a often mentioned suitor. Maybe there isn't takeover interest right now, but they don't even have a CPR or confirmed final reserves for Bentley to undertake due diligence, but they will have very soon. Either way, Xcite is committed to bringing Bentley to full production during 2011.
Sure the share price has gone up many times over in the last 18 months but investors should not forget that before the flow test in December 2010 know one knew if Bentley oil would flow at a commercial rate. Conoco failed in the 1980's to achieve a commerial flow. Xcite have managed to get the heavy oil to flow with modern techniques with the help of Schlumberger. The share price was over 3 pounds with this huge questionmark hanging over the field last December, now it is 362p, with the risk largely gone. It could have gone to more or less zero if the flow test was very poor! There's no good having out if you can't extract it.
We'll find out soon enough about the CPR and funding for the project, and though Xcite is not a bargain, it is certainly not overvalued with such a strong asset in the North Sea. I derisked a bit yesterday and moved some funds into Bowleven and Weatherly which I do consider bargain basement based on assets. However, there's still a lot of Xcite shares in the kitty.
The oilbarrel article is below for reference:
http://www.oilbarrel.com/nc/news/display_news/article/xcite-energy-inks-rig-contract-to-put-it-on-track-for-bentley-development-drilling-in-q4/771.html
Xcite Energy Inks Rig Contract To Put It On Track For Bentley Development Drilling In Q4
After a few months of negotiations, Xcite Energy has finally inked the paperwork to hire the Rowan Norway harsh-environment deepwater jack-up. The newbuild, still under construction in the Keppel FELS yard in Singapore, will undertake development drilling under the first stage production plans for the Bentley heavy oilfield in the North Sea from Q4 2011. The news follows a £5 million draw on the company’s standby equity distribution agreement earlier this month.
This ensures Xcite, which is listed on AIM and TSX, now has the drilling hardware to push ahead with development of this heavy oilfield, which has so far exceeded the expectations of the management team. A key well drilled late last year, the much watched 6z horizontal well, which saw investors pile into the stock, driving the share price up 550 per cent from 65 pence in August to 425 pence per share as test results were announced in December, proved the reservoir had high porosity, high permeability and high productivity. The well flowed at 2,900 bpd with the rate constrained by the limits of the testing equipment.
Provisionally, the company reckons there are 750 million barrels of oil in place, with a low case of 120 million and a high case of 250 million with a P50 of 200 million barrels. That’s without any enhanced oil recovery, which could increase that number by 50 to 100 per cent. Xcite has 100 per cent. An updated CPR is due out shortly, which should lay the foundation for development of an asset that has been a seven-year labour of love for the management team and could make Xcite, which listed on AIM in November 2007, one of the largest oil companies on the exchange.
Yet news that the key drilling contract is now in place received a rather muted response on Monday, with the shares dropping 14.5 pence to 368 pence. Analysts at Ambrian Oil & Gas believe this is because so many question marks still remain about how this capital intensive project will be funded by the dual-listed company.
“The capex associated with a full-field development of a crude with characteristics such as those at Bentley (high viscosity of up to 1000Cp and gravity of 10-12° API) will run into the billions and, for a small company, we suggest the task of taking on such a large-scale development is simply unrealistic,” said the Ambrian analysts in a note. “Accepting Xcite will not (or cannot) take Bentley on alone leads you down a path that ends with the conclusion that a significant farm-down will be necessary in order to bring in a larger operating partner, with much deeper pockets and a proven heavy oil operating track record. No noises with respect to a potential farm-out have yet been made, and with the industry not appearing to be lining up to get access to Bentley, this is concerning in our opinion.”
Some investors are also concerned about the lack of clarity about the terms agreed with the Bentley Alliance, which includes AMEC and BP. The Alliance is a group of contractors who have agreed to work on a risk and reward basis, a formula which enables Xcite to capture industry-leading expertise and secure the best people by providing enhanced returns for performance. This may be a win-win for the operator-contractor relationship and ensure a Rolls Royce engineering job, but investors are left rather in the dark as to just how much is on the table for the contractors and how much will be retained by Xcite.
Shares in the company rose 800 per cent in 2009 and 700 per cent in 2010, making it one of the favourites among oily investors. While there has been some easing back of the share price to below the £4 a share marker, inevitably some profit taking following the stellar gains of the past year, the stock is likely to remain a favourite pick of many investors given management’s track record of delivery and the upside in the Bentley reservoir, which many believe will be at the top end of expectations given the success of that 6z well. Some clarity on the future financing of the development would, however, be much welcomed by investors in the relatively near-term.
