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Recruitment Specialists in Upstream Oil & Gas |
RP Newsletter December 2006
| RP provide individual
specialists to full managed teams on a short to
medium term basis to meet specific objective based
outcomes for the client.
These can range from
short peer reviews, audits, data rooms, opportunity
screening and Joint Venture representation up
to the full definition of field development plans.
Our
teams can be made available within 30 days.
On behalf
of RP, we are pleased to provide a regular monthly
newsletter on the stockmarket, courtesy of Sentinel
Financial Group
General Market Review
November has seen a flurry of trading
activity resulting in the Australian share market
reaching a record high early in the month, building
on October's stellar run. The benchmark S&P/ASX
200 Index traded as high as 5496.3 early in the
month, but was quickly sold off on the back of
declines in energy, materials and financial stocks.
Crude oil prices have seen continued
declines. Swelling stockpiles and forecasts of
a mild winter in the northern hemisphere pushed
prices down to 12 month lows despite the announcement
by OPEC of their intention to cut production by
just over 1%. Many market observers are skeptical
regarding the resolve of OPEC to follow through
with such cuts, due to the negative effect it
would have on revenues. Crude does however seem
to continue to be supported at around the $55.00/bbl
level - remarkably close to the 12 month low of
almost exactly a year ago (US$55.40/bbl on the
18 Nov 05). Traders will also be keeping a close
eye on the developing US winter, to
see whether a cold snap could potentially end
crude's recent slump.
With the notable exception of nickel,
base metal prices continue to retreat with copper
leading the falls. Rising LME inventories have
been blamed for the declines. Precious metals
on the other hand seem to be enjoying renewed
strength, with both gold and silver pushing higher.
Interesting chart patterns in all of these contracts
suggest that recent volatility might continue
in the short term.
Global
Indices
| |
Price |
Monthly
Change (%) |
| S&P
ASX200 (Australia) |
5,453 |
1.8 |
| Dow
Jones (US) |
12,222 |
1.6 |
| S&P
500 (US) |
1,400 |
2.4 |
| FSTE 100 (UK) |
6,049 |
-1.6 |
Sources: IRESS. Data as of 30/11/2006. Commodities
| |
Price |
Monthly
Change (%) |
| Gold |
$648
USD/oz |
5.0 |
| Oil
(West Texas) |
$63
USD/bbl |
7.4 |
| Copper |
$6,902
USD/t |
-5.4 |
| Nickel |
$33,050
USD/t |
1.4 |
Sources: IRESS. Data as of 30/11/2006.
Energy Focus
Movers and Shakers
S&P/ASX
300 Energy Index - The Month's Best
| Company |
ASX
Code |
Gain |
Last
Price |
Comment |
| Paladin Resources |
PDN |
+26% |
$6.91 |
Uranium price surges past US $60/lb. |
| Energy Res Aust |
ERA |
+26% |
$19.50 |
Increase in Ranger mine reserves. Uranium price. |
| Felix Resources |
FLX |
+25% |
$3.90 |
Sells 49% of Yarrabee coal
mine, Qld, for
A$68million. |
Source:
Sentinel Financial Group & IRESS. Last prices
and returns as at 24 November 2006.
S&P/ASX
300 Energy Index - The Month's Worst
| Company |
ASX
Code |
Gain |
Last
Price |
Comment |
| Centennial Coal |
CEY |
-28% |
$2.82 |
Profit downgrade and announces mine closures. |
| Straits Resources |
SRL |
-15% |
$3.61 |
Copper offtake dispute with Sempra Metals. |
| Cue Energy Resources |
CUE |
-10% |
$0.13 |
Jeruk reserves downgrade. |
Source:
Sentinel Financial Group & IRESS. Last prices
and returns as at 24 November 2006.
Who's Making
News
A selection of significant recent oil and gas
headlines.
Source:
Sentinel Financial Group & ASX.
