AOE - Arrow Energy

[Colonel Klink]

Howdy all,

Seems a bit quiet on the AOE thread so I thought I would rectify. Any thoughts on New Hope wanting to unload 17% stake and Bank of America taking up a 5% stake on the 4th December.

I had a look at NHC, and the 5% doesn't seem to have come from them, well no statements anyway. Mind you, me not finding it doesn't mean a great deal!

Apparently there is a growing 'corporatisation' (their word)of Arrow going on , which seems to mean an increasing number of Shell appointments, ie arrow employee made redundant, Shell person instated. I don't know the extent of this, but I do know that Shell's influence is making Arrow long term workers edgy. Seems a bit like tail wagging the dog.

I guess you need systems as you get bigger and Shell trying to turn Arrow into a mini me might be regarded as a positive longer term. Nervous workers is not a good look though.

Of course, I hold.
Cheers Klink

 

[oldblue]

The BofA holding is only just above the disclosure level - 5.14% v 5% - so it's likely that they have bought over a period and are only now required to make the disclosure. Unlikely then that it's a chunk of New Hope's stock.

On the "Shellification" of AOE, this can only be to shareholders' benefit if it's binding Shell closer to AOE and increasing the likelihood of an eventual takeover offer. Not so good for AOE employees if it means that they're being overlooked, by-passed or made redundant, of course.

 

[Colonel Klink]

Old Blue.. thanks for clearing that up. I had not considered BofA just reaching a point where disclosure became neccesssary. I wonder who New Hope are talking to. A 17% stake is substantial.
You would you think that they would have been in discussion with Arrow about buying stake, not made much progress, and announced it to try to put some competitive pressure on things? Certainly the price has eased back, which doesn't help New Hope or Arrow much. Thoughts anyone?
Cheers Klink

 

[Colonel Klink]

Looks as though it was a one off purchase after all.

BUSINESS SPECTATOR
Bank of America Corp buys 37.7m Arrow Energy shares

Source: News Bites

Bank of America Corporation bought 37,709,407 Arrow Energy shares on December 4, becoming a substantial shareholder with 37,709,407 shares (5.14%).

Cheers Klink

 

[vicb]

Maybe an interesting day for Arrow ahead.
Some big orders in early, with the pre open est 4.29.
Up 7% from yesterdays close of 3.99.
But then again it may just be some market manipulation, the open price will tell the story.
No news out yet that I can see.

 

[skc]

Maybe an interesting day for Arrow ahead.
Some big orders in early, with the pre open est 4.29.
Up 7% from yesterdays close of 3.99.
But then again it may just be some market manipulation, the open price will tell the story.
No news out yet that I can see.

Don't get too excited.

Every single big stock is showing huge jumps on open - CBA and BHP both have
match price up 10%.

Something to do with SPI expiry or options expiry. So don't be disappointed when the ASX200 don't jump 8% today

 

[WiseMum]

Santos match price also hugely up. It could also be one of the funds with money sitting on the sidelines coming back in before the end of the year. We'll soon see...

 

[skyQuake]

Santos match price also hugely up. It could also be one of the funds with money sitting on the sidelines coming back in before the end of the year. We'll soon see...

And now its matching down heaps. Just SPI expiry playing games. Even some of the small/micro caps are matching funny
Also woodside comes out of trading halt today following their entitlement issue

 

[WiseMum]

... and many of those inflated match prices are now straight back down. It seems SKC might be right!

 

[eddyeagle]

Looking at the AOE chart, do the movements from July 2009 to now, look like a flag to anyone else?

You had a move up from $3 to $4.75 on strong volume, followed by several months of consolidation and now the price seems to be breaking out of the flag.

Thoughts?

 

[Nero64]

I thought technically a downward facing flag or pennant should begin from the highest upper left hand point and not from the bottom. It seems more like a downward channel trend and it has just broken out of it.

Sentiment, news and the overall market rise has caused it to leap forward. I wouldn't get to too technical. Next you will be seeing aliens and flying saucers. Beam me up Scotty

 

[eddyeagle]

Arrow Energy Limited (ASX:AOE, Arrow) is pleased to announce a significant reserves upgrade certified by independent consultants Netherland, Sewell and Associates Inc (NSAI) and MHA Petroleum Consultants LLC (MHA).
Arrow’s gross proved and probable (2P) reserves have increased 50.3 percent to 6,150 PJ while gross proved, probable and possible (3P) reserves are up 18.6 percent to 11,042 PJ. The company has added 3,458 gross 2P reserves in 12 months which substantially exceeded our target to add at least 1,000 PJ of gross 2P in 2009.

Deutsche Bank getting on board in the last few days.

 

[vicb]

Shell take over rumors may be back on the board.

http://www.businessweek.com/news/20...mpt-shell-to-make-offer-rbs-morgans-says.html

 

[SteeleBryant]

Shell take over rumors may be back on the board.

Could happen. I think they are a pretty good price now. Might wait for an upward trend before investing though.

 

[Dukey]

I'm back in on AOE today for a few $$.
- Recent price correction, on top of reserves upgrades and generally undervalued, - plus the consistent rumours - however remote the possibility - of a t/o, or even multiple offers, and resulting premium give an extra incentive.
...- all these add up to good reasons to be in rather than out IMO.

- good luck all!! - D

 

[snowking]

Saw some news this morning that Arrow may have been approached by Shell with a 3.3 billion takeover bid, which would equate to about $4.50 per share.

Article here http://www.businessspectator.com.au/bs.nsf/Article/Shell-bids-33bn-for-Arrow-Energy-report-says-pd20100308-3BRUY?OpenDocument&src=eaih&ir=4

 

[vicb]

Saw some news this morning that Arrow may have been approached by Shell with a 3.3 billion takeover bid, which would equate to about $4.50 per share.

Article here http://www.businessspectator.com.au/bs.nsf/Article/Shell-bids-33bn-for-Arrow-Energy-report-says-pd20100308-3BRUY?OpenDocument&src=eaih&ir=4

Yes correct.
Plus a new share in arrow international.
The offer is $4.45 + shares in arrow international.
Depending what the new shares are worth the offer looks interesting and should be valued at higher then $4.50.

 

[Dukey]

gonna be very interesting watching the action today - though I got stopped out a week ago ... DOH... DOUBLE DOH!!

looking or an entry..

 

[vicb]

Yes will be interesting.
I will be looking to top up my holdings.
Offer I hope will be increased, offer is a little low.
Another bidder would be a great result but with Shells stake in AOE already it would make it very hard for another bidder.

 

[laurie]

Don't forget that NHC has a blocking parcel after the QGC rip off if this is sold off below $6 we are also going to be ripped off

laurie