Although the article reassures about the p50 of 200 million barrels from the Bentley heavy oil field with as much as 100% upside, Ambrian analysts have raised concerns, notably on funding for the field development.
Xcite are currently waiting on the revised CPR (competent Persons Report), written by an independent third party to move contingent resources to reserves enabling the first stage production plan. The original CPR had reserves of 166 million barrels but the 9/3b-6,6z well had a flow rate of 2900 barrels per day versus a maximum expectation of 2800 bpd. In addition, at the Oilbarrel.com presentation in January 2011, Xcite described the appraisal well as "shows mobility and reservoir properties are at or above the high end expectation for this part of the reservoir". High end flow and reservoir properties would seem to give confidence that when the CPR comes, there is a strong possibility that there will be a good reserves upgrade.By how much is the big question?
On the funding front, the Bentley Alliance structure whilst not fully transparent gives potential funding for the field infrastructure.without the need for a major farm in (see more details of Alliance in the previous post http://contrarianinvestoruk.blogspot.com/2011/01/xcite-energy-should-prove-highly.html). Infrastructure costs will be contained because refining and transport will be handled by BP which are part of the Alliance. The cost of the rig from British American Offshore (Rowan Norway) will most likely be handled by the SEDA agreement where the company is given cash in return for nil-discount shares (which cannot be sold for 4 months). There is also the possibility of debt versus a dilutive fund raising via a placing.
Although the Oilbarrel article mentions a supposed limited interest in heavy oil fields like this from other companies (according to Ambrian), but Statoil with a heavy oil field right next door springs to mind as a often mentioned suitor. Maybe there isn't takeover interest right now, but they don't even have a CPR or confirmed final reserves for Bentley to undertake due diligence, but they will have very soon. Either way, Xcite is committed to bringing Bentley to full production during 2011.
Sure the share price has gone up many times over in the last 18 months but investors should not forget that before the flow test in December 2010 know one knew if Bentley oil would flow at a commercial rate. Conoco failed in the 1980's to achieve a commerial flow. Xcite have managed to get the heavy oil to flow with modern techniques with the help of Schlumberger. The share price was over 3 pounds with this huge questionmark hanging over the field last December, now it is 362p, with the risk largely gone. It could have gone to more or less zero if the flow test was very poor! There's no good having out if you can't extract it.
We'll find out soon enough about the CPR and funding for the project, and though Xcite is not a bargain, it is certainly not overvalued with such a strong asset in the North Sea. I derisked a bit yesterday and moved some funds into Bowleven and Weatherly which I do consider bargain basement based on assets. However, there's still a lot of Xcite shares in the kitty.
The oilbarrel article is below for reference:
http://www.oilbarrel.com/nc/news/display_news/article/xcite-energy-inks-rig-contract-to-put-it-on-track-for-bentley-development-drilling-in-q4/771.html
Xcite Energy Inks Rig Contract To Put It On Track For Bentley Development Drilling In Q4
After a few months of negotiations, Xcite Energy has finally inked the paperwork to hire the Rowan Norway harsh-environment deepwater jack-up. The newbuild, still under construction in the Keppel FELS yard in Singapore, will undertake development drilling under the first stage production plans for the Bentley heavy oilfield in the North Sea from Q4 2011. The news follows a £5 million draw on the company’s standby equity distribution agreement earlier this month.
This ensures Xcite, which is listed on AIM and TSX, now has the drilling hardware to push ahead with development of this heavy oilfield, which has so far exceeded the expectations of the management team. A key well drilled late last year, the much watched 6z horizontal well, which saw investors pile into the stock, driving the share price up 550 per cent from 65 pence in August to 425 pence per share as test results were announced in December, proved the reservoir had high porosity, high permeability and high productivity. The well flowed at 2,900 bpd with the rate constrained by the limits of the testing equipment.
Provisionally, the company reckons there are 750 million barrels of oil in place, with a low case of 120 million and a high case of 250 million with a P50 of 200 million barrels. That’s without any enhanced oil recovery, which could increase that number by 50 to 100 per cent. Xcite has 100 per cent. An updated CPR is due out shortly, which should lay the foundation for development of an asset that has been a seven-year labour of love for the management team and could make Xcite, which listed on AIM in November 2007, one of the largest oil companies on the exchange.