Tin Rattlers
Recent
ASX Capital Raisings
| Company |
ASX
Code |
Date |
Details |
| Sundance Energy |
SAE |
24 Nov |
$14m placement for US gas drill programs. |
| NZ Oil & Gas |
NZO |
15 Nov |
$17.5m placement to progress oil and gas developments. |
| Alto Energy |
AOI |
14 Nov |
$2.5m placement for US seismic and 5 well drill program. |
| Energy Investments |
EIV |
13 Nov |
$5.6m placement
for Cooper Basin and Qld
CBM interests. |
| Scimitar Resources |
SIM |
10 Nov |
$2.5m placement
for uranium exploration drill programs. |
| Pancon Oil & Gas |
PCL |
8 Nov |
$0.8m placement
for working capital purposes. |
| Entek Energy |
ETE |
2 Nov |
Proposed
$2.2m placement for Gulf of Mexico interests. |
Source:
Sentinel Financial Group & ASX.
Float Hopefuls
Source:
Sentinel Financial Group & ASX.
Australian Stock Market News
It
was busy trading on the local bourse this month,
as the market powered on to record highs led by
the Industrials, Information Technology and Property
Trust sectors. Takeover speculation continued
as well, with the big talk around town surrounding
the Macquarie Bank led consortiums' takeover bid
for our national carrier, Qantas.
The
main sector weighing on the market over the month
was Telecommunications, as Telstra stock fell
back heavily from the $4 level seen around late
October as the size of the Government fire sale
continued to skyrocket from the initial $8bn estimation
to a final figure of $15.5bn. The T3 installments
traded extremely strongly however, rising from
the retail purchase price of $2 to as high as
$2.35 at the time of writing, a handy 17.5% profit
for retail traders, and a still handy 12.5% for
the institutions who had to pay the higher $2.10
bookbuild price. This
strength and renewed confidence in the stock saw
Telstra stock bounce late in the month from its
lows around $3.58, closing at $3.77 at the time
of writing.
A
selection of significant company news:
| Company |
ASX
Code |
Details |
| Westpac |
WBC |
Announces double digit profit growth, despite increasing
cost and margin pressures. |
| Worley Parsons |
WOR |
Awarded 2nd phase of significant Belene Nuclear Power Plant project. |
| CSR Ltd. |
CSR |
Announce appointment of Jerry Maycock as new CEO, replacing Alex Brennan
from March 2007. |
| Burns Philip |
BPC |
Rank announces acquisition of >90% of BPC stock clearing
way for removal of BPC quotation. |
| Harvey Norman |
HVN |
Private equity deal announced, selling Rebel Sport at
$4.60 vs previous
price of $4.35. |
| Macquarie Bank |
MBL |
Announces 1st half profit growth of 51% YOY
with $730 million result. |
| Qantas |
QAN |
MBL and Texas Pacific led consortium announce private
equity takeover bid for Qantas. |
| Australian Wheat Board |
AWB |
Release of Cole Enquiry - recommending eleven staff be
investigated for possible criminal and
corporate offences over Iraq kickback
scandal. |
| Tabcorp |
TAH |
Issues AGM profit warning. |
|
|
| Source: Sentinel Financial Group & AEGIS.
Data covered represents a selection of the market
only and should not be considered to be complete.
Sentinel Financial Group accepts no responsibility
for the accuracy or completeness of these details.
