BPT - Beach Energy

[vishalt]

Yeah good on Beach.

It just doesn't have sentiment at the moment for some reason despite good oil reserves, sound management and its been capitalising by selling the oil at high prices.

Good sign today by Matthew Securities or whatever buying 7% into the company!

 

[mime]

Hmmm I've been waiting patently for this stock to explode. Hope it gets in favor with a large hedge fund or private equity.

 

[vishalt]

It's a pretty good takeover target I think, just have to be patient .

Small caps tend to behave awkwardly and slowly at times but this one has quite solid fundamentals.

 

[mime]

?? An announcement of outstanding results today and the stock falls while the rest of the energy rises. Buy on a rumor sell on the fact?

 

[roland]

?? An announcement of outstanding results today and the stock falls while the rest of the energy rises. Buy on a rumor sell on the fact?

Yes, BPT is an odd one. I have been looking for an entry point on some strength, but any signs of strength get wacked by a ton of sellers killing any SP rise.

Also since the dividend yield sucks, one would be looking for a short term gain and not get stuck with a doggy stock. NXS may be a better choice for a small oiler ?

 

[vishalt]

Nexus has falling profits though. Beach is solid, you'd better be off owning both since small caps are pretty puzzling!

 

[roland]

Nexus has falling profits though. Beach is solid, you'd better be off owning both since small caps are pretty puzzling!

Yeah, you are probably right - I feel that there is a certain amount of allure to get into Oil, but preferring day/short term trading I am finding a lot more milage from faster moving and more volatile stocks such as some of the financials (BNB, BBW, BBP, ANZ, WBC).

I wonder why you would currently consider BPT with a possible 0.03 movement a week, when you can get that in a day from the likes of ADY, BBP and many others.

 

[vishalt]

Well again, Beach has proven reserves, more proven and stable than the rest of the small oil producers.

And I've learnt that its time in the market, not timing the market. Beach just hasn't attracted enough fund manager attention yet but I'm sure it will and it might even be a takeover target.

It used to be 73c a year ago, besides .

http://www.beachpetroleum.com.au/files/reports/BPT_08April_CBA.pdf - Here is a nice recent report that I tend to agree with CommSec.

 

[vishalt]

Well Beach just gained "exclusive" exploration rights in Tanzania.

Hope they make the oil-discovery of the millennium eh.

 

[pointr]

I note that BPT has risen a bit less than 10% over the past week or so. Today it has had its largest volume since Sept 07. The last announcement from memory was an increase in holdings for Mathews Capital Partners. Any thoughts on this company or recent SP movements??? We topped up our holdings at $1.30 last week so hopefully it keeps going.

 

[oldblue]

Energy stocks have had a strong day all round, as more bullish predictions circulate on the POO.
In BPT's case, it may just be catching up on a sluggish recent SP.

 

[Fab]

I read a valuation of bpt at $1.98 so we are well off a reasonable price for BPT also BHP petroleum have just said they want growth through acquisition I am wondering if bpt would be a target

 

[oldblue]

I read a valuation of bpt at $1.98 so we are well off a reasonable price for BPT also BHP petroleum have just said they want growth through acquisition I am wondering if bpt would be a target

I would hope so!

But seriously, I don't think that BPT has the resources/reserves or the prospects to attract BHP. BPT has traded in a $1-20/$1-70 ( approx) range for the 4 odd years that I've held them and I don't really see the potential to break out of that. I would feel more confident if they hadn't sold down their BMG interest from 50% to 30% during the last 12 months.
Would be happy to be convinced otherwise!

 

[vishalt]

I would hope so!

But seriously, I don't think that BPT has the resources/reserves or the prospects to attract BHP. BPT has traded in a $1-20/$1-70 ( approx) range for the 4 odd years that I've held them and I don't really see the potential to break out of that. I would feel more confident if they hadn't sold down their BMG interest from 50% to 30% during the last 12 months.
Would be happy to be convinced otherwise!

Yeah I agree, BPT's prospects are still more exploration rather than sound production. We'd be lucky to get $1.5 billion from BHP. Besides all they care about is Rio Tinto at the moment.

I'm thinking SANTOS may have an interest? Think about it, both South Australia, and 2nd/4th biggest Aussie producers respectively.

Anyway Beach is fundamentally sound at the moment with production and constant exploration, so on the technical side its looking blue skies at the moment.

I can see $1.50 - $1.70 maybe within a month if BPT can hold up at the $1.35 mark and if oil holds up and Woodside/Santos keep leading the sector.

Also BPT is trading at a valuation of 17 compared to a sector of 30 (I think), thats nearly a whopping 50% discount for a company that has sound fundamentals at the moment.

 

[vishalt]

Haha flying today, touched $1.52 almost, gogo Beach! On song now.

That $1.35 - $1.40 level should hold up now in my opinion, hopefully we can see a new base formed at $1.45 - $1.60 though.

 

[ronnieling]

Haha flying today, touched $1.52 almost, gogo Beach! On song now.

Bleh, sold out yesterday - BPT was trading at a rather large discount compared to STO/WPL and its finally posted some solid gains to bring it back in line with where the rest of the energy sector has gone. I think their recent increase in production had alot to do with Ensign solving a few issues earlier in the year which was slowing their production.

As for a possible SANTOS takeover, highly doubt it. Part of SANTOS' problem was being stuck in the Cooper/Eromanga far too long . They had plenty of leases in the basin and its surprising at all to see companies like Beach and Stuart get oil out of these area which Santos had for 25+ years.

 

[vishalt]

$1.58, almost back to all-time highs. Would be huge confidence for shareholders if it can break it! Oil breaking past US$130 barrel now, good stuff for Beach which getting some good margins in its product from what I'm hearing.

 

[Tysonboss1]

They had plenty of leases in the basin and its surprising at all to see companies like Beach and Stuart get oil out of these area which Santos had for 25+ years.

no doubt a combination of new technolgy and >$100 oil makes alot of the areas overlooked in the past very profitable now,.... I mean it was only a few years ago all was less than $40, so I would say the cooper basin still has alot left in it at todays prices,..

 

[oldblue]

$1.58, almost back to all-time highs. Would be huge confidence for shareholders if it can break it! Oil breaking past US$130 barrel now, good stuff for Beach which getting some good margins in its product from what I'm hearing.

Yes, POO at USD130 plus BPT's coal seam methane prospects should see new all time highs!
Will be very disappointed otherwise.

 

[vishalt]

$133 a barrel and more production set to come online, i thing reg nelson has successfully turned this company around from a two-decade wreck to a winning stock if you bought it in 2002