Yet news that the key drilling contract is now in place received a rather muted response on Monday, with the shares dropping 14.5 pence to 368 pence. Analysts at Ambrian Oil & Gas believe this is because so many question marks still remain about how this capital intensive project will be funded by the dual-listed company.
“The capex associated with a full-field development of a crude with characteristics such as those at Bentley (high viscosity of up to 1000Cp and gravity of 10-12° API) will run into the billions and, for a small company, we suggest the task of taking on such a large-scale development is simply unrealistic,” said the Ambrian analysts in a note. “Accepting Xcite will not (or cannot) take Bentley on alone leads you down a path that ends with the conclusion that a significant farm-down will be necessary in order to bring in a larger operating partner, with much deeper pockets and a proven heavy oil operating track record. No noises with respect to a potential farm-out have yet been made, and with the industry not appearing to be lining up to get access to Bentley, this is concerning in our opinion.”
Some investors are also concerned about the lack of clarity about the terms agreed with the Bentley Alliance, which includes AMEC and BP. The Alliance is a group of contractors who have agreed to work on a risk and reward basis, a formula which enables Xcite to capture industry-leading expertise and secure the best people by providing enhanced returns for performance. This may be a win-win for the operator-contractor relationship and ensure a Rolls Royce engineering job, but investors are left rather in the dark as to just how much is on the table for the contractors and how much will be retained by Xcite.
Shares in the company rose 800 per cent in 2009 and 700 per cent in 2010, making it one of the favourites among oily investors. While there has been some easing back of the share price to below the £4 a share marker, inevitably some profit taking following the stellar gains of the past year, the stock is likely to remain a favourite pick of many investors given management’s track record of delivery and the upside in the Bentley reservoir, which many believe will be at the top end of expectations given the success of that 6z well. Some clarity on the future financing of the development would, however, be much welcomed by investors in the relatively near-term.
U.K. inflation risks will be highlighted by January inflation data
The U.K. January consumer price index (CPI), is expected to rise to 4% today, double the 2% target rate and the highest since the early 1990's, whilst retail price index (RPI) inflation which includes mortgage costs will rise from 4.8% to possibly as high as 5.5%. How many U.K. workers are getting pay increases this year in line with inflation? The answer is not many! Things are going to get a lot tougher for home owners when interest rates start increasing this year meaning even less disposable income.
Obama finally makes move to get U.S. budget deficit under control
With a total national debt standing at a record $14.1 trillion and the U.S. Budget deficit at $1.65 trillion and over 10% of GDP (the total spend being $3.7 trillion) this year it was about time that someone started worrying about balancing the books. The deficit has risen from $1.3 billion last year. Normally at this stage in the economic cycle, deficits start to drop, but not in the Obama administration. The age of austerity hasn't yet hit U.S. tax payers, but surely its only a matter of time? We we know in the U.K. steps to tackle a deficit can be politically unpopular and can hinder economic growth if over draconian.
Yesterday President Obama announced that he plans to start making cuts for the budget year starting October 2012 with the aim of reducing the deficit by $1.1 trillion over ten years. These include rolling back Bush era tax cuts for families making more than $250,000 annually, reducing tax breaks for oil and gas companies and for U.S. companies’ overseas income and freezing government employees salaries for 5 years. Defence spending would be cut by $78 billion and a five-year freeze on discretionary spending would reduce the deficit by about $400 billion.
The questions for Obama are - is this too little too late?, will this package of cuts get through Congress and the Senate especially with the next Presidential election in 2012? In the meantime, the U.S. government can only hope that China, Japan and others continue buying treasury bonds to sustain this debt burden.
Yesterday President Obama announced that he plans to start making cuts for the budget year starting October 2012 with the aim of reducing the deficit by $1.1 trillion over ten years. These include rolling back Bush era tax cuts for families making more than $250,000 annually, reducing tax breaks for oil and gas companies and for U.S. companies’ overseas income and freezing government employees salaries for 5 years. Defence spending would be cut by $78 billion and a five-year freeze on discretionary spending would reduce the deficit by about $400 billion.
The questions for Obama are - is this too little too late?, will this package of cuts get through Congress and the Senate especially with the next Presidential election in 2012? In the meantime, the U.S. government can only hope that China, Japan and others continue buying treasury bonds to sustain this debt burden.