Key Dates of interest (dividends and upcoming
events)
S&P/ASX 100 Companies
| Date |
ASX
Code |
Company
Name |
Event |
Dividend
Amount |
| F 11 Dec |
MOF |
Macquarie Office Trust |
AGM |
|
| Th 7 Dec |
MCW |
Macquarie Countrywide Trust |
AGM |
|
| M 11 Dec |
LNN |
Lion Nathan |
Ex Div |
20C ff |
| M 11 Dec |
JHX |
James Hardie Industries |
Ex Div |
US 5c uf |
| Th 14 Dec |
WBC |
Westpac Bank |
AGM |
|
| F 15 Dec |
ANZ |
ANZ Bank |
AGM |
|
| W 20 Dec |
SGB |
St George Bank |
AGM |
|
| Th 21 Dec |
Options |
Options expiry day |
|
|
| Th 21 Dec |
ORI |
Orica Ltd. |
AGM |
|
| Th 21 Dec |
MXG |
Multiplex Group |
Ex Div |
TBC |
| Th 21 Dec |
CFX |
CFS Retail Property Trust |
Ex Div |
TBA |
| Th 21 Dec |
CPA |
Cth Property Office Fund |
Ex Div |
TBA |
| M 25 Dec |
Ho, Ho, Ho! |
Christmas! |
|
|
ff = fully
franked; pf
= partly franked;
uf = unfranked; TBA = to be announced; TBC = to be confirmed
Please
note, all dates and amounts shown are preliminary
and subject to change without notice. Data covered
represents a selection of the market only and should
not be considered to be complete. Sentinel Financial
Group accepts no responsibility for the accuracy
or completeness of these details.
Stock in Focus - Qantas
Shares
in our national carrier soared during November,
as information emerged that a consortium led by
Macquarie Bank and US private equity firm Texas
Pacific had begun talks with Qantas regarding a
reputed A$10 billion plus offer for the airline.
Whilst
the stock rallied sharply on the news, any deal
is still not certain with potential sticking points
to any transaction apparent. One of the most significant
of these however is the foreign ownership restriction,
which ensures that Qantas remains majority Australian
owned - although spokesmen for the bid team have
stated that this requirement will not be breached
by the proposed arrangement. Macquarie Bank has
also stated that it won't go ahead without board
support, meaning that it is likely that current
management of the airline will hold a meaningful
interest in the new structure.
Both lead
partners do have valuable experience in the airlines
sector, with Macquarie Bank operating the Sydney Airport as well as
an aircraft leasing business from which potential
synergies could be extracted. Texas Pacific have
even more relevant experience, having turned around
both Continental Airlines and US Airlines previously
- although both of these transactions involved a
salvage mission for a distressed company in need
of fresh funds; which contrasts strongly with Qantas,
which is already a highly profitable, well run airline
with adequate access to capital.
Market
speculation suggests that should a takeover bid
be made, a price around $5.50 per shares is possible
- still a significant premium to the current market
price. Investors should also be aware that a withdrawal
of interest from the potential buyers could result
in a substantial share price fall (remember Coles
Myer!).
Source:
Sentinel Financial Group, AEGIS and IRESS. Sentinel
Financial Group accepts no responsibility for the
accuracy or completeness of these details.
About Sentinel Financial Group
Sentinel
Financial Group Pty Ltd is the parent corporation
to a number of financial services organisations
providing specialist financial knowledge to private
and corporate clients. Our focus is on building
client wealth through the provision of reliable
service, quality advice and personalised
investment strategies. Our group is comprised of:
·
Sentinel Stockbroking - Sentinel Stockbroking specialises in the provision of advice and execution
on all forms of ASX traded equities and derivatives.
The company is a participating organisation
of the Australian Stock Exchange Group and provides
services including:
·
Stockbroking Execution and Advice
- Offering efficient trading and execution services,
with the benefit of professional research and advice
from your own personal Investment Adviser.
·
Portfolio Management Services
- Sentinel Portfolio Services will help you to design,
construct and maintain a share portfolio specifically
tailored to your needs. Our experienced Investment
Advisers then assist you to monitor and review your
portfolio on an ongoing basis and recommend changes
where necessary.
·
Income Generating Strategies
- Take advantage or our wealth of experience in
utilising options strategies to generate an attractive,
lower risk income stream in any market environment.
·
Sentinel CFD - Sentinel CFD is a dedicated
CFD business offering comprehensive advisory, research
and order execution functions. Our primary focus
is to provide informed ideas and strategies to enable
our clients to effectively utilise CFDs. Clients
can choose from the following services:
·
CFD trading recommendations - Sentinel CFD draws on the
resources, infrastructure and research of SFG to
provide a comprehensive advisory service to our
CFD clients. Our in-house research process incorporates
fundamental, technical and event analysis to deliver
regular, timely and specifically tailored long and
short trading strategies and investment ideas to
CFD investors.
·
Online CFD trading platform
- Self directed traders are able to take advantage
of our state of the art trading platform, giving
live trading access to over 500 of Australia's
top companies. Combined with our high interest cash
account and convenient online reporting functions,
we are able to provide a complete online trading
solution.
·
Sentinel Partners
- providing a wide range of accounting services including
taxation advice and return lodgment; personal and
business accounts and reporting; GST and BAS reporting;
establishment and management of self managed superannuation
funds and companies; and much more.
Please visit our group website
for more information - www.sentinelgroup.com.au
OR call to speak to an adviser
on (08) 9225 0027
Bulletin Board (Current
Offers from Sentinel)
ü
Open an account and receive
free access to our daily market report
ü
Enquire about our latest division
specialising in CFDs
ü
Interested in effectively
managing your tax bill? Speak to Sentinel
today about a range of alternatives including:
ü
Margin Lending
ü
Protected Loans
ü
Options
ü
Do you have holdings in the
market that you would like to protect? Our advisers
can show you how options and other derivatives can
be used to hedge your positions in these volatile
markets.
For
further information on how Sentinel can help you
with your investment and trading needs, contact
Peter Bell on (08) 9225 0027, or by email at pbell@sentinelgroup.com.au
Disclosures & Disclaimers
All
information in this newsletter is provided courtesy
of Sentinel Financial Group for the sole use of
clients and contacts of RP.
DISCLAIMER
Sentinel
Financial Group Pty Ltd (ABN 26 104 456 288) is
an Australian Financial Services Licensee holder
(ASFL No. 230542) and a Participating Organisation of the Australian Stock Exchange.
Sentinel Financial Group's directors, officers,
representatives, authorised
representatives, members and agents believe the
information contained in this document is correct
and that any estimates, opinions or recommendations
in this document are reasonably held at the time
of compilation, but may change without notice.
No guarantee or warranty is given, or representation
made, as to accuracy or completeness.
Past investment or trading performance is
not a reliable indicator of future performance. To the extent permitted by
law, Sentinel Financial Group disclaims all liability
and responsibility for any direct or indirect loss
or damage which may be suffered by any recipient
through relying on anything in or omitted from this
document. Advice included in this document is general
advice, based solely on consideration of the investment
or trading merits of the securities alone without
taking into account the investment objectives, financial
situation and particular needs (i.e. financial circumstances)
of any particular person. You should not act on any
recommendation issued by Sentinel Financial Group
without first consulting your investment advisor
in order to ascertain whether the recommendation
(if any) is appropriate having regard to your investment
objectives, financial situation and particular needs.
DISCLOSURE
Sentinel
Financial Group Pty Ltd (ABN 26 104 456 288), its
directors, officers, representatives, authorised
representatives, members and agents declare that
they deal in financial products as part of their
business and consequently they may have a relevant
interest in the financial products recommended.
Sentinel Financial Group receives brokerage or other
benefits from dealing in financial products and
its authorised representatives, or introducers of
business, may directly share in the brokerage or
benefits. Sentinel Financial Group,
its authorised representatives
and their respective associates may have positions
in the financial products mentioned, which may change.
COPYRIGHT
& DISTRIBUTION
This
document and any information included within is
Copyright and the property of Sentinel Financial
Group Pty Ltd. All information should be viewed
as confidential. If you are not the intended recipient
of this document, you should destroy all copies
and contact the sender or Sentinel Financial Group's
office.
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This newsletter is brought to you courtesy of
Resource Personnel Pty Ltd
Unit 3, 94 Hay Street,
Subiaco Western Australia 6008
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© 2006-2007 RP Corporate Perth Western Australia |
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