Monday, February 14, 2011
Happy to have exited ARM Holdings short last week at a profit, after it hits ten year high
ARM Holdings (ARM) rose 6.5% or 40p to a ten year high today as Goldman Sachs raised its price target to 800p saying a valuation of 23 times 2015 earnings was justified for a “strategic asset”. Goldman said that whilst ARM was earning 1 per cent royalties at the moment, newer deals had a charge closer to 2 per cent. Looks like the directors sold their shares at the wrong time last week and a relief for me that I closed my short at a profit at less than 590p with the shares hitting 651p today.
Gulf Keystone Shaikan 3 update
Gulf Keystone (GKP) announced today that Shaikan-3 shallow appraisal well in the Kurdistan Region of Iraq has achieved a flow rate of 9,800 barrels of oil per day, 30% over the 7,480 barrels per day previously achieved. The shares were pretty steady, up 1.5p at 173p. My previous post on Gulf Keystone, questions buying the shares at this sort of level given the geopolitical risks. Watching for a buying opportunity below 140p, but not diving in yet (http://contrarianinvestoruk.blogspot.com/2011/02/gulf-keystone-petroleum-interesting.html).
Sirius Minerals falls 11% on fears about Chinese Adavale partnership
I missed the significance of the Sirius Minerals (SXX announcement) this morning in relation to the potential partnership with Sino-agri Mining on the Australian Adavale potash project. The implications are covered by the story on the iii.co.uk site below.
http://www.iii.co.uk/articles/14288/partnership-doubts-knock-shares-sirius
http://www.iii.co.uk/articles/14288/partnership-doubts-knock-shares-sirius
Partnership doubts knock shares in Sirius
| 
Shares in AIM-listed potash developer Sirius Minerals (SXX) slumped on Monday after the firm cast doubt on the potential Chinese partnership for the Adavale project in Queensland Australia.
Back in August Sirius announced it had entered into a memorandum of understanding (MOU) with Sino-Agri Mining Industry to explore ways of working together to exploit Sirius’s wholly-owned Adavale project.
The 180 initial exclusivity period on the MOU is due to end tomorrow, but Sirius said it is continuing discussions with Sino-Agri about potential commercial agreements and that it is committed to building a long-term mutually beneficial partnership with the Chinese firm and more broadly with China.
In other areas, the group said the integration of the York Potash project was proceeding well, following the acquisition announced in January.
Sirius added that the project was moving forward on many fronts including the continued acquisition on mineral rights within the project area, analysis of extensive amounts of historical seismic data and selection of locations for the initial drilling campaign.
Sirius also updated on its operations in North Dakota and the Canning Basin project in Australia. It has acquired more land at its Williston Basin in North Dakota and continued its studies on the Canning Bain, but has yet to make any material progress in the region.
Rockhopper, Bowleven and Xcite market caps show Bowleven looks very cheap
At the current share prices of RKH (279p), BLVN (322p), and XEL (372p) we have the following valuations - see table below (based on a conservative 5 dollar per barrel model). Bowleven looks very undervalued given its finds are valued at over £7 a share, even with the political risks of working in Africa. RKH and XEL assume no exploration upside or resources upgrades, which is unlikely and still are valued at £2.05 and £3.91, excluding cash. It is worth pointing out that Rockhopper has around £200 million in cash (which will fund at least 8 more appraisal wells and seismics) and Xcite Energy has in the region of £40 million (though most of this will be spent on the Rowan Norway rig). Most takeovers are at least the 8-10 dollar per barrel range for proven reserves following a full CPR (Competent persons report).
Bad day at the office for Contrarian portfolio
Hmmm i've had better days! Every stock is down in the Contrarian Investor UK portfolio apart from Rockhopper (after a shocker on Friday) and Angel Mining, so its a case of taking the pain for today. Xcite is recovering from a sharp dive this morning that made no sense at all but it's still down 4%. Bowleven can't stop falling and Sirius has a 10% fall after its poor RNS regarding its Chinese Adavale project partnership.
It's sometimes about courage in your convictions when the portfolio takes a tumble. I have faith that research is correct on all my holdings and that they are all worth much more than today's share price action indicates. Its about taking the rough with the smooth in this game! This is what being a true Contarian investor is about and on some days it can be uncomfortable! Sometimes it takes more than a few days for a trade to come good, but inevitably they will with patience - this game is not about luck or gambling its about "buy and research" then do even more research (and don't believe everything you read on a bulletin board or even a blog!!).
It's sometimes about courage in your convictions when the portfolio takes a tumble. I have faith that research is correct on all my holdings and that they are all worth much more than today's share price action indicates. Its about taking the rough with the smooth in this game! This is what being a true Contarian investor is about and on some days it can be uncomfortable! Sometimes it takes more than a few days for a trade to come good, but inevitably they will with patience - this game is not about luck or gambling its about "buy and research" then do even more research (and don't believe everything you read on a bulletin board or even a blog!!).
Sirius Minerals issues RNS but little to say
Sirius minerals (sxx) issued a progress update RNS this morning, but saying nothing new and hence it is seeing an 11% fall this morning. Why bother until they had something more concrete?
Plenty of swings and roundabouts on Xcite this morning
Xcite Energy (xel) opened up 10p first thing this morning on the Rowan Norway rig RNS. But it didnt last long as disapointment grew that the unlikely scenario of a takeover bid wasn't announced. It has moved as low as 368p to buy. I took the opportunity to sell a bit on the spike up and have been buying on this dip. Crazy that the price is down when a major milestone of a production rig being signed has been announced. The CPR is due any time. I'm sure the market makers are gratefully accepting those shares from the those selling below 370p! If there were buyers last week purely on a takeover rumour, they weren't very clever! Wait a couple of weeks, i'm sure holders will be rewarded with nice news,
Xcite Energy signs Rowan Norway rig deal- no fireworks yet!
So no farm in, no takeover talks, no Rowan Stavanger for Xcite Energy (XEL). An RNS this morning confirms that the deal with British American Offshore for the Rowan Norway is in the bag with delivery Q4 2011. So Xcite will have oil flowing by the end of this year and with Brent Crude at around $100 a barrel things are looking mightily good. Now the key news is the CPR document which hopefully will upgrade resources significantly.
4 February 2011
Drilling Contract for "Rowan Norway" N-Class Jack-up Rig
Xcite Energy is pleased to announce that its 100% subsidiary, Xcite Energy Resources Limited ("XER"), has entered into a binding drilling contract with British American Offshore Limited("BAOL"), part of Rowan Companies, Inc. for the N-Class "Rowan Norway", a harsh environment, deep water jack-up unit, designed and built for simultaneous drilling and production, which is currently under construction.
The Rowan Norway is expected to be used to commence the first stage production of the Bentley field, the planning for which is currently being undertaken. XER expects the Rowan Norway to be made available in the fourth quarter of 2011.
Return to the madness of the dot-com bubble?
There were reports in the press last week that Twitter had been in talks with both Google and Facebook, with some estimates putting the value of the company at $10 billion. This follows the purchase of the online site the Huffington Post by AOL $315 million. There was talk that Facebook is now valued at $50 billion and Linked in announced its $175 million IPO (LinkedIn turned a profit of $10.1 million on revenue of $161 million in the first nine months of 2010, according to documents filed to the Securities and Exchange Commission).
AOL itself is infamous for the $164 billion merger with media group Time Warner completed In January 2000 at the height of the dot-com frenzy, which created AOL Time Warner. In 2002, the company was forced to report a loss of $99 billion due to the goodwill write-off related to AOL, at the time, the largest loss ever reported by a company. In 2003, the company dropped the "AOL" from its name, and removed Steve Case as executive chairman. In May 2009 Time Warner announced that it would spin off AOL as a separate independent company, with the change occurring on December 9, 2009.
AOL itself is infamous for the $164 billion merger with media group Time Warner completed In January 2000 at the height of the dot-com frenzy, which created AOL Time Warner. In 2002, the company was forced to report a loss of $99 billion due to the goodwill write-off related to AOL, at the time, the largest loss ever reported by a company. In 2003, the company dropped the "AOL" from its name, and removed Steve Case as executive chairman. In May 2009 Time Warner announced that it would spin off AOL as a separate independent company, with the change occurring on December 9, 2009.
Looks like we're heading for the day's of the 1998-2000 dot-com bubble all over again! (see my previous post on the anniversary of the bubble in March 2010 - http://contrarianinvestoruk.blogspot.com/2010/03/10th-anniversary-of-internet-bubble.html)
History of key Do-com busts from Wikipedia (http://en.wikipedia.org/wiki/Dot-com_bubble)
History of key Do-com busts from Wikipedia (http://en.wikipedia.org/wiki/Dot-com_bubble)
- Boo.com, spent $188 million in just six months[17] in an attempt to create a global online fashion store. Went bankrupt in May 2000.[18]
- Startups.com was the "ultimate dot-com startup." Went out of business in 2002.
- e.Digital Corporation (EDIG): Long term unprofitable OTCBB traded company founded in 1988 previously named Norris Communications. Changed its name to e.Digital in January 1999 when stock was at $0.06 level. The stock rose rapidly in 1999 and went from closing price of $2.91 on December 31, 1999 to intraday high of $24.50 on January 24, 2000. It quickly retraced and has traded between $0.07 and $0.165 in 2010 .[19]
- Freeinternet.com – Filed for bankruptcy in October 2000, soon after canceling its IPO. At the time Freeinternet.com was the fifth largest ISP in the United States, with 3.2 million users.[20] Famous for its mascot Baby Bob, the company lost $19 million in 1999 on revenues of less than $1 million.[21][22]
- GeoCities, purchased by Yahoo! for $3.57 billion in January 1999. Yahoo! closed GeoCities on October 26, 2009.[23]
- theGlobe.com – Was a social networking service, that went live in April 1995 and made headlines by going public on November 1998 and posting the largest first day gain of any IPO in history up to that date. The CEO became in 1999 a visible symbol of the excesses of dot-com millionaires.
- GovWorks.com – the doomed dot-com featured in the documentary film Startup.com.
- Hotmail – founder Sabeer Bhatia sold the company to Microsoft for $400 million;[24] at that time Hotmail had 9 million members.[25]
- open.com - Was a big software security producer, reseller and distributor, declared in bankruptcy in 2001.
- InfoSpace – In March 2000 this stock reached a price $1,305 per share,[26] but by April 2001 its price had crashed down to $22 a share.[26]
- lastminute.com, whose IPO in the U.K. coincided with the bursting of the bubble.
- The Learning Company, bought by Mattel in 1999 for $3.5 billion, sold for $27.3 million in 2000.[27]
- Think Tools AG, one of the most extreme symptoms of the bubble in Europe: market valuation of CHF 2.5 billion in March 2000, no prospects of having a substantial product (investor deception), followed by a collapse.[28]
- Xcelera.com, a Swedish investor in start-up technology firms.[29] "greatest one-year rise of any exchange-listed stock in the history of Wall Street." [30
China overtakes Japan as world's second biggest economy
Japan has reported a preliminary 0.3 % decline in GDP (gross domestic product) in the last quarter of 2010 as a government stimulus package which included subsidies on eco-friendly cars came to an end in the previous quarter. Japan's GDP fell by 6.3% in 2009 and 1.2% in 2008. The poor state of the Japanese economy means that China is now clearly ahead of it in terms of economic output after itself producing a 10% GDP rise in the last quarter, making China the second biggest economy in the world after the U.S..
Sunday, February 13, 2011
Could it be RNS time for Xcite Energy tomorrow at last?
Investors in Xcite Energy have been patiently waiting for news on the Rowan Norway rig. Now the deadline (extended for the second time) passed on Friday, so it seems pretty unlikely that CEO Richard Smith will either delay things yet again or issue no news at all. I'm sure lots of fellow Xcite Energy investors will be glued to their computers tomorrow morning waiting for the all important RNS.
I would be surprised if we see a takeover announcement (but of course it would be pleasant surprise), more likely I believe is that the CPR (Competent Persons Report) may be issued together with a farm-in announcement from one of the Bentley Alliance partners. It would seem incredible that the delay is purely caused by price or contractual negotiations with British American offshore who own the Rowan Norway rig. Of course the other scenario is that production may be accelerated by leasing the Rowan Stavanger before it goes to Talisman Norway in the North Sea.
So lots of possibilites, but it seems the least likely that they'll just keep quiet. If its another delay...they're lawyers need a damn good talking to!! Anyone seen any Champagne bottles piled up in a skip outside the offices in Banchory recently?
I'm keen to invest in some other companies hence I've added my watch list page (http://contrarianinvestoruk.blogspot.com/p/watch-list-shares.html) but a big chunk is tied up in Xcite so little flexibility at the moment. Come on Mr Smith, lets get this share moving again, we're fed up with it under £4!!
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